Financial Statement Review
What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors?
For FY15 the total consolidated income for Walmart is $17,099 million. In FY14 Walmart recorded a loss from FY13, but is showing an increase with $16,695 million in FY14 to FY15. Page 38 of the Annual Financial Report shows these figures along with many other figures. Investors look at the Annual Financial Report to see how stable a company is financially. If the company was consistently showing a loss an investor would most likely shy away from investing within the company unless there was a clear strategy set to rebound the company into prosperity.
What is the ending balance in stockholders’ equity? Why would a labor union potentially be interested in this information?
Stockholders’ equity was recorded at $323 million for the ending balance. Page 40 of the Annual Financial Report will substantiate this claim. Salaries, benefits and negotiating power can analyzed by a labor union using these figures. The larger the Stockholders equity and the net income of the company is shows a labor union that they could be paying employees more while continuing to turn a hefty profit.
What is the total value of assets? Why would this information be important to a potential creditor?
The total value of assets was recorded at $101,381 million. This figure can be found on page 60 of the Annual Financial Report. Creditors would want to know this figure because it shows that the company has assets to liquidate in order to pay debt if they needed too. Creditors would also be interested in the net income of the business over the last few FYs to determine whether they would want to lend the company money.
What is the total cash flow from operation?
Page 41 on the Annual Financial Report shows the recorded total cash flow, which was $17,099 million.
What financial