Financial_Analysis(9)

Discussion of Results from Profitability AnalysisNote the differences between key components of the traditional and alternative FY 2005 ROE decompositions:Wal-Mart Traditional Asset Turnover ROA Financial Leverage 2.61 9.3% 2.43 Wal-Mart Alternative 41.6 16.10% 0.53 Target Traditional 1.63 7.50% 2.48 Target Alternative 2.59 13.40% 0.56