Preview

Analysis of Walmart Finances++

Powerful Essays
Open Document
Open Document
3933 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Analysis of Walmart Finances++
Financial Analysis of Wal-Mart
By

Submitted January 16, 2013
To
Dr. Boniface Madu
Fin504

Abstract: Wal-Mart is the biggest family owned business on the Fortune 500 list of publically traded companies. This paper will explain the overall financial health of Wal-Mart Stores, Inc. This company has profits in the billions. There will be a look into its current market sales and net profit as well as looking at the past few years (dating back to 2009). This paper will also look at the financial health of some of its competitors. There will be a conclusion made based on Wal-Mart Stores own published financial analysis as to the health of this mega-discount giant. There are graphs and charts that will indicate the three parts of the financial analysis as well as some insights of the company’s such as Target and Costco, which are Wal-Mart’s biggest competitors.
Introduction
This is an analysis that will be conducted on Wal-Mart Stores, Inc., a fortune 500 company and the largest discount retailer. Wal-Mart was established in 1962 by Sam Walton. From its beginnings in Arkansas, it has expanded to all 50 states plus Puerto Rico, as well as other countries worldwide. It is the largest family owned business, and employs over 2 million people. Wal-Mart operates under 3 different entities: Wal-Mart US, Wal-Mart International, and Sam’s Club. This company continues to be more successful as time goes by. They are a leader in the market, which surpasses any other competitors in which the closest being Target, the others include Costco, Dollar General, and Dollar Tree. This analysis will prove that Wal-Mart will continue to surpass any and all competitors in the future as proven by their past performances which have increased year by year. There are various sources that were used in determination of the future health of Wal-Mart. Data used from the company itself, internet sources, and journal articles provided supporting evidence. There are also graphs


References: Cassicio, W. F. (2006). Decency Means More Than “Always Low Prices: A comparison of Costco to Wal-Mart’s Sam’s Club. Academy of Management Perspectives (3).26 http://educ.jmu.edu/~drakepp/principles/module2/fin_rat.pdf http://finance.yahoo.com/q/bs?s=COST+Balance+Sheet&annual http://www.gurufocus.com/news/131937/longterm-financial-analysis-of-walmart-wmt http://insight.kellogg.northwestern.edu/article/wal_mart_supercenter_versus_the_traditional_supermarket http://www.investopedia.com/terms/ Price War in Aisle 3.” Wall Street Journal, May 27, 2003 Stone, K. E. (2006). Analyzing the Impact of Wal-Mart Supercenters on local food store sales. American Journal of Agricutural Economics, (5), 1296. Doi:102307/4123607 http://www.walmartstores.com/sites/annualreport/2011/financials/2011_financials.pdf
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Eco/365 Week 5 Final Paper Essay Example
    • 1511 Words
    • 6 Pages

    Eco/365 Week 5 Final Paper Essay Example

    The evolution of Wal-mart from the early 1960s to the present day has set a benchmark that few can achieve. Wal-mart executives have been successful nationally as well as globally. The knowledge and expertise in economics have made Wal-mart a global giant. The research completed is the final recommendations by the members of research team C and will address questions regarding global competition and issues of the organizations ability to expand or reduce current operations.…

    • 1511 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    Organizational imapact OI/361
    • 1185 Words
    • 5 Pages

    Organizational imapact OI/361

    Tong, C. H., & Lee, T.(2006). Exploring the cornerstones of Wal-Marts success and competitiveness. Competitiveness Review, 16(2143-149). ProQuest…

    • 1185 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Walmart's Sustainable Core Competencies
    • 155 Words
    • 1 Page

    Walmart's Sustainable Core Competencies

    According to VRIN analysis, Wal-Mart’s work environment and management disciplines are distinguishable. Although at the first view the company’s competencies sound temporary, these competencies form a sustainable core competency for Wal-Mart’s superior profitability. In order for a competing firm or a potential entrant to compete, it requires a very strong financial capability to invest in integrated technology of supply chain and superior logistics system. It is also very difficult for any company in the industry to achieve the large sales volume like Wal-Mart does to have such a bargaining power over suppliers. The structure of the company’s management and communication styles, operation autonomy inside Wal-Mart, and management team though…

    • 155 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Better Essays

    (Wal-Mart) Global Environments
    • 2438 Words
    • 10 Pages

    (Wal-Mart) Global Environments

    Wal-Mart continues to grow its empire by reviewing many factors. These factors include price, production, and composition inputs. Wal-Mart must also analyze if global competition affects Wal-Mart, and if the company should continue, expand, or reduce its current operations to maximize profits. Wal-Mart continues to analyze the effects of government policy, social diversity, and business ethics. For Wal-Mart to make a smart decision, one must begin by reviewing price recommendation. Team “A” also will show how Wal-Mart debt securities reports show on the financial statements, how Wal-Mart invest in stocks and debt securities. The team will go farther and show why Wal-Mart invests in stocks and debt securities, what are Wal-Mart’s relative risks and rewards of equity versus debt securities and what the difference is between equity and debt securities.…

