Company Is Walmart

Identify your company by writing a summary that includes the following elements:

o Name of the chief executive officer

o Location of the home office

o Ending date of the latest fiscal year

o Description of the principal products or services that the company provides

o Main geographic area of activity

o Name of the company's independent accountants/auditors (not the audit

committee). Explain what the accountants said about the

company's financial statements.

o The most recent price of the company's stock and its dividend per share. Be

sure to provide the date for this information.

b. Industry Situation and Company Plans

Describe the industry and its outlook; then summarize the company's future plans

based on your research. Include relevant information about the company's plans from that

discussion. Be sure that you provide citation for all your sources.

c. Financial Statements

Income Statement: Is the format most like a single-step or multistep format?

Determine gross margin, income from operations, and net income for the last two

years; comment on the increases or decreases in these amounts.

Balance Sheet: Show that Assets = Liabilities + Stockholders' Equity for the past two

years.

Statement of Cash Flows: Are cash flows from operations more or less than net

income for the past two years? Is the company expanding through investing

activities? What is the company's most important source of financing? Overall, has

cash increased or decreased over the past two years?

d. Accounting Policies

What are the significant accounting policies, if any, relating to revenue recognition,

cash, short-term investments, merchandise inventories, and property and equipment?

e. Financial Analysis

For the past two years, calculate and discuss the significance of the following ratios:

Liquidity Ratios

o Working capital

o Current ratio

o Receivable

turnover

o Average days'

sales uncollected

o Inventory

turnover

o Average days'

inventory on hand

o Payables turnover

o Average days'

payable

o Operating cycle

o Financing period

Profitability Ratios

o Profit margin

o Asset turnover

o Return on assets

o Return on equity

Long-Term Solvency Ratios

o Debt-to-equity

o Interest coverage

Cash Flow Adequacy

o Cash flow yield

o Cash flows to

sales

o Cash flows to

assets

o Free cash flow

Market Strength Ratios

o Price/earnings per share

o Dividends yield