Walmart Inc. Consolidated Statements of Income Income Statements Original Y 2022 2022-01-31 Y 2021 2021-01-31 Y 2020 2020-01-31 Income Statement Horizontal Growth Rate Y 2019 2019-01-31 Y 2018 2018-01-31 Y 2017 2017-01-31 Y 2022 2022-01-31 Y 2021 2021-01-31 Y 2020 2020-01-31 Y 2019 2019-01-31 Y 2018 2018-01-31 Y 2022 2022-01-31 Income Statement Y 2021 2021-01-31 Common Size Analysis Y 2020 2020-01-31 Y 2019 2019-01-31 Y 2018 2018-01-31 on Revenues: Net sales Membership and other income Total revenues Costs and expenses: Cost of sales Operating, selling, general and administrative expenses Operating income Interest: Debt Finance, capital lease and financing obligations Interest income Interest, net Loss on extinguishment of debt Other (gains) and losses Income before income taxes $567,762,000,000 $555,233,000,000 $519,926,000,000 $510,329,000,000 $495,761,000,000 $4,992,000,000 $3,918,000,000 $4,038,000,000 $4,076,000,000 $4,582,000,000 $572,754,000,000 $559,151,000,000 $523,964,000,000 $514,405,000,000 $500,343,000,000 $429,000,000,000 $420,315,000,000 $394,605,000,000 $385,301,000,000 $373,396,000,000 $117,812,000,000 $116,288,000,000 $108,791,000,000 $107,147,000,000 $106,510,000,000 $25,942,000,000 $22,548,000,000 $20,568,000,000 $21,957,000,000 $20,437,000,000 $1,674,000,000 $1,976,000,000 $2,262,000,000 $1,975,000,000 $1,978,000,000 $320,000,000 $339,000,000 $337,000,000 $371,000,000 $352,000,000 ($158,000,000) ($121,000,000) ($189,000,000) ($217,000,000) ($152,000,000) $1,836,000,000 $2,194,000,000 $2,410,000,000 $2,129,000,000 $2,178,000,000 $2,410,000,000 $3,000,000,000 ($210,000,000) ($1,958,000,000) $8,368,000,000 $18,696,000,000 $20,564,000,000 $20,116,000,000 $11,460,000,000 $4.756,000,000 $6,858,000,000 $4,915,000,000 $4,281,000,000 $13,940,000,000 $13,706,000,000 $15,201,000,000 $7,179,000,000 Consolidated net income attributable to noncontrolling interes ($267,000,000) ($196,000,000) ($320,000,000) ($509,000,000) Consolidated net income attributable to Walmart Provision for income taxes Consolidated net income Net income per common share: $481,317,000,000 $4,556,000,000 $485,873,000,000 $361,256,000,000 $101,853,000,000 $22,764,000,000 $2,044,000,000 $323,000,000 ($100,000,000) $2,267,000,000 $3,136,000,000 $15,123,000,000 $4,600,000,000 $10,523,000,000 $20,497,000,000 $6,204,000,000 $14,293,000,000 1.0 $13,673,000,000 $13,510,000,000 $14,881,000,000 $6,670,000,000 ($661,000,000) $9,862,000,000 ($650,000,000) $13,643,000,000 Basic net income per common share attributable to Walmart Diluted net income per common share attributable to Walma Weighted-average common shares outstanding: $4.90 $4.87 $4.77 $5.22 $4.75 $5.19 $2.28 $2.26 $3.29 $3.28 $4.40 or $4.38 Basic (in shares) 2,792,000,000 Diluted (in shares) Dividends declared per common share (in USD per share) 2,805,000,000 $2.20 2,831,000,000 2,847,000,000 $2.16 2,850,000,000 2,868,000,000 $2.12 2,929,000,000 2,945,000,000 $2.08 2,995,000,000 3,010,000,000 $2.04 3,101,000,000 3,112,000,000 $2.00 In 1. 2. 3. 4. 5. 6. In the group project folder, you will find the excel spread sheet that contains comparative financial statements for Walmart.com for the past six years. Apply horizontal (growth rate) analysis over the last year's number for important items in the shaded area on the Income Statement and the Balance Sheet. For vertical analysis, construct the common-size income statement and common-size balance sheet by expressing each item in the shaded area on the Income Statement and the Balance Sheet as a percentage of a relevant total within the same year. In the ratio analysis sheet, calculate financial ratios for the latest 5 years. The ratios are grouped