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Analysis of Wal-Mart's 2004 Financial Statements

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Analysis of Wal-Mart's 2004 Financial Statements
ANALYSIS OF A FIRM’S FINANCIAL STATEMENTS

An Analysis of Wal-Mart’s 2004 Financial Statements

LeTourneau University

I. Executive Summary

A. Objective of paper

My objective is to analyze financial statements from the 2004 Wal-Mart Annual Report. Based on my findings and any relevant supplementary information provided about Wal-Mart and its operating environment, I will identify areas in which the company is performing well and advise management of any problem areas.

B. Summary of findings

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.

II. Firm, Industry, and Environment

A. Description of firm and its management

Wal-Mart Stores, Inc. (Wal-Mart), incorporated in October 1969, operates retail stores in various formats around the world. The Company operates through three segments: Wal-Mart Stores segment, which includes Supercenters, Discount Stores and Neighborhood Markets, Sam 's Club segment and International segment. The Wal-Mart Stores segment segment consists of three different traditional retail formats, all of which operate in the United States, and Wal-Mart 's online retail format, walmart.com. The Sam 's Club segment consists of membership warehouse clubs, which operate in the United States, and the segment 's online retail format, samsclub.com. At January 31, 2007, its International segment consisted of retail operations in 12 countries and Puerto Rico. In October 2006, the Company disposed of its South Korean and German operations (Reuters, 2007).

At January 31, 2007, the Company operated 1,075 discount stores, 2,256 supercenters, 579 Sam 's Clubs and 112 Neighborhood Markets in the United States. Internationally, at January 31, 2007, the Company operated


Bibliography: Annual Report. (2004). Wal-Mart Stores Inc. Retrieved June 6, 2007 from http://online.letu.edu/@@6e5edd58d08a141eb17dcc5346a0b857/courses Juhasz, A. (2005, December 13). Wal-Mart: Reaping profits from WTO & NAFTA. Organic Consumers Association Wikipedia. Wal-Mart Stores Inc. Retrieved June 23, 2007 from http://en.wikipedia.org/wiki/Wal-Mart Wikipedia
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