Part 1

Perform a vertical and horizontal analysis of Wal-Mart Stores, Inc.?s income statements and balance sheets as of January 31, 2015. In performing this analysis, consider any notable trends or changes that you observe that may provide useful information concerning its financial condition. Also use as many years? worth of statements as you feel necessary. You should write up your results in paragraph form.

Part 2

Assess Wal-Mart, Stores Inc. concerning liquidity, solvency, profitability, and stock performance as of January 31, 2015. For each area, you should calculate the ratios we discussed in class and provide an analysis of the ratios calculated. I include historical stock price information and outstanding common share information below.

Fiscal Year Ended	1/31/2015	1/31/2014	1/31/2013	1/31/2012
Adjusted Closing Price	$83.94	$71.97	$65.79	$56.32
Common Shares Outstanding (millions)	3,228	3,233	3,314	3,418

WAL MART STORES INC 10-K Income Statement (Amounts in millions except per share data) Fiscal Year Ended January 31, Revenues: Net sales Membership and other income 2015 2014 2013 2012 $482,229 $473,076 $465,604 $443,416 3,422 3,218 3,047 3,093 485,651 476,294 468,651 446,509 Costs and expenses: Cost of sales Operating, selling, general and administrative expenses 365,086 93,418 358,069 91,353 352,297 88,629 334,993 85,025 Operating income 27,147 26,872 27,725 26,491 Interest: Debt Capital leases Interest expense Interest income 2,161 300 2,461 (113) 2,072 263 2,335 (119) 1,977 272 2,249 (186) 2,034 286 2,320 (161) Interest, net 2,348 2,216 2,063 2,159 Income from continuing operations before income taxes 24,799 24,656 25,662 24,332 Provision for income taxes: Current Deferred 8,504 (519) 8,619 (514) 7,976 (18) 6,722 1,202 Total provision for income taxes 7,985 8,105 7,958 7,924 Income from continuing operations Income (Loss) from discontinued operations, net of tax 16,814 285 16,551 144 17,704 52 16,408 (21) Consolidated net income 17,099 16,695 17,756 16,387 (736) (673) (757) (688) Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart $16,363 $16,022 $16,999 $15,699 Net income per common share: Basic income per common share from continuing operations to Walmart Basic income (loss) per common share from discontinued operations $5.01 $0.06 $4.87 $0.03 $5.03 $0.01 $4.55 ($0.01) Basic net income per common share attributable to Walmart $5.07 $4.90 $5.04 $4.54 Diluted income per common share from continuing operations to Walmart Diluted income (loss) per common share from discontinued operations $4.99 $0.06 $4.85 $0.03 $5.01 $0.01 $4.53 ($0.01) Diluted net income per common share $5.05 $4.88 $5.02 $4.52 Weighted-average number of common shares: Basic Diluted Dividends declared per common share 3,230 3,243 $1.92 3,269 3,283 $1.88 3,374 3,389 $1.59 3,460 3,474 $1.46 WAL MART STORES INC 10-K Balance Sheet (Amounts in millions except per share data) January 31, ASSETS Current assets: Cash and cash equivalents Receivables Inventories Prepaid expenses and other Current assets of discontinued operations 2015 2014 2013 2012 $9,135 6,778 45,141 2,224 0 $7,281 6,677 44,858 1,909 460 $7,781 6,768 43,803 1,551 37 $6,550 5,937 40,714 1,685 89 Total current assets $63,278 $61,185 $59,940 $54,975 Property and equipment, at cost Less accumulated depreciation Property and equipment, net 177,395 (63,115) 114,280 173,089 (57,725) 115,364 165,825 (51,896) 113,929 155,002 (45,399) 109,603 Property under capital lease Less accumulated amortization Property under capital lease, net 5,239 (2,864) 2,375 5,589 (3,046) 2,543 5,899 (3,147) 2,752 5,936 (3,215) 2,721 Goodwill