Preview

(Wal-Mart) Global Environments

Better Essays
Open Document
Open Document
2438 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
(Wal-Mart) Global Environments
(Wal-Mart) Global Environments
Study Name
COURSE
Date
Professor

Wal-Mart Global Environment
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.
How are the corporation’s debt securities reported on the financial statements?
As defined by Investopedia “Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount borrowed), interest rate and maturity/renewal date. Debt securities include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, collateralized securities (such as CDOs, CMOs, GNMAs) and zero-coupon securities.
The interest rate on a debt security is largely determined by the perceived repayment ability of the borrower; higher risks of payment default almost always lead to higher interest rates to borrow capital.” The statement of cash flow defines the financial activities during a reporting period for a company. The cash flow statement will define the interest, sale of debt or securities or the purchase of debt or securities with the exception of investments and financing activities that do not require the use of cash.
Wal-Mart has an AA credit rating (2012



References: Anderson, K. (2006). Globalization and the Wal-Mart Effect. Retrieved from http://www.probe.org/site/c.fdKEIMNsEoG/b.4218005/k.783A/Globalization_and_the_ WalMart_Effect.htm Investopedia Cash Flow

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The cash flow statement shows every transaction that has occurred as it happens with in the organization. This statement shows the amount of cash coming in and the cash paid out to other services. This cash flow statement shows a breakdown of the organizations financial statement to show what has occurred in a certain amount of time. For example, you can see the income and expenses for either a month or a year. The cash flow statement generally assesses a business’s financial health. This statement can help investors if they are planning to invest in this business, and to…

    • 374 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    xacc 291 week 7

    • 391 Words
    • 2 Pages

    The term cash flows refer to the receipts and payment of cash. A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents is known as a statement of cash flow. Similar to an income statement, a cash flow statement records a company’s performance over a period of time. Consistently, companies will disclose the cash arising are generally required to prepare a statement of cash flow in their annual reports because it contains vital information for lenders and investors who primarily make informed and economic decisions about the companies. Generally during a company’s accounting period their cash flow is categorized and divided into three sections which are: cash flow from operations, financing and investing. The primary reasons these transactions are catergorized and divided is so investors will understand what the transactions are related to and how each section paints a vivid picture of how the company is doing from both a cash standpoint and overall health. The statement of cash flow is very important for companies that are required to prepare and present their financial statement in accordance to with international accounting standards and international financial reporting standards.…

    • 391 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    adm3351 week1 notes

    • 2079 Words
    • 5 Pages

    INTRODUCTION This introductory chapter will focus on the fundamental features of bond, the type of issuers, and risk faced by investors in fixed-income securities. Bond A bond is a debt instrument requiring the issuer to repay to the lender the amount borrowed plus interest over a specified period of time. A typical (plain vanilla) bond issued in the United States specifies A fixed date when the amount borrowed (the principal) is due, called the maturity date. The contractual amount of interest, which typically is paid every six months. Assuming that the issuer does not default or redeem the issue prior to the maturity date, an investor holding this bond until the maturity date is assured of a known cash flow pattern. SECTORS OF THE U.S. BOND MARKET The U.S. bond market is divided into six sectors U.S. Treasury sector, agency sector, municipal sector, corporate sector, asset-backed securities, and mortgage sector. The Treasury Sector The Treasury sector includes securities issued by the U.S. government. These securities include Treasury bills, notes, and bonds. This sector plays a key role in the valuation of securities and the determination of interest rates throughout the world. The Agency Sector The agency sector includes securities issued by federally related institutions and government-sponsored enterprises. The securities issued are not backed by any collateral and are referred to as agency debenture securities. The Municipal Sector The municipal sector is where state and local governments and their authorities raise funds. Bonds issued in this sector typically are exempt from federal income taxes. The Corporate Sector The corporate sector includes (i) securities issued by U.S. corporations and (ii) securities issued in the United States by foreign corporations. Issuers in the corporate sector issue bonds, medium-term notes, structured notes, and commercial paper. The corporate sector is divided into the investment grade and noninvestment grade…

    • 2079 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Acc/291 Weekly Reflection

    • 305 Words
    • 2 Pages

    The statement of cash flow is one of the main financial statements which investors rely on to measure a company’s financial strength. Some investors are very much interested in this statement because they absolutely want returns on their investment. The cash flow statement identifies the cash is flowing in and out of the company. If a company is consistently generating more cash than it is using, the company will be able to increase its dividends, reduce debt, and acquire other businesses. All of this is perceived to be good for investors.…

    • 305 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Telus Valuation Summary

    • 4912 Words
    • 20 Pages

    Cash flow analysis is a method of analyzing the financing, investing, and operating activities of a company. The primary goal of cash flow analysis is to identify, in a timely manner, cash flow problems as well as cash flow opportunities. The primary document used in cash flow analysis is the cash flow statement. The cash flow statement is useful to managers, lenders, and investors because it translates the earnings reported on the income statement—which are subject to reporting regulations and accounting decisions—into a simple summary of how much cash the company has generated during the period in question.…

    • 4912 Words
    • 20 Pages
    Powerful Essays
  • Satisfactory Essays

    A direct statement of cash flow reports a company 's sources and use of cash. The statement has three sections that report cash receipts and cash payments; operating, investing and financing activities. Operating activities include receipts and payments from normal business operations while investing activities include the purchase or sale of long-term asset and investments. Financing activities relate to making payments to creditors and investors.…

    • 350 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Statement of Cash Flows

    • 725 Words
    • 3 Pages

    In financial accounting, a cash flow statement or statement of cash flows is a financial statement that shows a company's incoming and outgoing money (sources and uses of cash) during a time period (often monthly or quarterly and also yearly). The statement shows how changes in balance sheet and income accounts affected cash and cash equivalents, and breaks the analysis down according to operating, investing, and financing activities.…

    • 725 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Statement of Cash Flows

    • 726 Words
    • 3 Pages

    The statement of cash flows serves multiple purposes. One is providing information about a company’s cash payments and receipts during a given period. A second purpose is to provide cash-basis information about the company’s operating, financing, and investing activities. Its format reconciles the beginning and ending cash balances for the period (Kieso, Weygandt & Warfield, 2007). The operating activities involve the cash effects of transactions that enter into the determination of net income, such as cash payments to employers and suppliers for acquisitions of expenses and inventory and also, the cash receipts from sales of goods or services.…

    • 726 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Statement of Cash Flows

    • 1199 Words
    • 5 Pages

    To fully understand the Statement of Cash Flows one must know the definition of it and what it in fact means. The Statement of Cash Flows is a change statement summarizing the transactions that caused cash to change during the period (Spiceland, 2007). In know this it is easier to understand why the Statement of Cash Flows and its purpose is to provide information about the cash receipts and cash disbursements of an enterprise that occurred during a period. Thus the statement will provide valuable information about the operating, investing, and financing activities that occurred during the period as well. Below is an example of a Statement of cash flows:…

    • 1199 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    The cash flow statement reports on a company's cash flow activities, particularly its operating, investing and financing activities.…

    • 2442 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    An investment advisor of a brokerage firm Sabrina Gupta was studying stocks and valuation of Wal Mart Stores Inc. Wal Mart founded by Sam Walton was the one of world’s largest retailer store operating in all 50 states and internationally in many countries. The immensity of Wal Mart operations can be estimated by the fact that it had 2.1 million employees who served around 200 million customers per week. The purpose of Gupta’s assessment and valuation of Wal Mart stocks was to determine whether she should urge her new and existing clients to incorporate these stocks in their portfolio.…

    • 252 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Introduction I would like to begin stating the reason why I decided to choose this case and, above all, this topic. Since the beginning of my academic career field I’ve always found more interesting the “human” side of business sciences, especially those concerning the behavior of organizations in the environment in which they operate and consequentially of the people that materially make them work. This because organizations are “living structures” created by men in order to reduce the uncertainty typical of every “open system” like the real world, as opposed to what scholars call “closed system” to indicate an environment where all the variables are controllable or at least predictable (Thompson, 1967). So the reason that led this choice was not that the case itself (even if Wal-Mart still represents one of the most successful firms in the world) but the more general organizational change behind it and the question common to probably every firm: why do organizations change and what is the best solution possible? Wal-Mart Despite being one of the biggest multinational retailer corporation in the world for revenues (446.950 billion $ in 2012) and employees (2.2 million as of 2012), WalMart remains a family owned business since its foundation in 1962 by Sam Walton, and even after his death members of the family keep on having key places inside the company: one bright example is Robson Walton, eldest son of Sam and Chairman of the company at the present date since 1992. The success of the firm is mainly due to an aggressive cost leadership strategy (Porter, 1980) that ensured the company with a huge competitive advantage, but that has not been completely free from critics: low specialized labor force and the exploitation of the “arbitrage” offered by countries such as China are a few examples. The company was even accused of child labor exploitation. Being…

    • 1282 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    5. The statement of cash flows shows how much the firm’s cash—the total of currency, bank deposits, and short-term liquid securities (or cash equivalents)—increased or decreased during a given year.…

    • 859 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The statement of cash flow is important to an organization’s financial management. The statement helps to understand the breakdown’s of all transactions that comes in and that goes out of the organization. If there are differences in the organization transactions, that when the statement comes into play, making everything much clearer to…

    • 299 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Cash flow statement:Complementing the balance sheet and income statement, the cash flow statement (CFS), records the amounts of cash and cash equivalents entering and leaving a company. A positive cash flow is essential to a businesses ability to survive and prosper. The CFS allows investors to understand how a company 's operations are running, where its money is coming from, and how it is being spent.…

    • 2137 Words
    • 7 Pages
    Powerful Essays