Annual Report Project Walmart

A. Introduction CEO Michael Terry Duke Home Office Walmart Stores Inc, 70 SW !th St, "enton#ille, A$ Description of Company Walmart%s slo&an is 'Sa#e Money, (i#e "etter) so their &oal is to pro#i*e people +ith ,uality &oo*s an* ser#ices, like &roceries, electronics, auto care, an* many more- They can .e /oun* not too /ar /rom any+here Main Geographic Area of Activity Walmart is mainly /oun* in the 0nite* States- The company has *i//erent .ranches like nei&h.orhoo* markets an* supercenters, as +ell as a +arehouse +holesale .ranch 1Sam%s 2lu.3- This results in +ell o#er 4,000 stores nation+i*e Company's Independent Accountants 5rnst 6 7oun& ((P Auditor's Response to Financia !tatements " 5rnst 7oun& ((P .elie#e that the /inancial statements /or the year en*e* 8anuary 9:, 0:: present Walmart%s /inancial position, results o/ operations, an* cash /lo+s /airly in accor*ance +ith ;AAP- This means they *isclose* enou&h in/ormation /or the /inancial statements to .e interprete*, pro#i*e* a reasona.le amount o/ *etail, an* *i*n%t sho+ any si&ns o/ .ias Are the Auditors Responsi# e for Financia !tatements$ % <o, the au*itors are responsi.le /or e=pressin& opinions on the statements .ase* on au*its &hen' (ho is Responsi# e$ % The company%s mana&ement is responsi.le /or preparin& /inancial statements /or au*itin& Recent C osing Mar)et *rice of !toc) % >? -0? 1as o/ 4@:!@ 0: 3 Dividend *er !hare % >:- : per share E+change " <e+ 7ork Stock 5=chan&e 1<7S53

&ic)er !ym#o " WMT

B. Industry Situation and Company Plans Accor*in& to the /inancials /rom the annual report, Walmart Inc- is sho+in& stea*y &ro+th as it shoul* .e, an* &ra*ual increase is on course- It can .e seen that net sales increase* .y :-0A in /iscal 0:0 an* 9-4A in /iscal 0::- Walmart remains at the top o/ the retail in*ustry, an* shoul* remain in the comin& years &rante* they continue pro*ucin& at the current rate- Their o#erall aspiration is to ha#e operatin& e=penses rise at a slo+er rate than that o/ sales as +ell as ha#e operatin& income rise at a /aster rate than that o/ sales- This +ill ena.le them to keep prices lo+ an* maintain a stea*y /lo+ o/ consumersSourcesB +++-+almartstores-com@sites@annualreport@ 0::@/inancials@ 0::CMDA-p*/ +++-+almartstores-com@sites@annualreport@ 0::@/inancials@ 0::CMana&ementCReport-p*/ C. Financial Statements Income !tatement Format " multiDstep /ormat The Income Statements /or the past t+o years sho+ a &ra*ual an* stea*y increase in .usiness, an* the company is success/ul7ear 5n*e* ;ross Pro/it Income /rom Fperations <et Income 8an 9:, 0:: >:0?,E09,000-00 > G,G4 ,000-00 >:?,9!E,000-00 8an 9:, 0: >::,! 9,000-00 > ?,G!!,000-00 >:G,?EE,000-00

,a ance !heet 8an 9:, 0:: >:::,!9 ,000-00 >?!,G4 ,000-00 H >40!,000-00 H 8an 9:, 0: >: :,?!7,000-00 >7:,9:G,000-00 >404,000-00

7ear 5n*e* (ia.ilities Stockhol*ers% 5,uity Misc Stock Fptions Warrants

Assets

>:!0,7! ,000-00

>:E9,40?,000-00

!tatement of Cash F o-s Operations vs. /et Income 75 :@9:@ 0: 2ash Ilo+ /rom Fperations 1> 4, GG,0003 J <et Income 1>:G,?EE,0003 75 :@9:@ 0:: 2ash Ilo+ /rom Fperations 1> 9,?49,0003 J <et Income 1>:?,9!E,0003 Main Investing Activity " 2apital 5=pen*itures Most Important !ource of Financing " Sale Purchase o/ Stock Overa Cash F o- % Irom year en*e* 8an 9:, 0:: to year en*e* 8an 9:, 0: , cash has *ecrease*

SourceB httpB@@/inance-yahoo-com@,KsLWMT D- Accounting Policies Revenue Recognition " Walmart reco&niMes net o/ sales, sales re#enue, estimate* sales returns, an* ta=es +hen it sells the pro*uct to the consumer- Ser#ice transactions are reco&niMe* +hen the ser#ice has .een per/orme* Cash " In#estments +ith a maturity *ate o/ three months or less +hen purchase* are reco&niMe* .y Walmart as cash e,ui#alents- All *e.it car*, cre*it car*, an* 5"T transactions are consi*ere* cash e,ui#alents Merchandise Inventories " Walmart uses the '(astDIn, IirstDFut) 1(IIF3 Metho* o/ retail accountin& .ecause in#entory +ill .e #alue* at the lo+er o/ cost or market- Internationally, Walmart uses IIIF *roperty and E0uipment Depreciation 2osts o/ major impro#ements are capitaliMe*, +hile normal repairs an* maintenance are reco&niMe* as e=pense as incurre*- 5,uipment an* property are *epreciate* usin& a strai&htDline metho*-

Other &opics Receiva# es Capita i1ed Interest 2ong%2ived Assets !e f%Insurance Reserves Income &a+es 2eases Cost of !a es *re%Opening Costs Currency &rans ation Rec assifications and more...

The in/ormation in the /ootnotes *i*n%t really chan&e my opinion o/ the company-

E. Ratio Analysis &ests of 2i0uidity G4,E7G,000@? ,900,000 L 0-!! 1?,GG0,000 H 0 H G,E97,0003@? ,900,000 L 0- 0

2urrent Ratio Nuick Ratio 1Aci* Test3

Asset Management 99G,: 7,000@1140,7:4,000 H 9?,497,0003@ 3 L !-?E !G, ?G,000@11G,E97,000 H G,0!E,0003@ 3 L :G-47

In#entory Turno#er Accounts Recei#a.le Turno#er

&ests of !o vency and E0uity *osition : :,?!7,000@:E9,40?,000 L 0-?9 ?,GG!,000@ ,9 ,000 L ::-44

De.t Ratio TimesDinterestDearne* Ratio

&ests of *rofita#i ity :G,?EE,000@!G, ?G,000 L :!-4:A 1:G,?EE,000 H ,9 ,0003@11:E9,40?,000 H :!0,7! ,0003@ 3 L E-?A 1:G,?EE,000 03@117:,9:G,000 H ?!,G4 ,0003@ 3 L -4GA 1:G,?EE,000 03@94 ,000 L >4G-E0

Return on <et Sales Return on Total Assets Return on 2ommon Stockhol*ers% 5,uity 5arnin&s Per Share o/ 2ommon Stock

Mar)et Ana ysis ? -0?@4-G L :9-79 :-GE@? -0? L -G?A

Price@5arnin&s Ratio Di#i*en* 7iel* Ratio

F. Conclusion

Accor*in& to the ratios an* analysis o/ the annual report, it +oul* .e a &oo* *ecision to in#est in this company an* .uy its common stock- The num.ers an* ratios all sho+ that Walmart is *oin& +ell, an* it is continuously *oin& .etter than the year .e/ore- Walmart%s *e.t &ro+s much slo+er than its re#enue an* continues to *o so- Irom analyMin& Walmart%s recent stock history, +e can see that the stocks ha* /ell a couple months .ack keepin& stockhol*ers on the e*&e o/ their seats an* *roppin& the stock nearly 4A- "ut Walmart ,uickly reco#ere* /rom the /all an* is on its +ay up the stock la**er, makin& it the per/ect time to in#est +hile the price is still lo+er than it +ill .e in a couple +eeks- With

the recent a**ition o/ Walmart-com, the company +ill see re#enue .e&in to .uil*- We hear stories on the ne+s these *ays o/ "est "uy &oin& out o/ .usiness an* losin& to mainly online competitors like AmaMon- "ut one o/ the companies at the /ore/ront o/ the online ca#alry is Walmart an* the results are .e&innin& to sho+A -?GA yiel* is pretty nice in the eye o/ the sharehol*er, an* the price o/ the stock +ill continue to clim.- It coul* approach the >70 mark like it *i* nearly a *eca*e a&o- So, /rom an in#estor%s stan*point, the smart choice +oul* .e to .uy-