Preview

Week 5 Final Paper Financial Statemen

Powerful Essays
Open Document
Open Document
1143 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Week 5 Final Paper Financial Statemen
Financial Statement Analysis of Walmart

Arlene Randolph

Acc 205 Principles of Accounting I

Instructor Hong Zhao

September 29, 2014

Introduction The financial health of a company is monitored by the company itself, potential investors and current investors. They are monitored to determine the stability of the company, whether the company is worth investing in or the continuance of investment. The purpose of this report is to present the Walmart Stores, Inc. financial statement analysis using the data for the years 2014, 2013 and 2012. The utilization of the horizontal and ratio analysis techniques have been used for this purpose. Walmart’s vision, through Sam Walton, to help customers “save money and live better” began in 1962 in Rogers, Arkansas. It was the desire of Sam Walton to offer “great value and great customer service”. (www.corporate.walmart.com). At the age of 44 Sam Walton opened the first Walmart store after being inspired with his store, Walton’s 5 and 10. (www.corporate.walmart.com) Walmart, with more than 11,000 stores in 27 countries is the largest company in the discount store sector. Walmart went public in 1972 with the symbol WMT listed on the NYSE. Walmart is in the discount retail industry offering everything from food to clothing, electronics to car service, etc. Walmart’s competitors include Target, Dollar General and Costco. For 2014, it appears that Walmart has its work cut out for them with the increase of Dollar General stores. “Over those last five years, Wal-Mart has managed 3.3% annualized revenue growth. Compare that to the near 11% annualized growth that one of Wal-Mart 's biggest competitors, Dollar General (NYSE: DG )” (http://www.fool.com) Target is struggling as well as their to open in the Canadian market did not go through. ”Luckily for Wal-Mart, its chief competitor Target is also struggling. Target has been facing slightly different issues, however. Target mainly operates as a North American retailer,



References: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=WMT (2012) Principles of Accounting: Volume I. San Diego, CA: Bridgepoint Education, Inc. http://www.prenhall.com/divisions/bp/app/cfl/RA/RatioAnalysis.html http://www.fool.com/investing/general/2014/07/18/is-wal-mart-the-latest-dead-money-stock.aspx

You May Also Find These Documents Helpful

  • Good Essays

    Walmart vs. Target

    • 1096 Words
    • 5 Pages

    Walmart has about 9,600 retails around the world it’s the World’s 18th largest public corporation. It is also the biggest private employer in the world with over 2 million employees, and is the largest retailer in the world. Walmart is a much bigger brand than Target as target only has 1,767 stores and only operates out of U.S. as of right now. Even if target is not as big as its competitor Walmart it’s still a big competition with Walmart. Both companies have their own brand which they sell at a cheaper price than other name brand items. They have many brands that range from food to clothes to household items. Many shoppers prefer Walmart and target brands over the other leading name brands. That’s because of the prices and quality of the brands. For an example Walmart food brands are mostly between 10 cents to two dollars cheaper than the name brand, and target home furnishing has good looks and quality for long lasting furniture. There’s many items that are the same that you can get at both stores, and even both stores are right next to each other in some sort some not even a mile away from each other, so if it’s not the distance that make you go into one store then the other then what is it? Both stores are mainly superstores meaning a one stop shop get everything in one store from food, to clothes to even electronics, so there really no need to go to one store pick up a few items and go to another because they don’t sell such items you were looking for. Doing my research I find a big…

    • 1096 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Walmart

    • 6499 Words
    • 26 Pages

    The first Wal-Mart store was opened in Rogers Arkansas in the Year 1962. From Wal-Mart’s company website a common misconception people have in regards to discount retailing is put to rest. That being this was the year it all started, When Kmart, Target, and Wal-Mart first opened. In actuality however, the chain of variety stores Sam Walton owned during the 1950’s faced stiff competition for many regional discount stores. In 1972, Wal-Mart stock was offered for the first time on the New York Stock Exchange. With this infusion of capital, the company grew to 276 stores in 11 states by the end of the decade. Also from the company’s official website, it is important to note that in 1983 the first Sam’s Club members-warehouse store opened. The first Supercenter opened in 1988, featuring a complete grocery, and 36 departments of general merchandise. By 1989, there were 1,402 Wal-Mart stores and 123 Sam’s Club locations. Employment had increased tenfold. Sales had grown from $1 billion in 1980, to $26 billion. Wal-Mart’s company website states that Today, 7,262 stores and club locations in 14 markets employ more than 1.9 million associates,…