into four categories: a. Profitability Ratios: Gross Margin, Profit Margin, ROA, ROE b. Liquidity and Efficiency Ratios: Current Ratio, Quick Ratio, A/R turnover, Inventory turnover, Total Assets Turnover c. Solvency Ratios: Debt to Equity Ratio, Times Interest Earned d. Market Oriented Ratios: Price-Earnings Ratio, Dividend Yield Based on the calculations from above, provide a summary of findings. a. Are there any trends discovered from the horizontal analysis? What do these trends imply about the business operations for Walmart. b. Identify the significant change from the vertical analysis. What does the change imply on business operations and what are the economic reasons that lead to the change? c. From the ratio analysis, interpret the trend of the ratio change as good and bad and the implication on business operations. Based on the financial performance, indicate if the company is worthwhile for a long-term investment. Revenues: Walmart Inc. Consolidated Statements of Income Income Statements Original Y 2022 2022-01-31 Y 2021 2021-01-31 Y 2020 2020-01-31 Y 2019 2019-01-31 Y 2018 Y 2017 2018-01-31 2017-01-31 Membership and other income Net sales Total revenues Costs and expenses: Cost of sales Operating selling general and administrative expenses Operating income Interest Debt $567,762,000,000 $555,233,000,000 $519,926,000,000 $510,329,000,000 $495,761,000,000 $481,317,000,000 $4.556.000.000 $4.992.000.000 $3.918.000.000 $4,038.000.000 $4,076.000.000 $4.582.000.000 $572,754,000,000 $559,151,000,000 $523,964,000,000 $514,405,000,000 $500,343,000,000 $485,873,000,000 $429,000,000,000 $420,315,000,000 $394,605,000,000 $385,301,000,000 $373,396,000,000 $361,256,000,000 $117.812.000.000 $116.288.000.000, $108.791.000.000. $107.147.000.000 $106.510.000.000 $101.853.000.000 $25,942,000,000 $22,548,000,000 $20,568,000,000 $21,957,000,000 $20,437,000,000 $22,764,000,000 Finance, capital lease and financing obligations Interest income Interest, net Loss on extinguishment of debt Other (gains) and losses Income before income taxes Provision for income taxes Consolidated net income Consolidated net income attributable to noncontrolling intere: ($267.000.000 Consolidated net income attributable to Walmart $13,673,000,000 $13,510,000,000 $320.000.000) $14,881,000,000 $1,674,000,000 $1,976,000,000 $2,262,000,000 $1,975,000,000 $1,978,000,000 $320,000,000 $339,000,000 $337,000,000 $371,000,000 $352,000,000 (5158.000.000) 15121.000.0001 ($189.000.000) (5217.000.0001 (5152.000.000) $1,836,000,000 $2,194,000,000 $2,410,000,000 $2,129,000,000 $2,178,000,000 $2,410,000,000 $3,136,000,000 $3.000.000.000. ($210.000.000) ($1.958.000.000) $8.368.000.000. $18,696,000,000 $20,564,000,000 $20,116,000,000 $11,460,000,000 $15,123,000,000 $4.756,000,000 $6.858.000.000 $4.915.000.000 $4.281.000.000. $4.600.000.000 $13,940,000,000 $13,706,000,000 $15,201,000,000 $196.000.000) $2,044,000,000 $323,000,000 15100.000.000 $2,267,000,000 $20,497,000,000 $6.204.000.000 $7,179,000,000 $10,523,000,000 (5509.000.000) $6,670,000,000 $14,293,000,000 (5.661.000.000) $9,862,000,000 (5650.000.000 $13,643,000,000 Net income per common share: Basic net income per common share attributable to Walmart Diluted net income per common share attributable to Walma $4.90 $4.77 $5.22 $2.28 $4.87 $4.75 55.19 $2.26 $3.29 53.28 $4.40 $4.38 Weighted-average common shares outstanding Basic (in shares) 2,792,000,000 Diluted (in shares) 2,805,000,000 Dividends declared per common share (in USD per share) $2.20 2,831,000,000 2,847,000,000 $2.16 2,850,000,000 2,868,000,000 $2.12 2,929,000,000 2,945,000,000 $2.08 2,995,000,000 3,010,000,000 $2.04 3,101,000,000 3,112,000,000 $2.00