Financial Analysis of Wal-Mart - 1321 Words

Financial Analysis of Wal-Mart Stores, Inc. Introduction On July 2, 1962, Sam Walton opened the first Walmart discount store in Rogers, Arkansas. Walmart is in the discount store industry and its principal competitors are Kmart, Target, ShopKo, and Meijer. Walmart’s culture has been built on a common purpose: saving people money so they can live better. By 1967, Walton had opened 24 stores and had generated $12.7 in sales. The company was officially incorporated as Walmart Stores, Inc. in 1969, and became publicly traded on the New York Stock Exchange in 1972. In 1983, the first Sam’s Club membership warehouse was opened and in 1988 opened the first Walmart supercenter, which features a complete grocery department in addition to†¦show more content†¦Although preferred stock is listed on the pie chart below, Walmart has authorized 100 shares but has not actually issued any shares. Liquidity In fiscal year 2012, Walmart had $54.975 billion in current assets and $62.6 billion in current liabilities. The current ratio for fiscal year 2012 is 0.882, which indicates that Walmart has $0.88 in current assets for each dollar of current liabilities. In fiscal year 2011, Walmart had $52.012 billion in current assets and $58.6 billion in current liabilities. The current ratio for fiscal year 2011 is 0.887, which indicates that Walmart has $0.89 in current assets for each dollar of current liabilities. Walmart’s quick ratio for fiscal year 2012 is 0.228, and their quick ratio for fiscal year 2011 is 0.266, which indicates that Walmart could pay off 22.8% of their liabilities by liquidating current assets in fiscal year 2012 and could pay off 26.6% of their liabilities by liquidating current assets in fiscal year 2011. Asset Management The total asset turnover for fiscal year 2012 is 2.29 or 229%, which indicates that sales are 229% of its assets. The total asset turnover for fiscal year 2011 is 2.32 or 232%, which indicates that sales are 232% of its assets. The average collection period for fiscal year 2012 is 4.88 days, which is indicative of customers paying their accounts in 4.88 days, and the average collection period for fiscal yearShow MoreRelatedWal-Mart Financial Analysis1135 Words   |  5 PagesIntroduction Wal-Mart was founded in 1962 by Sam Walton in Roger, Arkansas. Wal-Mart has 4,100 stores and clubs in the U.S. and a total of 7,300 unit’s world wide. It employed about 2 million associate’s world wide and approximately 1.4 million in the United States. Wal-Marts average annual total revenue rate was slightly more than 10% for the three years from the fiscal year ending 2006 to the fiscal year ending 2008. They also had a stock split of 100 %; they saw this split 11 times duringRead MoreEssay on Wal-Mart Financial Analysis1677 Words   |  7 PagesCorporate Finance: Wal-Mart Contents Corporate Finance: Wal-Mart 1 1. Introduction 2 2. Success at Delivering Value to the Shareholders in the Last 5 Years 2 2.1 Growth in Earnings 2 2.2 Growth in Dividend Declared 3 3. Valuation of Equity 4 3.1 Net Asset Value (NAV) 5 3.2 Price / Earnings Ratio 5 3.3 Discounted Free Cash Flow 7 4. Reconciliation of Differences 8 4.1 Benefits and Costs of Using Net Assets Value 9 4.2 Benefits and Costs of Using Price Earnings Ratio 9 4.3 Benefits andRead MoreFinancial Analysis : Wal Mart1691 Words   |  7 Pagesand what they should strive for. With that being said, many of today’s most successful organizations utilize competing in analytics to conquer the market. To illustrate, companies such as Wal-Mart, the biggest retailer store, claims that it provides the lowest market prices for its goods. In doing so, Wal-Mart utilizes analytics to enhance it supply chain and inventory costs (2). This example shows the importance of outstanding analytics in saving costs and generating profit. Further, data analyticsRead MoreFINANCIAL ANALYSIS OF SEARS VS. WAL-MART5339 Words   |  22 PagesFINANCIAL ANALYSIS OF SEARS VS. WAL-MART Table Content Background Analysis------------------------------------------------ 3 Financial Ratio analysis--------------------------------------------- 4 Weighted Average Cost of Capital (WACC)--------------------- 12 Working Capital Management--------------------------------------20 Dividend Policy and Tax Treatment------------------------------- 23 Conclusion------------------------------------------------------------24 Background Analysis Wal-MartRead MoreEssay Wal-Mart Financial Analysis - Fin5152039 Words   |  9 PagesWal-Mart Financial Analysis Danny J. Saldana FIN515 August 27, 2012 Professor David Felsberg I have chosen Wal-Mart as my company to do a financial analysis on. In my financial analysis I will look will be reviewing Wal-Marts financial ratios for years 2010 and 2005. I will also be looking at Target’s financial ratios for the same years to determine how Wal-Mart is doing within its industry. (All numbers are in thousands) Liquidity ratios Current ratio - Measures whether or notRead MoreWal-Mart Financial Statement Analysis3307 Words   |  14 PagesThe Paul Merage School of Business at UC Irvine | Financial Statement Analysis amp; Reporting: Earnings Quality and Asset Analysis | Company - WALMART | Kian BolooriHee Jun ChungDaejune Min | 1. Qualitative Analysis for the environment and the company (1) INDUSTRY ANALYSIS Walmart is in the discount retailer industry. This industry started in the 1950s, grew in the 1960s, and matured in the 1970s. With exception to a moderate growth period in the 1990s, the industry had remainedRead MoreFinancial Analysis Of Wal-Mart. Kathleen Brown. Acc 2051545 Words   |  7 Pages Financial Analysis of Wal-Mart Kathleen Brown ACC 205 Principals of Accounting I Instructor Woods February 17, 2017 Company Overview Wal-Mart Stores, Inc. is a company based in America and it was started in 1962. The company is in the retail industry and it operates grocery stores, discount stores, and hypermarkets. The company’s headquarters are located in Arkansas. According to the Fortune Global 500, Wal-Mart is categorized as the world’s leader in revenue. The company is also consideredRead MoreThe following report contains an analysis with an overview of Wal-Mart Inc. and it’s financial1800 Words   |  8 PagesThe following report contains an analysis with an overview of Wal-Mart Inc. and it’s financial statements. Wal-Mart, one of the biggest corporations and the largest employer in the world, has used exceptional ways of generating revenue and systems of tracking inventory, two very distinct characteristics of the company, while still maintaining a powerful imagine over all these years. I. Inventory In order to track such a large amount of inventory, Wal-Mart has employed the perpetual inventory systemRead MoreAmerican Corporation Analysis1425 Words   |  6 Pagesï » ¿ American Corporation Analysis ACC/561 September 19, 2013 Mr. Ponteja American Corporation Analysis Wal-Mart is one of the biggest retailers not only in the United States, but also internationally. The corporation was founded in Arkansas by Sam Walton in 1962 and has grown to produce revenue of over $460 billion while employing 2.2 million employees (Seeking Alpha, 2013). Wal-Mart is known for the low cost structure and has succeeded in the retail market. Although the corporation hasRead MoreWeek 5 Assignment Final Paper1735 Words   |  7 Pagesï » ¿ Wal-Mart Financial Analysis Report Michael Thomas ACC205: Principles of Accounting Instructor: Mark Stricklett November 10, 2014 Wal-Mart Financial Analysis Report In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements,