Week 5 Assignment Final Paper
Wal-Mart Financial Analysis Report
Michael Thomas
ACC205: Principles of Accounting Instructor: Mark Stricklett
November 10, 2014
Wal-Mart Financial Analysis Report In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial figures from the income statement which details monthly earnings as well as the company’s liabilities and equity position, and even project future yearly budgets. After looking into several companies, I decided to research Wal-Mart because this store intrigued me from a financial standpoint and my family shops there very frequently. In addition, I really wanted to know where this giant corporation stood financially. As I evaluate Wal-Mart’s financial documents I will exemplify and explain the importance of the horizontal analysis using detailed gauges taken from Wal-Mart’s previous past two years of yearly financial records. I will hone in on Wal-Mart’s last two years, Current Ratio, Quick Ratio, Cash to Current Liabilities Ratio, and lastly I will investigate Wal-Mart’s net liquidity potential. For my final examination I will communicate my thoughts and investment suggestions for potential future investors who want to be stockholders in Wal-Mart. The first of many things that pondered me was how this huge corporation emerged. Well in the year 1969 a gentleman by the name of Sam Walton had opened several Wal-mart chains. Now this small chain of Wal-marts from 1969 has expanded globally to over eleven thousand stores around the
Michael Thomas
ACC205: Principles of Accounting Instructor: Mark Stricklett
November 10, 2014
Wal-Mart Financial Analysis Report In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial figures from the income statement which details monthly earnings as well as the company’s liabilities and equity position, and even project future yearly budgets. After looking into several companies, I decided to research Wal-Mart because this store intrigued me from a financial standpoint and my family shops there very frequently. In addition, I really wanted to know where this giant corporation stood financially. As I evaluate Wal-Mart’s financial documents I will exemplify and explain the importance of the horizontal analysis using detailed gauges taken from Wal-Mart’s previous past two years of yearly financial records. I will hone in on Wal-Mart’s last two years, Current Ratio, Quick Ratio, Cash to Current Liabilities Ratio, and lastly I will investigate Wal-Mart’s net liquidity potential. For my final examination I will communicate my thoughts and investment suggestions for potential future investors who want to be stockholders in Wal-Mart. The first of many things that pondered me was how this huge corporation emerged. Well in the year 1969 a gentleman by the name of Sam Walton had opened several Wal-mart chains. Now this small chain of Wal-marts from 1969 has expanded globally to over eleven thousand stores around the
References: Anonymous, (2012) Wal-Mart Web Site, Retrieved from: http://corporate.walmart.com/ Anonymous, (2012) Seeking Alpha, Why Wal-Mart Beats Its Competitors, Retrieved from: http://seekingalpha.com/article/562821-why-wal-mart-beats-its-competitors Perr, J. (2012) Daily Kos, Wal-Mart Owners Look to Slash Federal tax Payments, Retrieved from: http://www.dailykos.com/story/2012/11/21/1163884/-Wal-Mart-owners-look-to-slash-federal-tax-payments# Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume I. San Diego, CA: Bridgepoint Education, Inc. Anonymous, (2012) Wal-Mart Web Site, Retrieved from: http://corporate.walmart.com/