    • 2438 Words
    • 10 Pages
    Better Essays
    Read More
  • Better Essays

    Competitive Strategies and Government Policies Paper on Wal-Mart
    • 1894 Words
    • 8 Pages

    Competitive Strategies and Government Policies Paper on Wal-Mart

    Wal-Mart is a giant of the retailing industry yet is not immune to the pressures of globalized trade, supply, and competition. Wal-Mart’s profit sustainability is always ‘in doubt’ unless it continues to fight off various competitive conglomerates or large size retailers such as Amazon and Target. Mergers on the scale of Wal-Mart are rare yet the marketplace shifts based on the continued expansion of physical and online retailers like Amazon and Amazon’s many partner/provider organizations. To stay ahead of the various operational and governmental threats, Wal-Mart’s focus is on maintaining their low cost…

    • 1894 Words
    • 8 Pages
    Better Essays
    Read More
  • Powerful Essays

    American Corporation Analysis
    • 1414 Words
    • 6 Pages

    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.…

    • 1414 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Wal-Mart Fortune 500 Company
    • 1643 Words
    • 7 Pages

    Wal-Mart Fortune 500 Company

    Wal-Mart is the largest corporation by revenue, according to the 2010, Fortune Global 500. Of course the current economic conditions are affecting Wall-Mart, so the best way to respond is by having a strategy. In this case, the goal of the strategy is to maximize future revenues for Wal-Mart. The mixed result provided by the economic indicators point out that is really important that Wal-Mart keeps at the top of their principles the Every Day Low Price. The US nation is dealing with high unemployment and people are trying to drop their household debts. This means that Wal-Mart needs to keep taking actions in order to reduce costs that can lead to translate to the final price and then maximize their revenues. Consumers also want to maximize their spending. When Americans are dealing with economic pressures, those pressures influence the consumer behavior. The best retail prices and a strong customer relationship will help boost their sales. In addition, Wal-Mart needs to continue being a head in implementing new technologies that in fact can be translated in reducing costs will enhance the whole strategy.…

    • 1643 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Best Essays

    Buss499Assignment5
    • 2940 Words
    • 12 Pages

    Buss499Assignment5

    Wal-Mart has held the title of leading retailer in the world for over two decades. With its cost leadership strategy they have for the most part gone unchallenged by other retailers such as Sears, K-Mart, and JCPenny in the United States but have still failed to take a larger portion of the market share in the global economy. It has its operation in more than 27 countries under 69 different banners with 2.2 million associates worldwide (Walmart Corporate, 2012). This paper will analyze the macro and micro conditions of Wal-Mart using a SWOT analysis and the Porter Five Forces Model and will suggest the opportunities to increase competitiveness and profitability. This paper will also include a communication plan along with the corporate governance mechanism and its effectiveness in the operations of Wal-Mart.…

    • 2940 Words
    • 12 Pages
    Best Essays
    Read More
  • Powerful Essays

    Costco vs. Wal-Mart
    • 1269 Words
    • 6 Pages

    Costco vs. Wal-Mart

    “Save Money, Live Better!” is the slogan of Wal-Mart, it was established in 1962 and it grew by brisk spreading in nations then became the world’s largest corporation and the nation’s leading retailer rapidly. In U.S. retailing industry, with the most market share, Wal-mart is the leading giant and its low price strategy forcing their competitors to charge low price as well. According to one academic study, with two-thirds of Wal-mart stores in rural areas, when Wal-mart enters a market, prices drop by 8 percent in rural areas. This figure shows that Wal-mart took the most market share through diminishes price.…

    • 1269 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Wal-Mart vs. Target Essay Example
    • 3752 Words
    • 15 Pages

    Wal-Mart vs. Target Essay Example

    Wal-Mart and Target are the two largest retail chains in the United States categorized of SIC code 5331 which is the retail-variety group assigned by the SEC. Both American based corporations, they are the two most recognized and successful supercenters of their kind rendering several other smaller companies obsolete. Wal-Mart is the larger of the two and has gained enough resources to quickly spring into international business endeavors and expansion of different segments while Target remains a primarily domestic corporation with just one segment. While both stores serve generally the same purpose, the stores attract different markets and both feel intense competition from one another. While Wal-Mart is much larger in scale, Target is very competitive from a financial standpoint. The following will attempt to analyze both corporations’ finances and give some determinant to which company would be more prosperous for a typical investor based on integral financial information found in the companies’ annual reports and some from other reputable resources.…

    • 3752 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Mba 685 Strategic Audit Paper
    • 4149 Words
    • 17 Pages

