American Corporation Analysis
American Corporation Analysis
ACC/561
September 19, 2013
Mr. Ponteja
American Corporation Analysis
Wal-Mart is one of the biggest retailers not only in the United States, but also internationally. The corporation was founded in Arkansas by Sam Walton in 1962 and has grown to produce revenue of over $460 billion while employing 2.2 million employees (Seeking Alpha, 2013). Wal-Mart is known for the low cost structure and has succeeded in the retail market. Although the corporation has been successful, there are many competitors in the retail industry that could be considered a threat for Wal-Mart. To help Wal-Mart maintain its sustainability, a corporation analysis can be performed to measure profitability and liquidity through a comparative and ration analysis.
Comparative Analysis of Wal-Mart: Horizontal & Vertical Analysis Charts Comparative-Horizontal Analysis
Wal-Mart
Net Sales (in millions)
Base Period 2008
Annual Data (12 Months ended in January)
2013
2012
2011
2010
2009
2008
Net Sales
466,114
443,854
418,952
405,046
401,244
374,526
Percentage Increase
124.5%
118.5%
111.9%
108.2%
107.2%
100%
Amount
91,588
69,328
44,426
30,520
26,718
-
Source: EBIT Financial Analyses Center 2013
The data analyzed using the comparative-horizontal analysis is the net sales for Wal-Mart. It is assumed that 2008 is the base year to calculate the horizontal analysis. Based on the previous data it is analyzed we can determine that net sales for Wal-Mart increased approximately 7.2% [($401,244 – $374,526) ÷ $374,526] from 2008 to 2009. Similarly, we can determine that there was an increase in net sales of approximately 24.5% [($466,114 – $374,526) ÷ $374,526 from 2008 to 2013. There has been a significant increase in net sales in the past several years. According to Forbes, Wal-Mart Company runs in three segments; Wal-Mart U.S., International Wal-Mart, and Sam’s Club. Wal-Mart U.S., accounted for approximately
ACC/561
September 19, 2013
Mr. Ponteja
American Corporation Analysis
Wal-Mart is one of the biggest retailers not only in the United States, but also internationally. The corporation was founded in Arkansas by Sam Walton in 1962 and has grown to produce revenue of over $460 billion while employing 2.2 million employees (Seeking Alpha, 2013). Wal-Mart is known for the low cost structure and has succeeded in the retail market. Although the corporation has been successful, there are many competitors in the retail industry that could be considered a threat for Wal-Mart. To help Wal-Mart maintain its sustainability, a corporation analysis can be performed to measure profitability and liquidity through a comparative and ration analysis.
Comparative Analysis of Wal-Mart: Horizontal & Vertical Analysis Charts Comparative-Horizontal Analysis
Wal-Mart
Net Sales (in millions)
Base Period 2008
Annual Data (12 Months ended in January)
2013
2012
2011
2010
2009
2008
Net Sales
466,114
443,854
418,952
405,046
401,244
374,526
Percentage Increase
124.5%
118.5%
111.9%
108.2%
107.2%
100%
Amount
91,588
69,328
44,426
30,520
26,718
-
Source: EBIT Financial Analyses Center 2013
The data analyzed using the comparative-horizontal analysis is the net sales for Wal-Mart. It is assumed that 2008 is the base year to calculate the horizontal analysis. Based on the previous data it is analyzed we can determine that net sales for Wal-Mart increased approximately 7.2% [($401,244 – $374,526) ÷ $374,526] from 2008 to 2009. Similarly, we can determine that there was an increase in net sales of approximately 24.5% [($466,114 – $374,526) ÷ $374,526 from 2008 to 2013. There has been a significant increase in net sales in the past several years. According to Forbes, Wal-Mart Company runs in three segments; Wal-Mart U.S., International Wal-Mart, and Sam’s Club. Wal-Mart U.S., accounted for approximately
References: Forbes. (2013, September). Wal-Mart Stores. Retrieved from http://www.forbes.com/companies/wal-mart-stores/ Kimmel, P.D., Weygandt, J.J., & Kieso, D.E. (2010). Accounting: Tools for Business Decision Making (4th ed.). : John Wiley & Sons, Inc. . Seeking Alpha. (2013, May 29). Wal-Mart Stores Inc. Stock Analysis 2013. Retrieved September 16, 2013, from Seeking Alpha: http://seekingalpha.com/article/1466131-wal-mart-stores-inc-stock-analysis-2013 Stock Analysis on Net. (2013, September). Wal-Mart Stores Inc. Income Statement. Retrieved from http://www.stock-analysis-on.net/NYSE/Company/Wal-Mart-Stores-Inc/Financial-Statement/Income-Statement Stock Analysis on Net. (2013, September). Wal-Mart Stores Inc. | Short-term (Operating) Activity Analysis. Retrieved from http://www.stock-analysis-on.net/NYSE/Company/Wal-Mart-Stores-Inc/Ratios/Short-term-Operating-Activity#Inverntory-Turnover Walmart Corporate - Annual Reports . (2013). Retrieved from http://stock.walmart.com/annual- Reports Wal-Mart Financials. (2012, April). Five-Year Financial Summary. Retrieved from http://www.walmartstores.com/sites/annual-report/2012/WalMart_Financials.pdf