    • 6499 Words
    • 26 Pages
    Powerful Essays
  • Good Essays

    Mgt/521 Management

    • 916 Words
    • 4 Pages

    Wal-Mart is probably one of the most recognizable company’s in the world. As stated earlier there are over 600 Wal-Mart discount stores in the United States. Wal-Mart has over 3,000 supercenters in the United States. They have a combination of these two styles of stores in over 28 countries around the world. Stores that are located outside of the United States operate under a different banner, but still have the same goal as their sister stores in the United States: Save people money, so they can live better. (1) Not only is the name Wal-Mart very recognizable, but each store offers the community it is located in the possibility of having a lower unemployment rate. Each discount store employs around 225 employees, where as a supercenter employs around 350 employees. Not only does Wal-Mart employ numerous employees in the United States, but outside of the United States Wal-Mart has employed over 740,000 employees in over 5,000 stores. This puts Wal-Mart as a strong player in the global business world with representation in so many countries throughout the world.…

    • 916 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Ball Corporation (BLL), based in Broomfield, Colorado, is also a leading provider of consumer goods in the manufacturing industry. The financial reports are for the twelve month period ending December 2008. The Yahoo! Finance (2010) website was used to obtain the financial statements for the Ball Corporation.…

    • 2439 Words
    • 10 Pages
    Powerful Essays
  • Better Essays

    Wal-Mart is a giant of the retailing industry yet is not immune to the pressures of globalized trade, supply, and competition. Wal-Mart’s profit sustainability is always ‘in doubt’ unless it continues to fight off various competitive conglomerates or large size retailers such as Amazon and Target. Mergers on the scale of Wal-Mart are rare yet the marketplace shifts based on the continued expansion of physical and online retailers like Amazon and Amazon’s many partner/provider organizations. To stay ahead of the various operational and governmental threats, Wal-Mart’s focus is on maintaining their low cost…

    • 1894 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Walmart vs Target

    • 824 Words
    • 4 Pages

    Since 1962 and the beginning of the discount retailer market Wal-Mart has been ahead of the retail game. By 1967 there were 24 Wal-Marts that had grossed 12.6 million dollars. In just 7 years Wal-mart had spread into 9 states. By 1979 Wal-Mart was the fastest store to reach a billion dollars in sales. In 2005 Wal-Mart has 3,800 domestic stores along with 3,800 stores internationally, and had made over 312 billion dollars. As you can see the Wal-Mart empire has grown monumentally. To move into this segment of the market would be tough.…

    • 824 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Target Corporation

    • 4839 Words
    • 20 Pages

    References: Heller, Laura. “Wal-Mart remains the price leader, but competitors are closing the gap.” DSN Retailing Today 2 Aug. 2004: 8-10. Klinefelter, Jeffrey, Neely Tamminga, and Melissa Mullikin. “Target Corporation.” Piper Jaffray 22 Sep. 2004. Kozloff, Emme, Ian Gordon, and Robert Higginbotham. “A Look at the Stand-Alone Target.” Bernstein Research Call 23 Sep. 2004. Kozloff, Emme, Ian Gordon, and Robert Higginbotham. “Discount Retail.” Bernstein Research Call 16 Oct. 2004. Lightfoot, Paul. “Wal-Martification.” ALsysinc.com 1 Jun. 2003. Schlosser, Julie. “How Target Does It.” Fortune 18 Oct. 2004: 100. Stinson, Jeff. FTN Midwest Research. 29 Sep. 2004. “Target Corp. Fighting a War on Two Fronts.” CIBC World Markets Equity Research 24 Mar. 2003. “Target Corporation.” International Directory of Company Histories Vol. 61, St. James Press, 2004. Weinswig, Deborah. Target Corporation November Credit Review, Smith Barney. 27 Dec. 2004.…

