Walmart's Financial Reporting Analysis

Wal-Marts Financial Reporting Analysis
SECTION 1: EXECUTIVE SUMMARY

In this section provide a brief overview of the corporation. Participants are not limited but, at a minimum, should provide the following information: Official name of the corporation Wal-Mart Stores Inc. Location of the corporate headquarters 702 SW 8th Street Bentonville, AR 72716 The state in which the company is incorporated Arizona Company Internet address http://www.walmart.com Stock symbol of the corporation and the exchange on which it is traded WMT Fiscal year-end of the corporation January 31, 2011 Date of the 10-K filing according to the financial statements provided Last Tuesday of March The Companys independent accountant/auditor Wal-Mart's independent accountants are responsible for auditing Wal-Mart's The primary products(s) and/or services (s) of the corporation Wal-Mart is one of the largest chains, which operates in three large segments: The Walmart U.S., the Walmart International, and the Sams Club. In this report we are
focusing mainly on Walmart US. This latter is has a momentous presence in the retail industry, operating throughout the United States. The Walmart U.S segment includes the Companys mass merchant concept under the Walmart or Wal-Mart brand, as well as walmart.com. (Reuters, n.d) