Walmart Financial Analysis Essay

Both current and long term liabilities are larger when comparing 2016 to 2015. This is from an increase to long term capital leases and financing obligations’ and to shorter term liabilities like accounts payable. Conversely, some liabilities have decreased, such as long term debt obligations, as Wal-mart pays off long term debt or its converted to short term. Their equity is higher as retained earnings increase of 3% offset a comprehensive loss of 2%. All of this shows a strong corporate structure where they use retained earnings and debt to keep control of the company while still generating large profits.

Walmart is the largest discount retailer in the world. The company started out as a small chain of stores in rural towns. Walmart was founded by Samuel Walton in 1962. In the United States they employed the most workers. Walmart supply grocery store and automotive repair shop for customers. With this being one of the largest chain stores valUes and attitudes is very important in the workplace.

The purpose of this report is to evaluate the stock price of Wal-Mart Stores Inc. (which ticker symbol in NYSE is WMT) by fundamental analysis. According to this analysis, I recommend that Wal-Mart is worth to invest in the long term because of the potential growth of market shares and revenue. Besides, based on P/E method and Gordon model, WMT price is undervalued; therefore, if investors buy the stock, they will get benefit not only in capital gain but also in dividend cash inflow.

Like any business, Wal-Mart has to continually assess their strengths, weaknesses, opportunities, and threats in order to continue to be competitive. Awareness by the executives to what is happening locally and globally will further the expansion of Wal-Mart.

Current ratio a liquidity ratio calculated as current asset divided by current liabilities. With the proven stats Wal-Mart, current ratio improved from 2014-2015 but it also deteriorated from 2015to 2016. The quick ratio is the liquidity ratio calculated cash plus short-term marketable investments plus receivable divided by current liabilities, Wal-Mart did improve from 2014 to 2015 not considering it didn’t reach the same level as 2014. Cash ratio a liquidity ratio calculated as cash plus short-term marketable investments divided by the current liabilities. Even though the cash ratio improved from 2014 to 2015 but it still did a slight deteriorated from the year 2015 to 2016.

Walmart’s liquidity ratios is a positive and steady projection of the ratio-values, which is an indication that the company is operating under a healthy environment. For example, the quick ratio is used to present the value of assets that are to offset financial obligations. In this case, the company has maintained a 1:1 ratio, which means that for every financial obligation there is a counterpart of another asset that can be used to pay for it (Stock, 2014). Therefore, inventory turnover ratio depicts an increase altogether. The percentage increases from 10 % in 2013 to 10 % in 2014, whereas, the stock is being converted into revenues at a significantly higher rate, thus, the company is placed fairly to support its operational activities. The asset turnover percentage remains steady at 2 % meaning that fewer assets are not properly managed, the company is able to support its day-to-day activities (Stock, 2014). Walmart has enough assets within the company to reach that can be used to take care of the immediate financial obligations (Stock, 2014).

Based on the information that I found on the financial statements, Wal-Mart Stores, Inc. is currently on the rise. They have increased their cash flow while decreasing their long-term debt. Their

Wal-Mart is the largest retail store in the world topping the list of the Fortune 500. It operates more than 4150 facilities across the globe while dominating in Canada, United States, and Mexico. In addition to being the wealthiest and powerful corporation, it has been ranked second among the most admired companied by the Fortune magazine. Wal-Mart sells general merchandise such as family apparel, household

Essentially, the company is strong and their stock values will continue to increase. However, as they do monopolize the market to the point that no competitors can touch them, they may end up being the only store left. In addition to all the bad press, litigation issues, lawsuits, and employee problems (particularly with illegal immigrants), has also caused them to go through a lot of financial changes and payout millions of dollars. Nonetheless, I think Wal-Mart is an excellent stock to invest in. According to The Wall Street Journal, Wal-Mart Stores Inc. topped the list in late trading for Buying on Weakness, which tracks stocks that fell in price but had the largest inflow of money. In despite the recession, Wal-Mart made $14.1 billion in free cash flow in 2010.

“Walmart” is a publicly listed company incorporated in the United States of America with branches/stores worldwide in around 27 countries. Walmart started in 1962 by Sam Walton and became incorporated in 1969 the company currently has over 11,000 stores worldwide under a number of different brands and is the world’s largest company based on its turnover / revenue. Walmart employs over 2 million people and operates with several brand names. The company is perceived as a low-cost provider of goods to the public and has

Lastly, their third largest liability is Accrued Liabilities at $19,607,000,000. Similar to their assets, their liabilities decreased in comparison to the previous year. Overall, Wal-Mart proves through their balance sheet that they are a profitable company.

Walmart is the largest retail chain in the world wide and has most of its business resident in the United States. The shares size and corresponding volumes that it needs to purchase to stock its stores gives it the bargaining power to negotiate lower wholesale prices. This translates into being able to deliver low prices to its customers. The company has been in business for several years and has become a trusted brand and a household name. The size of the company has also allowed it to be able to “cope with compressed prices and margins,” and have stores throughout the country as brick and mortar stores and now online. Walmart had a profit margin of 2.35% in its most recent quarter.

Walmart is an American multinational retail company that runs thousands of chain of department and warehouse stores with a total of 11,530 stores. Walmart is one of the largest retails in the U.S and the world. Walmart supply chain is very complex and it is considered one of the world most valuable companies. Walmart employs around of 2.3 million of associates. For the fiscal year ended on January 31, 2016, Walmart’s total revenue was $482.1 billion. The organization projects a goal of 45-60 billion “3 Year Project Sales Growth”.

Inventory management has been a major focus for Walmart Inc. Walmart uses different methods to manage its inventory. The

Wal-Mart Stores, Inc. branded as Wal-Mart, is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores. Wal-Mart is a retail giant. This company is the third largest public corporation in the world. Website link to the selected company, www.wallmart.com