1) What is Walmart's Net Income Margin (Net Income/Total Revenues) for 2019 (Use data for the year ended January 31, 2020)?

2) What is the S&P 500's average Net Income Margin for Q4 of 2019 (list your source for the S&P 500's average Net Income for Q4 of 2019)? What does this say about Walmart and their strategy?

3) What is their Operating Income Margin (Operating Income/Total Revenues) for 2019 (Use data for the year ended January 31, 2020)?

4) What is the main expense or cost causing Walmart's Operating Income Margin to be what it is (use Income Statement)?

Walmart Inc. Consolidated Statements of Income Fiscal Years Ended January 31, 2019 2020 2018 S S s 519,926 4,038 523,964 $10,329 4,076 $14,405 495,761 4.582 500,343 394,605 108,791 20,568 385,301 107,147 21,957 373,396 106,510 20,437 (Amounts in millions, except per share data) Revenues: Net sales Membership and other income Total revenues Costs and expenses: Cost of sales Operating, selling, general and administrative expenses Operating income Interest: Debt Finance, capital lease and financing obligations Interest income Interest, niet Loss on extinguishment of debt Other (gains) and Bosses Income before income taxes Provision for income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart 2,262 337 (189) 2,410 1.975 371 (217) 1.978 352 (152) 2,178 3,136 2.129 (1,958) 20,116 4,915 15,201 8,368 11,460 4,281 7,179 (509) 6,670 15,123 4,600 10,523 (661) 9,862 (320) 14,881 Net income per common share: Basic net income per common share attributable to Walmart Diluted net income per common share attributable to Walmart S s 5.22 5.19 2.28 2.26 3.29 3.28 Weighted-average common shares outstanding Basic Diluted 2.995 2.850 2.868 2,929 2.945 3.010 2.12 S 2.08 S 2.1 Dividends declared per common share See accompanying notes 50 Consolidated Dalance Sheets As of January 31, 2020 2019 (Amount of millions) ASSETS $ S Current assets: Cash and cash equivalents Receivables.net Inventories Prepaid expenses and other Total current assets 9.465 6,284 44.435 1.622 61,806 7,722 6,283 44.269 3,623 61,897 104.317 105,208 17,424 4.417 Property and equipment, nct Operating case right-of-use assets Finance lease right-of-use assets, net Property under capital lease and financing obligations, net Cioodwill Other long-term assuts Total assets 31,073 16.567 7,078 31,181 14,822 236,495 S 219,295 $ 575 S 46,973 22.295 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Operating lease obligations due within one year Finance lease obligations due within one year Capital lease and financing obligations due within one year Total current liabilities 5.225 47,160 22.159 128 1,876 280 5,362 1,793 511 729 77,790 77.477 42.920 Long-term deht Long-term operating luase obligations Long-term finance lease obligations Long-term capital lease and financing obligations IXcfcrred income taxes and other 43,714 16,171 4,307 6,683 11,981 12,961 Commitments and contingencies 284 288 2.963 Equity: Common stock Capital in excess of par value Retained camnings Accumulated other comprehensive loss Total Walmart shareholders' equity Noncontrolling interest Total equity Total liabilities and equity 3.247 83.943 (12.805) 74,609 6,883 81,552 236,195 80,785 (11,542) 72.426 7,138 79,634 219,193 $ S Ses accompanying wores. Consolidated Statements of Cash Flows Fiscal Years Ended January 31, 2019 2020 2018 15,201 $ 7.179 S 10,523 10.529 10.987 (1.886) 15 (1,036) 320 10,678 3,516 4,850 (499) (Amorals al wlions) Cash flows from operating activities: Consolidated net income Adjustments to reconcile consolidated net income to net cash prowided by operating activities: Depreciation and amortization Unrealized (gains) and losses (Gains) and losses for disposal of business operations Asda pension contribution Deferal income taxes Loss on extinguishment of dicht Other operating activities Changes in certain assets and liabilities, net of effects of acquisitions: Receivables, net Inventories Accounts payable Accrued liabilities Accrued income taxes Net cash provided by operating activities (304) 3.136 1,210 1.981 1,734 (1.074) 154 (300) (274) (368) (1,311) 1,831 (140) 4,086 928 186 183 (557) (93) 25.255 (40) 27.753 28,337 (10,705) 321 (10,344) 519 (10,051) 378 Cash flows from investing activities: Payments for property and equipment Proceeds from the disposal of property and cquipment Proceeds from the disposal of certain operations Payments for business acquisitions, net of cash acquired Other investing activities Net cash used in investing activities 833 876 (56) 479 (14,656) (431) 1,046 (375) (77) (9,079) (9,128) (24,036) (4,656) 5,492 (1,907) (53) 15.872 (3,784) Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Repayments of long-term det Premiunt paid to extinguish debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest Purchase of noncontrolling interest Other financing activities Net cash used in financing activitics 4,148 7,476 (13,061) (3.059) (6,124) (8.296) (690) (6,048) (5,717) (555) (6,102) (7.410) (8) (208) (14,299) (629) (2.537 (261) (19,875) Effect of exchange rates on cash, cash equivalents and restricted cash (69) (438) 487 742 Net increase (decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at heginning of year Cash, cash equivalents and restricted cash at end of year 1,759 7,756 9,515 7,014 7.756 (130) 7,144 7,014 $ S Supplemental disclosure of cash flow information: Income taxes paid Interest paid 3,616 5 3.982 s 6.179 2450 2.464 2,348