Retailers in America

Andrew Booth29 said:Not paying your suppliers doesn't directly impact profit. It has an indirect effect, sure, because you aren't paying the interest you would have incurred if you had actually borrowed money to pay those suppliers up.

That is technically true, but one has to consider the mechanics of the business model. Since Walmart collects most of its revenue almost instantly—either through cash at the register or via quick credit card settlements—it stands to reason that Walton is essentially floating that capital for a while before passing it along to the vendors. It’s a way of squeezing extra utility out of the cash flow. And that advantage grows even more pronounced if they manage to force suppliers into settlement agreements through offsets or compensations.

But when you actually sit down and crunch the numbers on how much he owes his suppliers—and just imagine the sheer hit he’d take if he actually had to settle those debts using other capital... 🤦
He’s essentially using them to bankroll his own expansion. Interest-free.

casuallynx8 said:That is technically true, but one has to consider the mechanics of the business model. Since Walmart collects most of its revenue almost instantly—either through cash at the register or via quick credit card settlements—it stands to reason that Walton is essentially floating that capital for a while before passing it along to the vendors. It’s a way of squeezing extra utility out of the cash flow. And that advantage grows even more pronounced if they manage to force suppliers into settlement agreements through offsets or compensations.

Those were actually the first two things I checked when digging into the Walton family's companies. Short-term liabilities and financial income. That second one blew up last year—Ice saw a 37% jump, Walmart was up 67%, Coca-Cola hit 77%, and Star shot up over 100%
.

The parent company gets its funding straight from its subsidiaries... 😉

Our local retailers are quite possibly the most dishonest bunch you’ll ever encounter.

just like every other citizen in the US (or the entire damn planet 😬 ))
I mean, you too, because at the end of the day, we’re all just merchants 😉

Andrew Booth29 said:The parent company gets its funding straight from its subsidiaries... 😉

I don't know—looking at how many of the group's star performers are showing profits this year, I'm a bit floored. I haven't gone through the financial statements with a fine-tooth comb or anything, but man, those accountants must have been working overtime—probably pulling double shifts just to make the numbers dance! 🤷

Take a look at the Leeds report, for instance... Check the Balance Sheet: AOP 011, AOP 029. Then the P&L: AOP 050.

Current assets are climbing at roughly the same rate as current liabilities—and wouldn't you know it—interest income from related parties is on the rise too. 😉
They’re essentially pulling cash from suppliers—or just racking up debt—to funnel it into other subsidiaries, most likely the parent company. As for the actual profits? Well, let's just say the accounting ladies over here in the States have always been "creative" with the books. 😁

Not paying suppliers on time, or dealing with those totally bizarre 180-day payment terms
is basically just a weird way of saying you're getting a discount for paying later instead of just paying upfront at the lower rate. Honestly, for the health of the whole economy
it would probably be way better if everyone just paid immediately at those lower prices rather than all this nonsense
where dragging your feet somehow counts as a little 5% discount or whatever.