B D E F G 1 Walmart Inc. 2 Consolidated Balance Sheets Balance Sheet - Original 3 Y 2022 Y 2021 Y 2020 Y 2019 Y 2018 Y 2017 4 2022-01-31 2021-01-31 2020-01-31 2019-01-31 2018-01-31 2017-01-31 5 ASSETS 6 Current assets: : 7 Cash and cash equivalents $14,760,000,000 $17,741,000,000 $9,465,000,000 $7,722,000,000 $6,756,000,000 $6,867,000,000 8 Receivables, net , $8,280,000,000 $6,516,000,000 $6,284,000,000 $6,283,000,000 $5,614,000,000 $5,835,000,000 9 Inventories $56,511,000,000 $44,949,000,000 $44,435,000,000 $44,269,000,000 $43,783,000,000 $43,046,000,000 10 Prepaid expenses and other $1,519,000,000 $20,861,000,000 $1,622,000,000 $3,623,000,000 $3,511,000,000 $1,941,000,000 11 Total current assets $81,070,000,000 $90,067,000,000 $61,806,000,000 $61,897,000,000 $59,664,000,000 $57,689,000,000 12 Property and equipment $185,154,000,000 $179,492,000,000 13 Less accumulated depreciation ($77,479,000,000) ($71,782,000,000) 14 Property and equipment, net $94,515,000,000 $ $92,201,000,000 $105,208,000,000 $104,317,000,000 $107,675,000,000 $107,710,000,000 15 Property under capital lease and financing obligations $12,703,000,000 $11,637,000,000 16 Less accumulated amortization ($5,560,000,000) ($5,169,000,000) 17 Operating lease right-of-use assets $13,758,000,000 $13,642,000,000 $17,424,000,000 18 Finance lease right-of-use assets, net $4,351,000,000 $4,005,000,000 $4,417,000,000 19 Property under capital lease and financing obligations, net $7,078,000,000 $7,143,000,000 $6,468,000,000 20 Goodwill $29,014,000,000 $28,983,000,000 $31,073,000,000 $31,181,000,000 $18,242,000,000 $17,037,000,000 21 Other long-term assets $22,152,000,000 $23,598,000,000 $16,567,000,000 $14,822,000,000 $11,798,000,000 $9.921,000,000 22 Total assets $244,860,000,000 $252,496,000,000 $236,495,000,000 $219,295,000,000 $204,522,000,000 $198,825,000,000 23 LIABILITIES AND EQUITY 24 Current liabilities: 25 Short-term borrowings $410,000,000 $224,000,000 $575,000,000 $5,225,000,000 $5,257,000,000 $1,099,000,000 26 Accounts payable $55,261,000,000 $49,141,000,000 $46,973,000,000 $47,060,000,000 $46,092,000,000 $41,433,000,000 27 Accrued liabilities $26,060,000,000 $37,966,000,000 $22,296,000,000 $22,159,000,000 $22,122,000,000 $20,654,000,000 28 Accrued income taxes $851,000,000 $242,000,000 $280,000,000 $428,000,000 $645,000,000 $921,000,000 29 Long-term debt due within one year $2,803,000,000 $3,115,000,000 $5,362,000,000 $1,876,000,000 $3,738,000,000 $2,256,000,000 30 Operating lease obligations due within one year $1,483,000,000 $1,466,000,000 $1,793,000,000 31 Finance lease obligations due within one year $511,000,000 $491,000,000 $511,000,000 32 Capital lease and financing obligations due within one year $729,000,000 $667,000,000 $565,000,000 33 Total current liabilities $87,379,000,000 $92,645,000,000 $77,790,000,000 $77,477,000,000 $78,521,000,000 $66,928,000,000 34 Long-term debt $34,864,000,000 $41,194,000,000 $43,714,000,000 $43,520,000,000 $30,045,000,000 $36,015,000,000 35 Long-term operating lease obligations $13,009,000,000 $12,909,000,000 $16,171,000,000 36 Long-term finance lease obligations $4,243,000,000 $3,847,000,000 $4,307,000,000 37 Long-term capital lease and financing obligations $6,683,000,000 $6,780,000,000 $6,003,000,000 38 Deferred income taxes and other $13,474,000,000 $14,370,000,000 $ $12,961,000,000 $11,981,000,000 $8,354,000,000 $9,344,000,000 39 Equity: 40 Common stock $276,000,000 $282,000,000 $284,000,000 $288,000,000 $295,000,000 $305,000,000 41 Capital in excess of par value $4,839,000,000 $3,646,000,000 $3,247,000,000 $2,965,000,000 $2,648,000,000 $2,371,000,000 42 Retained earnings $86,904,000,000 $88,763,000,000 $ $83,943,000,000 $80,785,000,000 $85,107,000,000 $89,354,000,000 43 Accumulated other comprehensive loss ($8,766,000,000) ($11,766,000,000) ($12,805,000,000) ($11,542,000,000) ($10,181,000,000) $14,232,000,000) 44 Total Walmart shareholders' equity $83,253,000,000 $80,925,000,000 $74,669,000,000 $72,496,000,000 $77,869,000,000 $77,798,000,000 45 Noncontrolling interest $8,638,000,000 $6,606,000,000 $6,883,000,000 $7,138,000,000 $ $2.953,000,000 $2,737,000,000 46 Total equity $91,891,000,000 $87,531,000,000 $81,552,000,000 $79,634,000,000 $80,822,000,000 $80,535,000,000 47 Total liabilities and equity $244,860,000,000 $252,496,000,000 $236,495,000,000 $219,295,000,000 $204,522,000,000 $198,825,000,000 48 49 50 WMT Income Statement WMT-Balance Sheet WMT-Cash Flow Statements Ratio Ar Ready EO a : Accessibility: Investigate Y 2022 2022-01-31 Balance Sheet - Horizontal Growth Rate Y 2021 Y 2020 Y 2019 2021-01-31 2020-01-31 2019-01-31 Y 2018 2018-01-31 Y 2022 2022-01-31 Balance Sheet - Common Size Analysis Y 2021 Y 2020 Y 2019 2021-01-31 2020-01-31 2019-01-31 Y 2018 2018-01-31 0.060266197 0.181562643 -0.160343246 0.061173957 -0.004023653 0.013474967 -0.14764203 -0.004437938 -0.309627757 0.198701947| 0.02173913 -0.246538541 0.02139142 0.342231348 -0.027962956 -0.235239639 -0.047447519 0.031185167 0.007092199 -0.109434997 -0.054301905 0.088305286 -0.077306148 0.041931577 -0.068307228 -0.063371301 0.014084507 0.024305556 0.033898305 -0.086849399 -0.106913997 -0.10460725 -0.037620766 0.053500031 0.049901888 -0.098633346 -0.117917172 0.397898045|| -0.029101769 0.074114434 -0.00091179 0.037047799 -0.586298683 -0.07314595 -0.023518737 0.014918251 -0.003551011 -0.07272881 -0.067365877 -0.02785519 Analysis TGT Income ... : 5 E F G Y 2017 2017-01-31 $481,317,000,000 $4,556,000,000 $485,873,000,000 $361,256,000,000 $101,853,000,000 $22,764,000,000 1 Walmart Inc. 2 Consolidated Statements of Income ments Original 3 Y 2019 Y 2018 4 2019-01-31 2018-01-31 5 Revenues: 6 Net sales $510,329,000,000 $495,761,000,000 7 Membership and other income $4,076,000,000 $4,582,000,000 8 Total revenues $514,405,000,000 $500,343,000,000 9 Costs and expenses: 10 Cost of sales $385,301,000,000 $373,396,000,000 11 Operating, selling, general and administrative expenses $107,147,000,000 $106,510,000,000 12 Operating income $21,957,000,000 $20,437,000,000 13 Interest: 14 Debt $1,975,000,000 $1,978,000,000 15 Finance, capital lease and financing obligations $371,000,000 $352,000,000 16 Interest income ($217,000,000) ($152,000,000) 17 Interest, net $2,129,000,000 $2,178,000,000 18 Loss on extinguishment of debt $3,136,000,000 19 Other (gains) and losses $8,368,000,000 20 Income before income taxes $11,460,000,000 $15,123,000,000 21 Provision for income taxes $4,281,000,000 $4,600,000,000 22 Consolidated net income $7,179,000,000 $10,523,000,000 23 Consolidated net income attributable to noncontrolling inter ($509,000,000) ($661,000,000) 24 Consolidated net income attributable to Walmart $6,670,000,000 $9,862,000,000 25 Net income per common share: 26 Basic net income per common share attributable to Walmar $2.28 $3.29 27 Diluted net income per common share attributable to Walm $2.26 $3.28 28 Weighted average common shares outstanding: 29 Basic (in shares) 2,929,000,000 2,995,000,000 30 Diluted (in shares) 2,945,000,000 3,010,000,000 31 Dividends declared per common share (in USD per share) $2.08 $2.04 $2,044,000,000 $323,000,000 ($100,000,000) $2,267,000,000 $20,497,000,000 $6,204,000,000 $14,293,000,000 ($650,000,000) $13,643,000,000 $4.40 $4.38 3,101,000,000 3,112,000,000 $2.00 H 1 J K L M M N O Q R Income Statement Horizontal Growth Rate Y Y 2022 Y 2021 Y 2020 Y 2019 Y 2018 2022-01-31 2021-01-31 2020-01-31 2019-01-31 2018-01-31 Y Y 2022 2022-01-31 Income Statement Common Size Analysis Y 2021 Y 2020 Y 2019 2021-01-31 2020-01-31 2019-01-31 Y 2018 2018-01-31 -0.13083031 -0.08781267 0.06753209 -0.06922621 0.113862113 -164.1898734 0.09845032 -0.11659751 0.0230155 0.04086318 -1 0.612 0.09991442 -0.02178564 -0.4303042 0.31963351 0.355352774 3.931034483 -0.28331875 -0.12899288 0.0745153 0.34869565 -1' 1 1 0.10907632 -0.52772844 0.46580304 0.35826285 -1 -52.20973783 0.63265306 0.590625 0.29862475 -0.01664145 -1.000000001 1 0.10148038 -0.55177743 0.47856072 0.38339079 -1] -51.20973783 s Ratio Analysis TGT Income ... L Financial Statement Analysis for Walmart 1. In the group project folder, you will find the excel spread sheel that contains comparative financial statements for Walmart and Target for the past six years. 2. 3. Apply horizontal (growth rate) analysis for Walmart over the last year's number for important items in the shaded area on the Income Statement and the Balance Sheet For vertical analysis, construct the common-size income statement and common-size balance sheet for Walmart by expressing each item in the shaded area on the Income Statement and the Balance Sheet as a percentage of a relevant total within the same year. 4 In the ratio analysis sheel, calculate financial ratios for Walmart (as largel company and Target (as peer) for the latest 5 years. The ratios arc grouped into four categories: a. Profitability Ratios: Gross Margin. Prolit Margin, ROA, ROE 1. Liquidity and Efficiency Ratios: Current Ratio, Quick Ratio, A/R tumover, Inventory turnover, Total Assets Turnover c. Solvency Ratios: Dcht to Equity Ratio, Times Interest Famed d. Markel Oriented Ratios: Price Larnings Ratio, Dividend Yield Based on the calculations from above, provide a summary of findings 2. Are there any trends discovered for Walmart from the horizontal analysis? What do these trends imply about the business operations. b. Identify the significant change from the vertical analysis for Walmart. What does the change imply on business operations and what are the cconomic reasons that lead to the change? c. From the ratio analysis for both Walmart and Target, interpret the trend of the ratio change as good and bad for Walmart and the implication on business operations. B