jia.wal mart,inc

7/29/2019 Jia.wal Mart,Inc

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Wal-Mart with 8,500 stores in 15 differentcountries constitutes the biggest discountdepartment store. With the analysis of thefinancial records of the last two year (2009-2010), we can see how Wal-Mart overcamethe crisis and is now better than ever. Thisexplains why it was classified as the biggestpublic companies by revenues in 2010,according to Forbes2000.

Annual report link:http://walmartstores.com/sites/annualreport/2010/


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President and CEO: Michael T. Duke. Main office:702 S.W. 8th Street Bentonville,

Arkansas 72716 USA. Latest fiscal year: January 31 2010 Principal Products: Home goods Cosmetics Clothing and Accessories Electronics

Pharmaceutical Products U.S.A., South America, U.K. it is considered

worldwide.


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Independent auditors: Ernst & Young LLP After examining the companys financial

statements, the auditors came to aconclusion that Wal-Mart, Inc. present a fairlyreport and great financials. After 2010 theyconsolidated as one of the most successfulbusinesses in North America.


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Most recent price for Wal-Mart stock is$54.87 (Feb./17/2011)

The 12 month trading range is between$46.25 and $55.20

Dividend per share: $1.09

January 31 of 2010

Buying Wal-Mart stocks is a great decision as

of now. They usually are among the beststocks to buy because each year the financialstatements get better and better.


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Wal-Mart is known because of the good pricesthey have. As long as they keep selling andproducing at that scale, no one will affect theirsuperiority.

Their goal and plan for the future is to growoperating expenses slower than sales and growoperating income faster than sales. By loweringexpenses, passing those savings on to

customers, bringing more customers in ourdoors, and selling more merchandise. Which is abasics for them in keep producing this way.


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The auditors used the multistep format toperform the Income Statement.

The reason the gross profit increased isbecause there were less costs Wal-Mart hadto assume and theyre net sales increased.

2010 2009

Gross Profit $100,389 $97,031

Income fromoperations

$23,950 $22,798

Net income $ 14,335 $ 13,400


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2010 $170,706 $99,957 $70,749 $170,706

2009 $163,429 $98,144 $65,285 $163,429

There was a good increase in assets, this could mean the company boughtmore land or equipment. This is really good for any company because asassets increase, the company is going to be bigger and stronger and

acquire more stockholders. But the liabilities(responsabilities) rises.


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The net income of the cash flows slightlyaugmented in 2010, in comparison with2009. In 2010 the cash flows correspond to14,848 and in 2009 they were of 13,899.

The company financial reports show that theydo are buying PPE. In 2009 a total of 11,499PPE was bought and in 2010 12,184 PPE.


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The statment show that a primary source offinancing is the longterm debt. On the otherhand, the stock earnings raise only upto7,276

The cash flow has increased in the past twoyears. In the 2009 it corresponded to

7,275, and in 2010 it corresponds to 7,907.

The augmentation is not much, but doesrepresent and increase.


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Revenue Recognition: The companyrecognizes sales revenue net of sales axesand estimated sales returns at the time itsells merchandise to the client.

Cash: The investments with a maturity ofthree months or less are considered cash.Also, all debit credit and etb card proces inless than a week are considrred cash.


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Inventory: The inventory is recorded in booksat its lower cost with the accounting methodLIFO (last in-first out). And the internationalinventory is valued with FIFO (first in-first

out)

Long life assests: PPE and other lonf lifeassest are sated at cost.


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Topics of the notes to the financial statements:1. Accounting policies2. Accrued liabilities3. Net income per common share4. Fair value measurements5. Derivative financial instruments

6. Income taxes7. Accumulated other comprehensive income8. Acquisitons, invetsments and disposals9. Restructuring charges10. Shared-based compensation plans11. Retirment-related benefits12. Commitments13. Segments14. Legal proceedings15. Recent accounting pronouncements16. Quarterly financial data


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Working Capital -7230 6441

Current Ratios 86.99% 88.37%

Recievable Turnover 3.63 3.55

Average days salesuncollected

7.98% 3.72%

Inventory turnover 100.65 102.71

Average daysinventory on hand

45.74 88.11


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Profit Margin 24.8% 24.25

Asset Turnover 16.3% 2.35%

Return on Assets 8.9% 8.4%

Return on equity 13.46% 19,98%


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Debt Equity 1.4 1.5


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