WAL MART STORES INC - Financial Analysis Project

Instructions

The Financial Analysis project will be completed in your existing groups.

Each person in the group needs to participate, and respond to equally divided number of questions amongst the group members (16 questions total)

The group will then meet together, analyze, discuss and verify the accuracy of each others work, and combine all answers on one paper.

The final paper should have responses to all 16 questions (2-3 pages), with 1-2 sentences to questions asking for your interpretation and analysis of ratios.

Important: Do not write paragraphs or in essay format. Number your responses for each questions, show how you computed the ratio; highlight, bold, or box the final answer and write your response/analysis below each computation when applicable.

Accessing the Financial Statements

-Go the SEC.gov

- Scroll down to Edgar search box, and type company name.

- Look for most recent 10-K (Annual Financial Statements) filing

-Click on Interactive Data link, and use left column to browse for data as needed

-Click on Financial Statements and use the following:

Income Statement use Consolidated Statements of Operations

Balance Sheet use Consolidated Balance Sheets

Retained Earnings use Consolidated Statement of Stockholders Equity

Cash Flow Statement use Consolidated Statements of Cash Flows

-Click on Notes to Financial Statements and Accounting Policies for all other non-financial information, such as methods of Inventory costing, Depreciation, Bad Debt estimation, product segment data, etc.

Analysis Questions

Profitability questions

Calculate the Gross Profit rate for 2015, 2016 and 2017? What trend do you see and what does it mean?

Gross Profit Rate

2015: 117,143/482,229 = 24.3%

2016: 117,630/478,614 = 24.6%

2017: 120,061/481,317 = 24.9%

*still need to input the trend*

Calculate the Profit Margin rate for 2015, 2016, and 2017? What trend do you see? How does it compare to Gross Profit rate over the years?

Profit Margin

2015: 17,099/482,229 = 3.5%

2016: 15,080/482,130 = 3.1%

2017: 14,293/485,873 = 2.9%

*still need to input the trend and comparison*

What segments (locations) make up total revenues? Which ones are growing in sales, which are declining? (see Notes to Financial Stmts Business Segment Data)

Walmart U.S., Walmart International, and Sams Club make up total revenues. Walmart U.S. is growing, International is declining, and Sams Club is unstable

Calculate the Return on Assets and Return on Equity (Common stock) for 2017. What do the rates tell about companys returns?

Return on Assets in 2017: 14,293/199,203 = 7.2%

Return on Equity in 2017: (14,293 6,216)/82,073 = 9.8%

*still need to input rates on co. returns*

Calculate the Earnings Per Share for 2016 and 2017. How do the two years compare?

Liquidity questions

Calculate the Current Ratio for 2016 & 2017. What does it indicate and what trend do you see?

Calculate the Inventory Turnover and Days Sale in Inventory for 2017. What do they tell about Inventory management?

Which method of Inventory and Cost of Goods Sold valuing does the company use? (FIFO, LIFO or Average) (see Notes to Financial Stmts Accounting policies)? How does used the method effect the Net Income compared to other methods?

Calculate Accounts Receivable Turnover and Collection days for 2017. What does it tell about companys collections?

How much was Allowance for Doubtful Accounts for 2017?

How does the company estimate allowances for Bad Debt? (see Notes to Financial Stmts)

Solvency Ratios

Calculate the Debt to Asset ratio for 2016 and 2017. What does it tell about the long term survival of the company?

What is the companys percentage of PPE (Plant Assets) against total assets? What method of depreciation does the company use? (see Accounting Policies)

Did the company purchase Treasury shares in 2017? If yes, how much and how many shares?

Did the company issue Dividends in 2017? If yes, for how much?

Calculate the Free Cash Flow ratio for 2017. What does it indicate?

How would you interpret the companys cash flows from Operating, Financing, and Investing sections?

Document And Entity Information - USD ($)	12 Months Ended
	Jan. 31, 2017	Mar. 29, 2017	Jul. 29, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	WAL MART STORES INC
Entity Central Index Key	104,169
Current Fiscal Year End Date	--01-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Period End Date	Jan. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		3,033,009,079
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 108,531,045,541