D E F G 1 Walmart Inc. 2 Consolidated Balance Sheets Balance Sheet - Original 3 Y 2022 Y 2021 Y 2020 Y 2019 Y 2018 Y 2017 4 2022-01-31 2021-01-31 2020-01-31 2019-01-31 2018-01-31 2017-01-31 5 ASSETS 6 Current assets: : 7 Cash and cash equivalents $14,760,000,000 $17,741,000,000 $9,465,000,000 $7,722,000,000 $6,756,000,000 $6,867,000,000 8 Receivables, net , $8,280,000,000 $6,516,000,000 $6,284,000,000 $6,283,000,000 $5,614,000,000 $5,835,000,000 9 Inventories $56,511,000,000 $44,949,000,000 $44,435,000,000 $44,269,000,000 $43,783,000,000 $43,046,000,000 10 Prepaid expenses and other $1,519,000,000 $20,861,000,000 $1,622,000,000 $3,623,000,000 $3,511,000,000 $1,941,000,000 11 Total current assets $81,070,000,000 $90,067,000,000 $61,806,000,000 $61,897,000,000 $59,664,000,000 $57,689,000,000 12 Property and equipment $185,154,000,000 $179,492,000,000 13 Less accumulated depreciation ($77,479,000,000) ($71,782,000,000) 14 Property and equipment, net $94,515,000,000 $ $92,201,000,000 $105,208,000,000 $104,317,000,000 $107,675,000,000 $107,710,000,000 15 Property under capital lease and financing obligations $12,703,000,000 $11,637,000,000 16 Less accumulated amortization ($5,560,000,000) ($5,169,000,000) 17 Operating lease right-of-use assets $13,758,000,000 $13,642,000,000 $17,424,000,000 18 Finance lease right-of-use assets, net $4,351,000,000 $4,005,000,000 $4,417,000,000 19 Property under capital lease and financing obligations, net $7,078,000,000 $7,143,000,000 $6,468,000,000 20 Goodwill $29,014,000,000 $28,983,000,000 $31,073,000,000 $31,181,000,000 $18,242,000,000 $17,037,000,000 21 Other long-term assets $22,152,000,000 $23,598,000,000 $16,567,000,000 $14,822,000,000 $11,798,000,000 $9.921,000,000 22 Total assets $244,860,000,000 $252,496,000,000 $236,495,000,000 $219,295,000,000 $204,522,000,000 $198,825,000,000 23 LIABILITIES AND EQUITY 24 Current liabilities: 25 Short-term borrowings $410,000,000 $224,000,000 $575,000,000 $5,225,000,000 $5,257,000,000 $1,099,000,000 26 Accounts payable $55,261,000,000 $49,141,000,000 $46,973,000,000 $47,060,000,000 $46,092,000,000 $41,433,000,000 27 Accrued liabilities $26,060,000,000 $37,966,000,000 $22,296,000,000 $22,159,000,000 $22,122,000,000 $20,654,000,000 28 Accrued income taxes $851,000,000 $242,000,000 $280,000,000 $428,000,000 $645,000,000 $921,000,000 29 Long-term debt due within one year $2,803,000,000 $3,115,000,000 $5,362,000,000 $1,876,000,000 $3,738,000,000 $2,256,000,000 30 Operating lease obligations due within one year $1,483,000,000 $1,466,000,000 $1,793,000,000 31 Finance lease obligations due within one year $511,000,000 $491,000,000 $511,000,000 32 Capital lease and financing obligations due within one year $729,000,000 $667,000,000 $565,000,000 33 Total current liabilities $87,379,000,000 $92,645,000,000 $77,790,000,000 $77,477,000,000 $78,521,000,000 $66,928,000,000 34 Long-term debt $34,864,000,000 $41,194,000,000 $43,714,000,000 $43,520,000,000 $30,045,000,000 $36,015,000,000 35 Long-term operating lease obligations $13,009,000,000 $12,909,000,000 $16,171,000,000 36 Long-term finance lease obligations $4,243,000,000 $3,847,000,000 $4,307,000,000 37 Long-term capital lease and financing obligations $6,683,000,000 $6,780,000,000 $6,003,000,000 38 Deferred income taxes and other $13,474,000,000 $14,370,000,000 $ $12,961,000,000 $11,981,000,000 $8,354,000,000 $9,344,000,000 39 Equity: 40 Common stock $276,000,000 $282,000,000 $284,000,000 $288,000,000 $295,000,000 $305,000,000 41 Capital in excess of par value $4,839,000,000 $3,646,000,000 $3,247,000,000 $2,965,000,000 $2,648,000,000 $2,371,000,000 42 Retained earnings $86,904,000,000 $88,763,000,000 $ $83,943,000,000 $80,785,000,000 $85,107,000,000 $89,354,000,000 43 Accumulated other comprehensive loss ($8,766,000,000) ($11,766,000,000) ($12,805,000,000) ($11,542,000,000) ($10,181,000,000) $14,232,000,000) 44 Total Walmart shareholders' equity $83,253,000,000 $80,925,000,000 $74,669,000,000 $72,496,000,000 $77,869,000,000 $77,798,000,000 45 Noncontrolling interest $8,638,000,000 $6,606,000,000 $6,883,000,000 $7,138,000,000 $ $2.953,000,000 $2,737,000,000 46 Total equity $91,891,000,000 $87,531,000,000 $81,552,000,000 $79,634,000,000 $80,822,000,000 $80,535,000,000 47 Total liabilities and equity $244,860,000,000 $252,496,000,000 $236,495,000,000 $219,295,000,000 $204,522,000,000 $198,825,000,000 48 49 50 WMT Income Statement WMT-Balance Sheet WMT-Cash Flow Statements Ratio Ar Ready EO a : Accessibility: Investigate Y 2022 2022-01-31 Balance Sheet - Horizontal Growth Rate Y 2021 Y 2020 Y 2019 2021-01-31 2020-01-31 2019-01-31 Y 2018 2018-01-31 Y 2022 2022-01-31 Balance Sheet - Common Size Analysis Y 2021 Y 2020 Y 2019 2021-01-31 2020-01-31 2019-01-31 Y 2018 2018-01-31 0.060266197 0.181562643 -0.160343246 0.061173957 -0.004023653 0.013474967 -0.14764203 -0.004437938 -0.309627757 0.198701947| 0.02173913 -0.246538541 0.02139142 0.342231348 -0.027962956 -0.235239639 -0.047447519 0.031185167 0.007092199 -0.109434997 -0.054301905 0.088305286 -0.077306148 0.041931577 -0.068307228 -0.063371301 0.014084507 0.024305556 0.033898305 -0.086849399 -0.106913997 -0.10460725 -0.037620766 0.053500031 0.049901888 -0.098633346 -0.117917172 0.397898045|| -0.029101769 0.074114434 -0.00091179 0.037047799 -0.586298683 -0.07314595 -0.023518737 0.014918251 -0.003551011 -0.07272881 -0.067365877 -0.02785519 Analysis TGT Income ... : 5 E F G Y 2017 2017-01-31 $481,317,000,000 $4,556,000,000 $485,873,000,000 $361,256,000,000 $101,853,000,000 $22,764,000,000 1 Walmart Inc. 2 Consolidated Statements of Income ments Original 3 Y 2019 Y 2018 4 2019-01-31 2018-01-31 5 Revenues: 6 Net sales $510,329,000,000 $495,761,000,000 7 Membership and other income $4,076,000,000 $4,582,000,000 8 Total revenues $514,405,000,000 $500,343,000,000 9 Costs and expenses: 10 Cost of sales $385,301,000,000 $373,396,000,000 11 Operating, selling, general and administrative expenses $107,147,000,000 $106,510,000,000 12 Operating income $21,957,000,000 $20,437,000,000 13 Interest: 14 Debt $1,975,000,000 $1,978,000,000 15 Finance, capital lease and financing obligations $371,000,000 $352,000,000 16 Interest income ($217,000,000) ($152,000,000) 17 Interest, net $2,129,000,000 $2,178,000,000 18 Loss on extinguishment of debt $3,136,000,000 19 Other (gains) and losses $8,368,000,000 20 Income before income taxes $11,460,000,000 $15,123,000,000 21 Provision for income taxes $4,281,000,000 $4,600,000,000 22 Consolidated net income $7,179,000,000 $10,523,000,000 23 Consolidated net income attributable to noncontrolling inter ($509,000,000) ($661,000,000) 24 Consolidated net income attributable to Walmart $6,670,000,000 $9,862,000,000 25 Net income per common share: 26 Basic net income per common share attributable to Walmar $2.28 $3.29 27 Diluted net income per common share attributable to Walm $2.26 $3.28 28 Weighted average common shares outstanding: 29 Basic (in shares) 2,929,000,000 2,995,000,000 30 Diluted (in shares) 2,945,000,000 3,010,000,000 31 Dividends declared per common share (in USD per share) $2.08 $2.04 $2,044,000,000 $323,000,000 ($100,000,000) $2,267,000,000 $20,497,000,000 $6,204,000,000 $14,293,000,000 ($650,000,000) $13,643,000,000 $4.40 $4.38 3,101,000,000 3,112,000,000 $2.00 H 1 J K L M M N O Q R Income Statement Horizontal Growth Rate Y Y 2022 Y 2021 Y 2020 Y 2019 Y 2018 2022-01-31 2021-01-31 2020-01-31 2019-01-31 2018-01-31 Y Y 2022 2022-01-31 Income Statement Common Size Analysis Y 2021 Y 2020 Y 2019 2021-01-31 2020-01-31 2019-01-31 Y 2018 2018-01-31 -0.13083031 -0.08781267 0.06753209 -0.06922621 0.113862113 -164.1898734 0.09845032 -0.11659751 0.0230155 0.04086318 -1 0.612 0.09991442 -0.02178564 -0.4303042 0.31963351 0.355352774 3.931034483 -0.28331875 -0.12899288 0.0745153 0.34869565 -1' 1 1 0.10907632 -0.52772844 0.46580304 0.35826285 -1 -52.20973783 0.63265306 0.590625 0.29862475 -0.01664145 -1.000000001 1 0.10148038 -0.55177743 0.47856072 0.38339079 -1] -51.20973783 s Ratio Analysis TGT Income ... L Financial Statement Analysis for Walmart 1. In the group project folder, you will find the excel spread sheel that contains comparative financial statements for Walmart and Target for the past six years. 2. 3. Apply horizontal (growth rate) analysis for Walmart over the last year's number for important items in the shaded area on the Income Statement and the Balance Sheet For vertical analysis, construct the common-size income statement and common-size balance sheet for Walmart by expressing each item in the shaded area on the Income Statement and the Balance Sheet as a percentage of a relevant total within the same year. 4 In the ratio analysis sheel, calculate financial ratios for Walmart (as largel company and Target (as peer) for the latest 5 years. The ratios arc grouped into four categories: a. Profitability Ratios: Gross Margin. Prolit Margin, ROA, ROE 1. Liquidity and Efficiency Ratios: Current Ratio, Quick Ratio, A/R tumover, Inventory turnover, Total Assets Turnover c. Solvency Ratios: Dcht to Equity Ratio, Times Interest Famed d. Markel Oriented Ratios: Price Larnings Ratio, Dividend Yield Based on the calculations from above, provide a summary of findings 2. Are there any trends discovered for Walmart from the horizontal analysis? What do these trends imply about the business operations. b. Identify the significant change from the vertical analysis for Walmart. What does the change imply on business operations and what are the cconomic reasons that lead to the change? c. From the ratio analysis for both Walmart and Target, interpret the trend of the ratio change as good and bad for Walmart and the implication on business operations