WAL-MART`S FINANCIAL MANAGEMENT

Wal-Mart`s Financial Management

Wal-Mart`s Financial Management

Financial Management

In analysis of financial condition and results of operations, we discuss segment operating income and comparable store sales. Segment operating income refers to income from continuing operations before net interest expense, income taxes and minority interest and excludes unallocated corporate overhead and results of discontinued operations. From time to time, the measurement of each segment's operating income as changes in business needs dictate. Comparable shop sales is a assess which shows the presentation of Wal-Mart's living shops by assessing the development in sales for such shops for a specific time span over the corresponding time span in the former year. In fiscal 2008 and fiscal 2007, the procedure of assessing comparable shop sales encompassed all shops and associations that were open for not less than the preceding 12 months. Additionally, shops and associations that were relocated, amplified or altered were omitted from comparable shop sales for the first 12 months next the relocation, expansion or conversion (Zook, 2009).

During fiscal year 2008, the Company reconsidered its delineation of comparable shop sales for consistency with other retailers. For fiscal year 2009, starting February 1, 2008, Wal-Mart modified its delineation of comparable shop sales to encompass sales from shops and associations open for the preceding 12 months, encompassing remodels, relocations and expansions. Changes in format extend to be omitted from comparable shop sales when the alteration is escorted by a relocation or expansion that outcomes in a change in rectangle footage of more than five percent. Since the influence of this modification is inconsequential, the Company will not restate comparable shop sales outcomes for before described years. Comparable shop sales are furthermore mentioned to as “same store” sales by other ones inside the retail industry. The procedure of assessing comparable shop sales varies over ...