Project Deliverables 1. Submit the following deliverables in a single Excel file with three sheets: a. A horizontal financial statement analysis of your company over the last five years. b. A vertical financial statement analysis of your company for 2020 & 2021. c. Conduct a ratio analysis for your company for 2019, 2020, & 2021. 2. Submit a report as a Word document addressing each of the following questions in no more than three double-spaced pages: a. What trends are present relating to your company's sales, cost of goods sold, and operating expenses over the period studied? b. What explanations can you identify for the trends you identified in 2(a)? c. Compare your vertical financial statement analysis in 2021 to 2020. What trends are present relating to your company's vertical financial statement analysis? d. What explanations can you identify for the trends you identified in 2(c)? e. What trends are present in your ratio analysis? f. What explanations can you identify for the trends you identified in 2(e)? g. Compare your ratio analysis to the retail industry ratios provided on Canvas. How does your company compare to the overall retail industry? What explanations exist for your company's differences? h. If you had the opportunity to request additional information from your company to inform your analysis, what information would you request from them? Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions Jan. 31, Jan. 31, Jan. 31, Jan. 31, 2022 Jan. 31, 2021 Jan. 31, 2020 2019 2018 2017 Revenues: Net sales Membership and other income $567,762 4,992 $ 555,233 3,918 Total revenues 572,754 559,151 $519,926 4,038 523,964 $510,329 4,076 514,405 $495,761 4,582 500,343 $481,317 4,556 485,873 Costs and expenses: Cost of sales 429,000 420,315 Operating, selling, general and administrative expenses 117,812 116,288 Operating income 25,942 22,548 394,605 385,301 108,791 107,147 20,568 21,957 373,396 361,256 106,510 101,853 20,437 22,764 Interest: Debt 1,674 1,976 2,262 1,975 1,978 2,044 Finance lease 320 339 337 371 352 323 Interest income Interest, net Loss on extinguishment of debt (158) (121) (189) (217) (152) (100) 1,836 2,194 2,410 2,129 2,178 2,267 2,410 0 0 0 3,136 0 Other (gains) and losses Income before income taxes 3,000 (210) (1,958) 8,368 0 0 18,696 20,564 20,116 11,460 15,123 20,497 Provision for income taxes Consolidated net income Consolidated net income attributable to noncontrolling interest Consolidated net income attributable to Walmart Net income per common share: 4,756 6,858 4,915 4,281 4,600 6,204 13,940 13,706 15,201 7,179 10,523 14,293 (267) (196) (320) (509) (661) (650) $ 13,673 $ 13,510 $14,881 $6,670 $9,862 $ 13,643 Basic net income per common share attributable to Walmart (in USD per share) $4.90 $4.77 $5.22 $2.28 $3.29 $ 4.40 Diluted net income per common share attributable to Walmart (in USD per share) $4.87 $4.75 $5.19 $2.26 $3.28 $4.38 Weighted-average common shares outstanding: Basic (in shares) Diluted (in shares) Dividends declared per common share (in USD per share) 2,792 2,831 2,850 2,929 2,995 3,101 2,805 2,847 2,868 2,945 3,010 3,112 $2.20 $2.16 $2.12 $ 2.08 $2.04 $2 Consolidated Balance Sheets - USD ($) $ in Millions Current assets: Jan. 31, 2022 Jan. 31, 2021 Jan. 31, 2020 Jan. 31, 2019 Jan. 31, 2018 Cash and cash equivalents Receivables, net $14,760 8,280 $ 17,741 $9,465 $7,722 $ 6,756 6,516 6,284 6,283 5,614 Inventories 56,511 44,949 44,435 44,269 43,783 Prepaid expenses and other 1,519 20,861 1,622 3,623 3,511 Total current assets 81,070 90,067 61,806 61,897 59,664 Property and equipment, net 94,515 92,201 105,208 104,317 107,675 Operating lease right-of-use 13,758 13,642 17,424 assets Finance lease right-of-use assets, 4,351 4,005 4,417 7,078 7,143 net Goodwill 29,014 28,983 31,073 31,181 18,242 Other long-term assets 22,152 23,598 16,567 14,822 11,798 Total assets 244,860 252,496 236,495 219,295 204,522 Current liabilities: Short-term borrowings 410 224 575 5,225 5,257 Accounts payable 55,261 49,141 46,973 47,060 46,092 Accrued liabilities 26,060 37,966 22,296 22,159 22,122 Accrued income taxes 851 242 280 428 645 Long-term debt due within one 2,803 3,115 5,362 1,876 3,738 year Operating lease obligations due 1,483 1,466 1,793 