walmart financial analysis
Wal-Mart is the largest retailer in the world. Being the largest retailer in the world is considered a huge strength because other competitors are below. This strength makes it easy to negotiate prices with suppliers. Being the number one customer gives Wal-Mart an advantage. However there is more to consider when you look at finances. For finances determines the over success of a company. Furthermore, one will have a better understanding when financial statements are considered. For example if I wanted to invest in a company, I would look into the company financial statements because I would have a better sense of knowledge of the return of money invested. But then again, what if I have no Idea how to read a financial statement, say I never took a finance class or an accounting class. How would I know that I’m investing my money in a trustworthy organization? Here is the solution, below is a financial analysis of Wal-Mart. As result you will be able to determine the suitability for investment. Typically, financial analysis is used to analyze whether an entity is stable, or profitable enough to be invested in. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. In addition, one key area of financial analysis involves extrapolating the company's past performance into an estimate of the company's future performance.
Wal-Mart is audited by Ernst & Young LLP. Ernst & Young’s believe the financial position of Wal-Mart is clearly depicted in their financial statements and in tune with the U.S. generally accepted accounting principles. The company functions globally an employs thousands of individuals. Wal-Mart is a private employer. This gives the company the opportunity to employ anyone. In addition the company can do business with whomever, as result China is one of Wal-Mart