Answer the following questions as you think about the evidence you have found to indicate Walmart's strategic focus:
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? 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?
5) Share your insights into what primarily makes a Cost Advantage Business Level strategy work for Walmart?
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended January 31, 2020, or - Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number 001-6991. Walmart. WALMART INC. (Exact name of registrant as specified in its charter) DE 71-0415188 (IRS Employez Identification No.) (State or other jurisdiction of incorporation or organisation) 702 S.W. Sth Street Bentonville, AR 72716 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (479) 273-4000 Securities registered pursuant to Section 12(6) of the Act: Title of each class Trading Symbol Name of each exchange on which registered Common Stock, par value $0.10 per share WMT NYSE 1.900% Notes Due 2022 WMT22 NYSE 2.550% Notes Due 2026 WMT26 NYSE Securities registered pursuant to Section 12% of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Walmart Inc. Consolidated Statements of Income Fiscal Years Ended January 31, (mountain Millions, except perakare date) 2020 2019 2015 Revenues Net sales $19.926 510.329 $ 493,761 Membership and other income 4,035 4,076 4.382 Total revenues 323,964 314.403 300.343 Cost: and expenses Cost of sain 394,603 355,301 373,396 105,791 107,147 106,310 Operating, selling, general and administrative expenses Operating is conte 20,368 21.957 20.437 Interest: 2.262 1.973 1,975 Financs, capitalisase and financing obligations 337 371 352 Interest income (159) (132) (217) 2.129 Interest, et 2.410 2,175 Loss on extinguishment of debt 3.136 Other (gains) and losses 1,935) 5,365 Income before income taxes 20.116 11.450 13.123 Provision for income taxes 4,915 4.251 4,600 Consolidated wet income 15,201 7.179 10.323 Consolidated ser income attributable to noncontrolling interest (320) (309) (661) Consolidated set income attributable to Walmart 14.851 6,670 $ 9.562 Net income per common share: Basic set income per common size attributable to Walmart 522 $ 3.29 Diluted net income per common share attributable to Walmart 3.19 2.26 Weighted average comme sbare outstanding Basic 2,850 2,929 2093 Diluted 2.865 3.010 Divideuds declared per comumos share 5 5 2.04 See accompanying notes , 50 Walmart Inc. Consolidated Statements of Cash Flows Fiscal Years Ended January 31. 2020 2019 2018 Cimousi million Cash flows from operating activities Consolidated net income s 15,201 $ 7,179 s 10.523 Adjustments to reconcilu consolidated net income to net cash provided by operating activities: Depreciation and amortization 10,987 10,678 10.529 Unrealized (pains) and losses (1.886) 3,516 (Gains) and losses for disposal of business operations 15 4,850 Asda punsion contribution (1.036) Deferred income taxes 320 (499) (304) Loss on extinguishment of Jubt 3.136 Other operating activities 1.981 1.734 1.210 Changes in certain assets and liabilitics, net of effects of acquisitions: Receivables, not 154 (368) (1,074) Inventories (300) (1.311) (140) Accounts payable (274) 1.831 Accrued liabilities 186 183 928 Accrual income taxe 198) (40) (557) Net cash provided by operating activities 23.255 27,753 28,337 Cash flows from investing activities: Payments for property and equipment (10,705) (10.344) (10,051) 519 378 Proceeds from the disposal of property and equipment Proceeds from the disposal of certain operations 833 876 1.046 Payments for business acquisitions, not of cash acquired (56) (14,636) (375) 479 (77) Other investing activities Net cash uved in investing activities 19.128) (24,036) (9,079) Cach Nows from financing activities Cash flows from financing activities Net change in short-term borrowing (33) 4.148 5.492 15,872 7.476 Proceeds from issuance of long-term debt Rupayments of long-term del (1,907) (3,784) (13.061) Premiums paid to extinguish debe (3.0591 Dividende paid 16,048) (6,102) (6,124) Purchase of Company stock (5,717) (7.410) Dividends paid to noncontrolling interest (555) (431) Purchase of noncontrolling interest Other financing activities (908) (629) (261) Net cash wed in financing activities (14,299) (2.537) (19.875) Effect of exchange rates on cash, cash equivalents and restricted cash (438) 487 Net increase (decrease) in cash, cash equivalents and restricted cash 1,759 742 (130) 7.756 7,014 Cash, cash quivalents and restricted cash at beginning of year Casla, cash equivalents and restricted cash at end of year 7,144 5 9.513 S 7,756 S 7,014 Supplemental disclosure of cash flow information: Income taxes paid 3.616 s 3,982 $ 6,179 Interest paid 2,464 2,348 2,450 See accompanying woes
