Financial Analysis of Wal-Mart

Overview of Wal-Mart1

Latest Financial Statement1

Income Statement1

Summary2

Balance Sheet3

Summary4

Cash Flow Statement4

Summary6

Statement of Owner's Equity6

Summary7

Ratio Analysis7

Liquidity Ratios7

Leverage Ratios8

Efficiency Ratios8

Profitability Ratios9

Investment Valuation Ratios9

Comparison with the Industry10

Key Statistics10

Forecasted Stock Price11

Pertinent Information Regarding12

Recommendation13

References14

Appendix15

Appendix A - Tables15

Appendix B - Figures22

Financial Analysis of Wal-Mart

Overview of Wal-Mart

Wal-Mart is one of the key players of the global consumer retail industry with three prime business segments including, the Sam's Club, the Wal-Mart U.S. and the Wal-Mart International. Wal-Mart is a publicly traded company with headquarters located in Bentonville, Arkansas, United States (New York Times, 2013).

The company has assured its survival and sustainable business profits under the leadership of Mike Duke, who is CEO of the company. As of FY 12, the company has employed approximately 2.2 million personnel with global operations in 26 countries including the US, Canada, Europe, Asia, Mexico and Africa (Hoovers, 2013).

Latest Financial Statement

Income Statement

Wal-Mart Stores Inc. (WMT)

 

 

Fiscal Years Ended January 31,

 

(Amounts in $ millions except per share data)

 

 

2012

Revenues:

 

Net sales

443,854 Membership and other income

3,096 446,950

Costs and expenses:

 

Cost of sales

335,127 Operating, selling, general and administrative expenses

85,265

Operating income

26,558

Interest:

 

Debt

2,034 Capital leases

288 Interest income

(162)

Interest, net

2,160

Income from continuing operations before income taxes

24,398

Provision for income taxes:

 

Current

6,742 Deferred

1,202 7,944

Income from continuing operations

16,454

Income (loss) from discontinued operations, net of tax

(67)

Consolidated net income

16,387

Less consolidated net income attributable to noncontrolling interest

(688)

Consolidated net income attributable to Walmart

15,699 Basic income per common share

 

Basic income per common share from continuing operations attributable to Walmart

4.56 Basic income (loss) per common share from discontinued operations attributable to Walmart

(0.02)

Basic net income per common share attributable to Walmart

4.54

Diluted net income per common share:

 

Diluted income per common share from continuing operations attributable to Walmart

4.54 Diluted income (loss) per common share from discontinued operations attributable to Walmart

(0.02)

Diluted net income per common share attributable to Walmart

4.52

Weighted-average common shares outstanding:

 

Basic

3,460 Diluted

3,474

Dividends declared per common share

 

1.46

Table 1: Income Statement (Wal-Mart, 2012, p. 32)

Summary

Overview of latest incomes statement states that Wal-Mart has produced net sales of worth $ 443,854 million with a total cost of production $ 335,127 million. The FY 12 remained profitable for the company with GP of $ 108,727 million, 24% of the annual turnover. Moreover, the company generated an annual operating income of $ 26,558million with an appropriate control over business costs. Similarly, the company has improved the income from operating activities by improving business efficiencies. Furthermore, the company posted an annual consolidated business income of $ 16,387million (Wal-Mart, 2012).

Balance Sheet

Wal-Mart Stores Inc. (WMT)

 

 

As of January 31,

 

(Amounts in millions except per share data)

2012

 

 

ASSETS

 

Current assets:

 

Cash and cash equivalents 6,550 Receivables, net 5,937 Inventories 40,714 Prepaid expenses and other

1,685 Current assets of discontinued operations

89 Total current assets 54,975

Property and equipment:

 

Property and equipment

155,002 Less accumulated depreciation (45,399)

Property and equipment, net 109,603

Property under capital lease:

 

Property under capital lease

5,936

Less accumulated ...