    • 4839 Words
    • 20 Pages
    Powerful Essays
  • Better Essays

    Wal-Mart Stores, Inc. is a discount variety business that began small and has grown into a worldwide multibillion dollar industry within the forty eight years of operation. Providing a brief history, analyzing the financial statements, performing an industrial comparison and trend analysis, this paper will evaluate the financial health of this corporation. (Walmart Corporate, 2010).…

    • 1737 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Financial Reporting Pt 1

    • 1292 Words
    • 4 Pages

    In this paper we will discuss Walmart’s Balance sheet and Income Statement. We will analyze the company’s total assets at the end of the most recent annual reporting year and to why it is important. We then will talk about the company’s total assets, how much cash and cash equivalents did the company have, as well as, the amount of accounts payable at the most recent year, and from the previous year. What the company’s net revenues are from the last three annual reporting periods, the change in dollars in the company’s net income from the most recent annual reporting period to the previous annual reporting period. We will talk about the company’s total assets at the end of the most recent year and the previous year from the annual reporting period. Lastly, we will discuss as to what information that has been obtained within this paper that would be important to a potential investor, employee and so forth.…

    • 1292 Words
    • 4 Pages
    Good Essays
  • Good Essays

    To effectively reach its customers, Wal- Mart‘s management for many years have managed to carry out effectively target marketing that is augmented by strategic market segmentation. As a result, the company has maintained its market share for a long period. It is poised that by the year 2100 the company is to have a third of the US market in its share (Ryan, 2006). Comparatively, the same figures apply to its main rival, Target.…

    • 780 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    I thought that Walmart is significantly higher than Target. Walmart is increasing at the steady rate, whereas Target changes a lot. Target eventually gets to a point where its still increasing but its not increasing at the same rate that Walmart is. At the end of third quarter of Walmart had nearly $210 billion in assets. On average the company sells $1.3 billion a day. While Target has just entered the Canadian market --and Big lots is pulling out of it. Walmart has operation in US, Brazil, Argentina, Canada, Central…

    • 351 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Sainsbury Ratio Analysis

    • 3791 Words
    • 16 Pages

    FIN4501 FINANCIAL REPORTING COURSEWORK GROUP MEMBERS MISIS SYED ALI AOUSAJA M00190925 MOHD OVASE BUDA M00380435 SYED ZAIN HASSAN M00375419 ZOHAIB KAMRAN M00384153 TUTORS NAME: FIROOZEH GHAFFARI SUBMISSION DATE: 19TH JANUARY 2012 WORDS COUNT: J Sainsbury PLC List of content Introduction ------------------------------------------------------------------------ 3 Justification for the selection -------------------------------------------------- 4 Review ------------------------------------------------------------------------------- 5 * Strengths ------------------------------------------------------------------- 5 * Weakness ------------------------------------------------------------------ 5 *…

    • 3791 Words
    • 16 Pages
    Satisfactory Essays
  • Powerful Essays

    Based on the information that I found on the financial statements, Wal-Mart Stores, Inc. is currently on the rise. They have increased their cash flow while decreasing their long-term debt. Their investing activities have decreased, but can be remedied with a good solid investment.…

    • 4660 Words
    • 19 Pages
    Powerful Essays
  • Best Essays

    Walmart was found in 1962 by Sam Walton, is an American public corporation that operates a chain of large discount stores and warehouse stores in various formats around the world. Listed on the New York stock exchange in 1972 (NYSE Euronest, Listing Directory, 2012). Walmart is the leading grocery chain in international which focus on sales in everyday low pricing format (Jones, 2004)…

    • 3035 Words
    • 13 Pages
    Best Essays
  • Good Essays

    In 1962, in Roger, Arkansas, Sam Walton had this brilliant idea that American consumers needed a different type of store so he opened Wal-Mart on the other hand in the same year, Dayton Hudson corporation opened “The first Target store in 1962 in the Minneapolis suburb of Roseville, Minn., with a focus on convenient shopping at competitive discount prices. Today, Target remains committed to providing a one-stop shopping experience for guests by delivering differentiated merchandise and outstanding value with its Expect More. Pay Less® brand promise. Target currently is the second largest general merchandise retailer in America, with Target.com consistently being ranked as one of the most-visited retail Web sites.” (Target.com)…

    • 1084 Words
    • 5 Pages
    Good Essays