FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

TASK: 1. Using the financial statements, perform the calculations for the ratios listed in the Financial ratios tab for 3 years. Refer to the chapter

TASK:

1. Using the financial statements, perform the calculations for the ratios listed in the "Financial ratios" tab for 3 years. Refer to the chapter for ratio formula. Follow the instructions on the "Financial ratios" tab on how to show your workings.

You will have to research on Reuters.com for the industry ratios, bearing in mind that you may not be able to find all the ratios that you have calculated. Also, provide an analysis of the ratios calculated.

2. With the "Common-sizing" tab, perform common sized calculations for the balance sheet and income statement for 3 years. Provide an analysis of the common-sized calculations.

3. With the "Percentage Change" tab, perform percentage change calculations for the balance sheet and income statement for 2 years (with 2014 as the base year). Provide an analysis of the percentage change calculations.

http://www.reuters.com/finance/stocks/financialHighlights?symbol=WMT.N

WAL-MART STORES INC (WMT)
WAL-MART STORES INC (WMT) BALANCE SHEET
Fiscal year ends in January. USD in millions. 2014-01 2015-01 2016-01 Ratio Calculations
Assets 2014 2015 2016 Industry
Current assets LIQUIDITY RATIOS
Cash Current ratio 0.8823
Cash and cash equivalents 7281 9135 8705 Quick ratio
Total cash 7281 9135 8705
Receivables 6677 6778 5624
Inventories 44858 45141 44469
Prepaid expenses 1909 2224 1441
Other current assets 460
Total current assets 61185 63278 60239
Non-current assets EFFICIENCY RATIOS
Property, plant and equipment Total assets turnover
Land 26184 26261 25624 Fixed assets turnover
Fixtures and equipment 45756 47851 49950 Days sales outstanding
Other properties 106738 108522 112480 Inventory turnover
Property and equipment, at cost 178678 182634 188054
Accumulated Depreciation -60771 -65979 -71538
Property, plant and equipment, net 117907 116655 116516
Goodwill 19510 18102 16695
Other long-term assets 6149 5671 6131
Total non-current assets 143566 140428 139342
Total assets 204751 203706 199581 DEBT RATIOS
Liabilities and stockholders' equity Debt-to-assets ratio
Liabilities Times-interest-earned ratio
Current liabilities
Short-term debt 11773 6402 5453
Capital leases 309 287 551
Accounts payable 37415 38410 38487
Taxes payable 3520 3613 3065
Accrued liabilities 16239 16560 17063
Other current liabilities 89 PROFITABILITY RATIOS
Total current liabilities 69345 65272 64619 Profit margin
Non-current liabilities Basic earning power
Long-term debt 41771 41086 38214 Return on total assets
Capital leases 2788 2606 5816 Return on common equity
Deferred taxes liabilities 8017 8805 7321
Minority interest 5084 4543 3065
Other long-term liabilities 1491
Total non-current liabilities 59151 57040 54416
Total liabilities 128496 122312 119035
Stockholders' equity
Common stock 323 323 317
Additional paid-in capital 2362 2462 1805 MARKET RATIOS
Retained earnings 76566 85777 90021 Price/earnings
Accumulated other comprehensive income -2996 -7168 -11597 Market/Book
Total stockholders' equity 76255 81394 80546
Total liabilities and stockholders' equity 204751 203706 199581
INCOME STATEMENT
Fiscal year ends in January. USD in millions except per share data. 2014-01 2015-01 2016-01
Revenue 476294 485651 482130
Cost of revenue 358069 365086 360984
Gross profit 118225 120565 121146
Operating expenses DUPONT ROE
Sales, General and administrative 91353 93418 97041
Total operating expenses 91353 93418 97041
Operating income 26872 27147 24105
Interest Expense 2335 2461 2548
Other income (expense) 119 113 81
Income before income taxes 24656 24799 21638
Provision for income taxes 8105 7985 6558
Minority interest 673 736 386
Other income 673 736 386
Net income from continuing operations 16551 16814 15080
Net income from discontinuing ops 144 285
Other -673 -736 -386
Net income 16022 16363 14694
Net income available to common shareholders 16022 16363 14694
Earnings per share
Basic 4.9 5.07 4.58
Diluted 4.88 5.05 4.57
Weighted average shares outstanding
Basic 3269 3230 3207
Diluted 3283 3243 3217
EBITDA 35861 36433 33640
WAL-MART STORES INC (WMT) Statement of CASH FLOW
Fiscal year ends in January. USD in millions. 2014-01 2015-01 2016-01
Cash Flows From Operating Activities
Net income 16695 17099 15080
Depreciation & amortization 8870 9173 9454
Deferred income taxes -279 -503 -672
(Gain) Loss from discontinued operations -144 -285
Accounts receivable
Inventory -1667 -1229 -703
Accounts payable 531 2678 2008
Accrued liabilities 103 1249 1303
Income taxes payable -1224 166
Other working capital -566 -569 -491
Other non-cash items 938 785 1410
Net cash provided by operating activities 23257 28564 27389
Cash Flows From Investing Activities
Investments in property, plant, and equipment -13115 -12174 -11477
Property, plant, and equipment reductions 727 570 635
Acquisitions, net -15
Other investing charges 105 479 167
Net cash used for investing activities -12298 -11125 -10675
Cash Flows From Financing Activities
Short-term borrowing 911 -6288 1235
Long-term debt issued 7072 5174 39
Long-term debt repayment -4968 -3904 -4432
Repurchases of treasury stock -6683 -1015 -4112
Cash dividends paid -6139 -6185 -6294
Other financing activities -1210 -2853 -2558
Net cash provided by (used for) financing activities -11017 -15071 -16122
Effect of exchange rate changes -442 -514 -1022
Net change in cash -500 1854 -430
Cash at beginning of period 7781 7281 9135
Cash at end of period 7281 9135 8705
Free Cash Flow
Operating cash flow 23257 28564 27389