Other assets and deferred charges 18,102 5,671 19,510 6,149 20,497 5,987 20,651 5,456 $203,706 $204,751 $203,105 $193,406 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Short-term borrowings $1,592 Accounts payable 38,410 Accrued liabilities 19,152 Accrued income taxes 1,021 Long-term debt due within one year 4,810 Obligations under capital leases due within one ye 287 Current liabilities of discontinued operations 0 $7,670 37,415 18,793 966 4,103 309 89 $6,805 38,080 18,808 2,211 5,587 327 0 $4,047 36,608 18,154 1,164 1,975 326 26 Total current liabilities 65,272 69,345 71,818 62,300 Long-term debt Long-term obligations under capital leases Deferred income taxes and other Redeemable non-controlling interest Commitments and contingencies 41,086 2,606 8,805 0 0 41,771 2,788 8,017 1,491 0 38,394 3,023 7,613 519 0 44,070 3,009 7,862 404 0 Shareholders equity: Common stock Capital in excess of par value Retained earnings Accumulated other comprehensive income (loss) 323 2,462 85,777 (7,168) 323 2,362 76,566 (2,996) 332 3,620 72,978 (587) 342 3,692 68,691 (1,410) Total Walmart shareholders' equity 81,394 76,255 76,343 71,315 Noncontrolling interest 4,543 5,084 5,395 4,446 Total equity 85,937 81,339 81,738 75,761 $203,706 $204,751 $203,105 $193,406 Total assets Total liabilities and shareholders equity WAL MART STORES INC 10-K Statement of Cash Flows (Amounts in millions) Fiscal Year Ended January 31, Cash flows from operating activities: Consolidated net income (Income) Loss from discontinued operations, net of tax 2015 2014 2013 2012 $17,099 (285) $16,695 (144) $17,756 (52) $16,387 21 Income from continuing operations 16,814 16,551 17,704 16,408 Adjustments to reconcile income from continuing operations to net cash provided by operating activities Depreciation and amortization 9,173 Deferred income taxes (503) Other operating activities 785 8,870 (279) 938 8,478 (133) 602 8,106 1,050 468 Changes in certain assets and liabilities, net of effects of acquisitions: Increase in accounts receivable Increase in inventories Increase in accounts payable Increase in accrued liabilities (Decrease) Increase in accrued income taxes (569) (1,229) 2,678 1,249 166 (566) (1,667) 531 103 (1,224) (614) (2,759) 1,061 271 981 (796) (3,727) 2,687 30 29 Net cash provided by operating activities 28,564 23,257 25,591 24,255 Cash flows from investing activities: Payments for property and equipment Proceeds from disposal of property and equipment Proceeds from disposal of certain operations Other investing activities (12,174) 570 671 (192) (13,115) 727 0 (138) (12,898) 532 0 (271) (13,510) 580 0 (3,679) Net cash used in investing activities (11,125) (12,526) (12,637) (16,609) Cash flows from financing activities: Net change in short-term borrowings Proceeds from issuance of long-term debt Payment of long-term debt Dividends paid Purchase of Company stock Dividends paid to noncontrolling interest Purchase of noncontrolling interest Other financing activities (6,288) 5,174 (3,904) (6,185) (1,015) (600) (1,844) (409) 911 7,072 (4,968) (6,139) (6,683) (426) (296) (260) 2,754 211 (1,478) (5,361) (7,600) (282) (132) (58) 3,019 5,050 (4,584) (5,048) (6,298) (526) 0 (71) Net cash used in financing activities (15,071) (10,789) (11,946) (8,458) Effect of exchange rates on cash (514) (442) 223 (33) Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year 1,854 7,281 (500) 7,781 1,231 6,550 (845) 7,395 Cash and cash equivalents at end of year $9,135 $7,281 $7,781 $6,550 Supplemental disclosure of cash flow information Income tax paid Interest paid 8,169 2,433 8,641 2,362 7,304 2,262 5,889 2,346