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Analysis of Walmart Finances++

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Analysis of Walmart Finances++
Financial Analysis of Wal-Mart
By

Submitted January 16, 2013
To
Dr. Boniface Madu
Fin504

Abstract: Wal-Mart is the biggest family owned business on the Fortune 500 list of publically traded companies. This paper will explain the overall financial health of Wal-Mart Stores, Inc. This company has profits in the billions. There will be a look into its current market sales and net profit as well as looking at the past few years (dating back to 2009). This paper will also look at the financial health of some of its competitors. There will be a conclusion made based on Wal-Mart Stores own published financial analysis as to the health of this mega-discount giant. There are graphs and charts that will indicate the three parts of the financial analysis as well as some insights of the company’s such as Target and Costco, which are Wal-Mart’s biggest competitors.
Introduction
This is an analysis that will be conducted on Wal-Mart Stores, Inc., a fortune 500 company and the largest discount retailer. Wal-Mart was established in 1962 by Sam Walton. From its beginnings in Arkansas, it has expanded to all 50 states plus Puerto Rico, as well as other countries worldwide. It is the largest family owned business, and employs over 2 million people. Wal-Mart operates under 3 different entities: Wal-Mart US, Wal-Mart International, and Sam’s Club. This company continues to be more successful as time goes by. They are a leader in the market, which surpasses any other competitors in which the closest being Target, the others include Costco, Dollar General, and Dollar Tree. This analysis will prove that Wal-Mart will continue to surpass any and all competitors in the future as proven by their past performances which have increased year by year. There are various sources that were used in determination of the future health of Wal-Mart. Data used from the company itself, internet sources, and journal articles provided supporting evidence. There are also graphs


References: Cassicio, W. F. (2006). Decency Means More Than “Always Low Prices: A comparison of Costco to Wal-Mart’s Sam’s Club. Academy of Management Perspectives (3).26 http://educ.jmu.edu/~drakepp/principles/module2/fin_rat.pdf http://finance.yahoo.com/q/bs?s=COST+Balance+Sheet&annual http://www.gurufocus.com/news/131937/longterm-financial-analysis-of-walmart-wmt http://insight.kellogg.northwestern.edu/article/wal_mart_supercenter_versus_the_traditional_supermarket http://www.investopedia.com/terms/ Price War in Aisle 3.” Wall Street Journal, May 27, 2003 Stone, K. E. (2006). Analyzing the Impact of Wal-Mart Supercenters on local food store sales. American Journal of Agricutural Economics, (5), 1296. Doi:102307/4123607 http://www.walmartstores.com/sites/annualreport/2011/financials/2011_financials.pdf
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