Capital expenditure -13115 -12174 -11477
Free cash flow 10142 16390 15912
Supplemental schedule of cash flow data
Cash paid for income taxes 8641 8169 8111
Cash paid for interest 2362 2433 2540
WAL-MART STORES INC (WMT)
WAL-MART STORES INC (WMT) BALANCE SHEET
Fiscal year ends in January. USD in millions. 2014-01 COMMON-SIZED 2015-01 COMMON-SIZED 2016-01 COMMON-SIZED
Assets
Current assets
Cash
Cash and cash equivalents 7281 9135 8705
Total cash 7281 9135 8705
Receivables 6677 6778 5624
Inventories 44858 45141 44469
Prepaid expenses 1909 2224 1441
Other current assets 460
Total current assets 61185 63278 60239
Non-current assets
Property, plant and equipment
Land 26184 26261 25624
Fixtures and equipment 45756 47851 49950
Other properties 106738 108522 112480
Property and equipment, at cost 178678 182634 188054
Accumulated Depreciation -60771 -65979 -71538
Property, plant and equipment, net 117907 116655 116516
Goodwill 19510 18102 16695
Other long-term assets 6149 5671 6131
Total non-current assets 143566 140428 139342
Total assets 204751 203706 199581
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 11773 6402 5453
Capital leases 309 287 551
Accounts payable 37415 38410 38487
Taxes payable 3520 3613 3065
Accrued liabilities 16239 16560 17063
Other current liabilities 89
Total current liabilities 69345 65272 64619
Non-current liabilities
Long-term debt 41771 41086 38214
Capital leases 2788 2606 5816
Deferred taxes liabilities 8017 8805 7321
Minority interest 5084 4543 3065
Other long-term liabilities 1491
Total non-current liabilities 59151 57040 54416
Total liabilities 128496 122312 119035
Stockholders' equity
Common stock 323 323 317
Additional paid-in capital 2362 2462 1805
Retained earnings 76566 85777 90021
Accumulated other comprehensive income -2996 -7168 -11597
Total stockholders' equity 76255 81394 80546
Total liabilities and stockholders' equity 204751 203706 199581
INCOME STATEMENT
Fiscal year ends in January. USD in millions except per share data. 2014-01 COMMON-SIZED 2015-01 COMMON-SIZED 2016-01 COMMON-SIZED
Revenue 476294 485651 482130
Cost of revenue 358069 365086 360984
Gross profit 118225 120565 121146
Operating expenses
Sales, General and administrative 91353 93418 97041
Total operating expenses 91353 93418 97041
Operating income 26872 27147 24105
Interest Expense 2335 2461 2548
Other income (expense) 119 113 81
Income before income taxes 24656 24799 21638
Provision for income taxes 8105 7985 6558
Minority interest 673 736 386
Other income 673 736 386
Net income from continuing operations 16551 16814 15080
Net income from discontinuing ops 144 285
Other -673 -736 -386
Net income 16022 16363 14694
Net income available to common shareholders 16022 16363 14694
Earnings per share
Basic 4.9 5.07 4.58
Diluted 4.88 5.05 4.57
Weighted average shares outstanding
Basic 3269 3230 3207
Diluted 3283 3243 3217
EBITDA 35861 36433 33640
WAL-MART STORES INC (WMT)
WAL-MART STORES INC (WMT) BALANCE SHEET
Fiscal year ends in January. USD in millions. 2014-01 2015-01 % CHANGE FOR 2016-01 % CHANGE FOR
Assets BASE YEAR 2015-01 2016-01
Current assets
Cash
Cash and cash equivalents 7281 9135 8705
Total cash 7281 9135 8705
Receivables 6677 6778 5624
Inventories 44858 45141 44469
Prepaid expenses 1909 2224 1441
Other current assets 460
Total current assets 61185 63278 60239
Non-current assets
Property, plant and equipment
Land 26184 26261 25624
Fixtures and equipment 45756 47851 49950
Other properties 106738 108522 112480
Property and equipment, at cost 178678 182634 188054
Accumulated Depreciation -60771 -65979 -71538
Property, plant and equipment, net 117907 116655 116516
Goodwill 19510 18102 16695
Other long-term assets 6149 5671 6131
Total non-current assets 143566 140428 139342
Total assets 204751 203706 199581
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 11773 6402 5453
Capital leases 309 287 551
Accounts payable 37415 38410 38487
Taxes payable 3520 3613 3065
Accrued liabilities 16239 16560 17063
Other current liabilities 89
Total current liabilities 69345 65272 64619
Non-current liabilities
Long-term debt 41771 41086 38214
Capital leases 2788 2606 5816
Deferred taxes liabilities 8017 8805 7321
Minority interest 5084 4543 3065
Other long-term liabilities 1491
Total non-current liabilities 59151 57040 54416
Total liabilities 128496 122312 119035
Stockholders' equity
Common stock 323 323 317
Additional paid-in capital 2362 2462 1805
Retained earnings 76566 85777 90021
Accumulated other comprehensive income -2996 -7168 -11597
Total stockholders' equity 76255 81394 80546
Total liabilities and stockholders' equity 204751 203706 199581
INCOME STATEMENT BASE YEAR % CHANGE FOR % CHANGE FOR
Fiscal year ends in January. USD in millions except per share data. 2014-01 2015-01 2015-01 2016-01 2015-01
Revenue 476294 485651 482130
Cost of revenue 358069 365086 360984
Gross profit 118225 120565 121146
Operating expenses
Sales, General and administrative 91353 93418 97041
Total operating expenses 91353 93418 97041
Operating income 26872 27147 24105
Interest Expense 2335 2461 2548
Other income (expense) 119 113 81
Income before income taxes 24656 24799 21638
Provision for income taxes 8105 7985 6558
Minority interest 673 736 386
Other income 673 736 386
Net income from continuing operations 16551 16814 15080
Net income from discontinuing ops 144 285
Other -673 -736 -386
Net income 16022 16363 14694
Net income available to common shareholders 16022 16363 14694
Earnings per share
Basic 4.9 5.07 4.58
Diluted 4.88 5.05 4.57
Weighted average shares outstanding
Basic 3269 3230 3207
Diluted 3283 3243 3217
EBITDA 35861 36433 33640