    Mba 685 Strategic Audit Paper

    Wal-Mart Stores Incorporated, or Wal-Mart as popularly known, is a publicly traded company. The company has continued to increase its sales income over the period of existence since 1962. Recent financial records revealed that net sales increased from $418.9Billion recorded in 2011 fiscal year to $443. 9 Billion in 2012 fiscal year, representing a percentage growth of 5.63%. A cursory look at the 2012 audited financial statement of Wal-Mart revealed that there was a continue deep in net sales between 2008 and 2010 fiscal year. This continued decline can be attributed to the state…

    • 4149 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Walmart Research Paper
    • 1876 Words
    • 8 Pages

    Walmart Research Paper

    I have chosen Wal-Mart Stores Inc for my final paper topic selection they are also known as WMT on the New York Stock Exchange (NYSE) . I am intrigued with their success but also scared about how dependant I have become with my shopping at their stores. This store is not only a retail giant it is also retail bully that forces other stores to go out of business. Wal-Mart not only specializes in retail items such as clothing, jewelry, lawn, and garden they also have super stores that specialize in pharmacy, groceries, auto repair, and check cashing in addition to the services mentioned above. The only other store that has similar retail items and services is Super K Mart which has seriously declined in retail status over the past 10 years. Wal-Mart offers many services and has found a way not only to be competitive but to be dominate when it comes to cost savings. Their product lines are name brand in most cases and are offered at below retail prices on a regular basis which most stores in their competition range can't compete with. These stores are easily accessible in rural and urban city settings, Wal-Mart has 8,970 stores across the world. This global giant is currently the biggest private employer across the world employing over 2 million people world wide and still growing. This store has a great impact on the US economy it helps boost US consumer spending habits and helps the employment rate. I can’t think of another privately owned company that has this big of an impact on the economy. There are a lot complaints about the low pay rates the company offers to its employees but Wal-Mart is offering jobs when other industries and companies are laying off and putting hiring freezes on new positions. These job opportunities may not pay well but it’s most definitely an alternative to being unemployed with no income. Overall Wal-Mart is a solid company that has a broad business portfolio in investments, social responsibility, and ethics which for the most part…

    • 1876 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Week 5 Final Paper Financial Statemen
    • 1143 Words
    • 12 Pages

    Week 5 Final Paper Financial Statemen

    Walmart’s vision, through Sam Walton, to help customers “save money and live better” began in 1962 in Rogers, Arkansas. It was the desire of Sam Walton to offer “great value and great customer service”. (www.corporate.walmart.com). At the age of 44 Sam Walton opened the first Walmart store after being inspired with his store, Walton’s 5 and 10. (www.corporate.walmart.com) Walmart, with more than 11,000 stores in 27 countries is the largest company in the discount store sector. Walmart went public in 1972 with the symbol WMT listed on the NYSE. Walmart is in the discount retail industry offering everything from food to clothing, electronics to car service, etc. Walmart’s competitors include Target, Dollar General and Costco. For 2014, it appears that Walmart has its work cut out for them with the increase of Dollar General stores. “Over those last five years, Wal-Mart has managed 3.3% annualized revenue growth. Compare that to the near 11% annualized growth that one of Wal-Mart 's biggest competitors, Dollar General (NYSE: DG )” (http://www.fool.com) Target is struggling as well as their to open in the Canadian market did not go through. ”Luckily for Wal-Mart, its chief competitor Target is also struggling. Target has been facing slightly different issues, however. Target mainly operates as a North American retailer,…

    • 1143 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Ethical Issues In Walmart
    • 452 Words
    • 2 Pages

    Ethical Issues In Walmart

    The company selected for the discussion is Wal-Mart. It is recognized to be an American multinational retail corporation that is into hypermarkets, discount department stores and grocery stores enjoying its presence worldwide. The company works well upon customer’s expectations and wishes and draw in favorable response as well. It turns up very much helpful from the standpoint of realizing greater growth and progress as well. There rests great necessity going for understanding the situation and adapting accordingly.…

    • 452 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Analyzing the Financial Statements of the World's Largest Retailer: Wal-Mart
    • 302 Words
    • 2 Pages

    Analyzing the Financial Statements of the World's Largest Retailer: Wal-Mart

    The Wal-Mart case is intended for an introductory or main course on Financial Statement Analysis. It may also be useful within a Corporate Finance/Financial Management course. After a class on financial statements and liquidity, profitability and solvency ratios – and some brief examples discussed by the lecturer – students should be capable of making a financial analysis of Wal-Mart. Students can be asked to make this analysis in class, or to prepare the case outside the classroom, and to present it. Ideally, the case work is conducted in groups of 4 to 6 students, and it typically takes between 1 to 1.5 hours (for the analysis itself – obviously, drafting a written report or presentation is more time consuming). The Wal-Mart case is aimed at both undergraduate and graduate students, and for general management programmes/MBAs as well as finance students – obviously, for the latter group, a much more fine-grained analysis, extensive discussion and adequate linking among various financials and between the numbers and Wal-Mart’s business is required. Evidently, the lecturer should highlight many more details in a class of finance students.…

    • 302 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics