Any material interruption in both our information systems and back-up systems may have a material adverse affect on our business or results of operations. We cannot predict at this time the outcome or impact of the government investigations, the shareholder lawsuits, or our own internal investigations and review. GuruFocus uses last fiscal year end divided by the latest two-year average debt to get the simplified cost of debt. Manella, Indenture Trustees, is incorporated herein by reference to Exhibit 4 b to Registration Statement on Form S-3 File Number 33-11394. Higher interest rates, higher fuel and other energy costs, weakness in the housing market, inflation, deflation, increased costs of essential services, such as medical care and utilities, higher levels of unemployment, decreases in consumer disposable income, unavailability of consumer credit, higher consumer debt levels, changes in consumer spending and shopping patterns, fluctuations in currency exchange rates, higher tax rates, imposition of new taxes and surcharges, other changes in tax laws, other regulatory changes, overall economic slowdown and other economic factors could adversely affect consumer demand for the products and services we sell through our business, change the mix of products we sell to one with a lower average gross margin, cause a slowdown in discretionary purchases of goods and result in slower inventory turnover and greater markdowns on inventory.
In addition, if consumers in the markets into which we expand are not receptive to our retail concepts or are otherwise not receptive to our presence in a market, our financial performance could be adversely affected. Our management is necessarily required to use judgment in evaluating controls and procedures. In foreign countries in which we have operations, a risk exists that our associates, contractors or agents could, in contravention of our policies, engage in business practices prohibited by U. Currency quotes are updated in real-time. We believe our relationships with our associates are good.
Financial Statements and Supplementary Data of this Annual Report on Form 10-K and is incorporated by reference in this item. Wal-Mart low cost pricing strategy is based on consolidation and aggressive takeover of other chain stores hence having an advantage over the competitors. In addition, if our costs of labor or related costs increase significantly for other reasons or if new or revised labor laws, rules or regulations or healthcare laws are adopted or implemented, our financial performance could be materially adversely affected. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases. Similar to other retailers, the Company has a large number of part-time, hourly or non-exempt associates and a large number of associates turn over each year.
Physical retail encompasses our brick and mortar presence in each market where we operate. Please go to page for more information. This Annual Report on Form 10-K, the other reports, statements, and information that Wal-Mart Stores, Inc. Indenture dated as of April 1, 1991, between the Company and J. Generally speaking, a company's assets are financed by debt and equity.
Learn more about how and how our. Suppliers ship the balance of the Walmart International segment's purchases directly to our stores in the various markets in which we operate. We also operate some restaurants and, on a limited basis, consumer finance operations. In order to avoid the continual decrease of the ratio the company would need to reduce the amount of debt incurred each year. Cost of Debt: GuruFocus uses last fiscal year end divided by the latest two-year average debt to get the simplified cost of debt.
Nationally advertised merchandise represents a significant portion of the merchandise sold in the Walmart U. Nonetheless, the long history of Walmart in progressing successfully and… 3157 Words 13 Pages Table of Contents Task 1. We utilize a total of 156 distribution facilities located in Argentina, Brazil, Canada, Central America, Chile, China, Japan, Mexico, South Africa and the United Kingdom. Our process of assessing and responding to the governmental investigations and the shareholder lawsuits continues. In particular, Brazilian federal, state and local laws are complex and subject to varying interpretations.
As such, any issue regarding the safety of any food and non-food items we sell, regardless of the cause, could adversely affect our financial performance. Consequently, this cautionary statement qualifies all of the forward-looking statements we make or that are made on our behalf, including those made herein and that are incorporated by reference herein. The main sources of cash are payables and equity or loans. We are involved in a number of legal proceedings, which include consumer, employment, tort and other litigation. Historically, its highest sales volume and segment operating income have occurred in the fiscal quarter ending January 31. The two elements in the business cycle that normally absorb the most cash are inventory and receivables. The amount earned can be used for purchases, membership fees or redeemed for cash.
How Oath and our partners bring you better ad experiences To give you a better overall experience, we want to provide relevant ads that are more useful to you. Concerns regarding the safety of food and non-food products that we source from our suppliers and then sell could cause customers to avoid purchasing certain products from us, or to seek alternative sources of supply for all of their food and non-food needs, even if the basis for the concern is outside of our control. Moreover, a security breach could require us to devote significant management resources to address the problems created by the security breach and to expend significant additional resources to upgrade further the security measures that we employ to guard such important personal information against cyberattacks and other attempts to access such information and could result in a disruption of our operations, particularly our digital retail operations. Fundamental company data and analyst estimates provided by FactSet. Price leadership is core to who we are. In addition, we are pursuing complex initiatives to transform our information technology processes and systems, which will include, for many of our information systems, establishing common processes across our lines of business. During fiscal 2015 , approximately 80% of the Walmart International segment's purchases passed through these distribution facilities.