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Commercial Real Estate Investors Handbook

The Commercial Real Estate Investors Handbook

Authors: Steven D. Fisher

1st Edition

1601380372, 978-1601380371

More Books

Students also viewed these Finance questions

Question

★★★★★
Prepare Budgets single-step income statement for the year ended March 31, 2015. The adjusted trial balance of Budget Business Systems at March 31, 2015,follows: BUDGET BUSINESS SYSTEMS Adjusted Trial...

Answered: 1 week ago

Question

★★★★★
Assume you use the following line of MATLAB code to import experimental data: result = importdata ( ' exp 1 . dat' ) and MATLAB outputs the following: result = struct with fields: data: double ]...

Answered: 1 week ago

Question

★★★★★
A building plot has the shape of a rectangle whose length and width are represented by two variables X and Y. The ranges of these two variables are the intervals RX = [5, 8] and RY = [4, 6]. Let E be...

Answered: 1 week ago

Question

★★★★★
1. Assume you are the CEO of Peerless Products and you are aware of your companys lack of end-to-end supply chain capability. What are some of the high-level adverse impacts on your business that may...

Answered: 1 week ago

Question

★★★★★
TASK: 1. Using the financial statements, perform the calculations for the ratios listed in the "Financial ratios" tab for 3 years. Refer to the chapter for ratio formula. Follow the instructions on...

Answered: 1 week ago

Question

★★★★★
If the net book value of total assets is used as the measure of investment, all of the following may be effective strategies to improve ROI: decreasing idle cash, issuing new debt, determining proper...

Answered: 1 week ago

Question

★★★★★
"Given the characteristics of literature and the hazards of translations, is Republic Act 1425 realistic? Why or why not?"

Answered: 1 week ago

Question

★★★★★
How do you select "goals" in the first body paragraph in the second section, and them hyperlink to then "MAIN GOALS" section in the current document?

Answered: 1 week ago

Question

★★★★★
In a random sample of 400 students of the University of Teaching Department, it was found that 300 students failed in the examination. In another sample of 500 students of the affiliated colleges,...

Answered: 1 week ago

Question

★★★★★
Over the course of a year, the probability that a house in an urban area will be burglarized is 4%. a) If 20 houses are randomly selected, what is the probability that exactly 2 of the houses will be...

Answered: 1 week ago

Question

★★★★★
Identify and briefly discuss the three dimensions on which global competition takes place. 2 paragraphs or 10 sentences.

Answered: 1 week ago

Question

★★★★★
Read the research article by Collinson and Collinson (focus on research 9.1) and discuss which you believe to be the most appropriate of the four different courses of action.

Answered: 1 week ago

Question

★★★★★
Obtain a copy of Honey and Mumfords Learning Style Analysis and identify which grouping indicates your preferred style. Discuss with two of your colleagues how this knowledge will infl uence your...

Answered: 1 week ago

Question

★★★★★
(a) In respect of the Meteor case study, what additional information will Sarah need to enable her to make a balanced judgement on the situation? (b) A meeting has been fi xed between Sarah, June and...

Answered: 1 week ago

Previous Question Next Question