Walmart Financial statement Analysis

Topics: Generally Accepted Accounting Principles, Balance sheet, Asset Pages: 55 (2621 words) Published: August 4, 2014
The primary products(s) and/or services (s) of the corporation

Wal-Mart is one of the largest chains, which operates in three large segments: The Walmart U.S., the Walmart International, and the Sam’s Club. In this report we are focusing mainly on Walmart US. This latter is has a momentous presence in the retail industry, operating throughout the united states. “ The Walmart U.S segment includes the Company’s mass merchant concept under the Walmart or Wal-Mart brand, as well as walmart.com.” (Reuters, n.d)

Walmart offers various lines of products and services including the following:

Retail goods, which consists of a large variety of categories, namely electronics, home furnishing, sporting goods, baby products, and grocery items (Washington, n.d)

Photo Services: Walmart makes a photo lab available for customers inside the stores and online. They are provided the possibility to upload their photos via the company’s website, or drop them off for developing via a store kiosk (Washington, n.d)

Pharmacy: Walmart started pharmacy operations as of 2006. Since then, it has been providing customers with prescriptions, which they could pick-up in-store or be shipped by mail. Walmart has available a catalog of 300 generic medications for no more than four dollars in-store, and ten dollars for a 90-day supply (Washington, n.d)

Financial Services: Besides the aforementioned products and services, Walmart also provides its customers with a wide range of financial services, namely a non-annual-fee credit card, a debit card ready to obtain in-strore or online, money transfer service through MoneyGram, and check cashing and check printing. At Walmart, customers can also purchase money orders, gift cards, and pays bills (Washington, n.d)

Wireless Services: Last but not least, Walmart partnered with T-mobile only to give birth to The Walmart Family Talk Wireless, which is a service that provides customers with a family plan for unlimited text and voice calls (Washington, n.d)

SECTION 2: BALANCE SHEET ANALYSIS

1. Using elements listed on your company’s balance sheet, prepare a common size balance sheet using the following format. (Vertical Analysis Chapter 5)

COMPANY

WAL-MART STORES INC (WMT) BALANCE SHEET Vertical Analysis

Fiscal year ends in January. USD in millions except per share data.

2013-01

VA %

2012-01

VA %

Assets

Current assets

Cash

Cash and cash equivalents

7781000

3.83%

6,550,000

3.39%

Total cash

7,781,000

3.83%

6,550,000

3.39%

Receivables

6,768,000

3.33%

5,937,000

3.07%

Inventories

43,803,000

21.57%

40,714,000

21.05%

Prepaid expenses

1,588,000

0.78%

1,685,000

0.87%

Other current assets

89,000

0.05%

Total current assets

59,940,000

29.51%

54,975,000

28.42%

Non-current assets

Property, plant and equipment

Land

25,612,000

12.61%

23,499,000

12.15%

Fixtures and equipment

43,699,000

21.52%

41,916,000

21.67%

Other properties

102,413,000

50.42%

95,523,000

49.39%

Property and equipment, at cost

171,724,000

84.55%

160,938,000

83.21%

Accumulated Depreciation

(55,043,000)

(27.10)%

(48,614,000)

(25.14)%

Property, plant and equipment, net

116,681,000

57.45%

112,324,000

58.08%

Goodwill

20,497,000

10.09%

20,651,000

10.68%

Other long-term assets

5,987,000

2.95%

5,456,000

2.82%

Total non-current assets

143,165,000

70.49%

138,431,000

71.58%

Total assets

203,105,000

100.00%

193,406,000

100.00%

Liabilities...
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