729 667 within one year Finance lease obligations due 511 491 511 0 0 within one year Total current liabilities 87,379 92,645 77,790 77,477 78,521 Long-term debt 34,864 41,194 43,714 43,520 30,045 Long-term operating lease 13,009 12,909 16,171 0 0 obligations Long-term finance lease 4,243 3,847 4,307 6,683 6,780 obligations Deferred income taxes and other 13,474 14,370 12,961 11,981 8,354 Commitments and contingencies Equity: Common stock 276 282 284 Capital in excess of par value 4,839 3,646 3,247 288 2,965 295 2,648 Retained earnings 86,904 88,763 83,943 80,785 85,107 Accumulated other (8,766) (11,766) (12,805) (11,542) (10,181) comprehensive loss Total Walmart shareholders' 83,253 80,925 74,669 72,496 77,869 equity Noncontrolling interest 8,638 6,606 6,883 7,138 2,953 Total equity 91,891 87,531 81,552 79,634 80,822 Total liabilities and equity $244,860 $ 252,496 $236,495 $219,295 $204,522 Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Millions 12 Months Ended Aug. 28, 2022 Aug. 29, Aug. 30, Sep. 01, 2021 2020 2019 Sep. 02, 2018 REVENUE Total revenue OPERATING EXPENSES Merchandise costs Selling, general and administrative $226,954 $195,929 $166,761 $ 152,703 $141,576 199,382 19,779 170,684 144,939 132,886 123,152 18,537 16,387 14,994 13,876 Operating Income OTHER INCOME (EXPENSE) 7,793 6,708 5,435 86 68 4,737 4,480 Interest expense Interest income and other, net INCOME BEFORE INCOME TAXES Provision for income taxes Net income including noncontrolling interests (158) (171) (160) (150) (159) 205 143 92 178 121 7,840 6,680 5,367 4,765 4,442 1,925 1,601 1,308 1,061 1,263 5,915 5,079 4,059 3,704 3,179 Net income attributable to noncontrolling interests (71) (72) (57) (45) (45) NET INCOME ATTRIBUTABLE TO COSTCO $5,844 $ 5,007 $ 4,002 $3,659 $3,134 NET INCOME PER COMMON SHARE ATTRIBUTABLE TO COSTCO: Basic (in dollars per share) $13.17 $11.30 $9.05 $8.32 $7.15 Diluted (in dollars per share) $ 13.14 $11.27 $9.02 $8.26 $7.09 Shares used in calculation (000's) Basic (shares) 443,651 444,757 443,089 442,297 439,755 444,346 443,901 442,923 441,834 438,515 Diluted (shares) Net sales REVENUE Total revenue Membership fees REVENUE Total revenue $222,730 $ 192,052 $163,220 $149,351 $138,434 $4,224 $ 3,877 $3,541 $3,352 $3,142 Sep. 01, Consolidated Balance Sheets - USD ($) $ in Millions Sep. 02, Aug. 28, 2022 Aug. 29, 2021 Aug. 30, 2020 2019 2018 CURRENT ASSETS Cash and cash equivalents $ 10,203 $ 11,258 $ 12,277 $8,384 $ 6,055 Short-term investments 846 917 1,028 1,060 1,204 Receivables, net 2,241 1,803 1,550 1,535 1,669 Merchandise inventories 17,907 14,215 12,242 11,395 11,040 Other current assets 1,499 1,312 Total current assets 32,696 29,505 1,023 28,120 1,111 23,485 321 20,289 OTHER ASSETS Property and Equipment, net 24,646 23,492 21,807 20,890 19,681 Operating lease right-of-use assets 2,774 2,890 2,788 0 Other long-term assets 4,050 3,381 2,841 1,025 0 860 Total assets 64,166 59,268 55,556 45,400 40,830 CURRENT LIABILITIES Accounts payable 17,848 16,278 14,172 11,679 11,237 Accrued salaries and benefits 4,381 4,090 3,605 3,176 2,994 Accrued member rewards 1,911 1,671 1,393 1,180 1,057 Deferred membership fees 2,174 2,042 1,851 1,711 1,624 Current portion of long-term debt Other current liabilities 73 799 95 1,699 90 5,611 4,561 3,728 3,792 2,924 Total current liabilities OTHER LIABILITIES Long-term debt, excluding current portion Long-term operating lease liabilities Other long-term liabilities Total liabilities 31,998 29,441 24,844 23,237 19,926 6,484 6,692 7,514 5,124 6,487 2,482 2,642 2,558 0 0 2,555 2,415 1,935 1,455 1,314 43,519 41,190 36,851 29,816 27,727 EQUITY Preferred stock $.005 par value; 100,000,000 shares authorized; no shares issued and outstanding 0 0 0 0 Common Stock $.005 par value; 100,000,000 shares authorized; 2 442,664,000 and 441,825,000 shares issued and outstanding Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total Costco stockholders' equity Noncontrolling interests Total equity TOTAL LIABILITIES AND EQUITY 4 4 4 6,884 7,031 6,698 6,417 6,107 (1,829) (1,137) (1,297) (1,436) (1,199) 15,585 11,666 12,879 10,258 7,887 20,642 17,564 18,284 15,243 12,799 5 514 20,647 $64,166 18,078 $59,268 421 18,705 341 15,584 304 13,103 $55,556 $45,400 $40,830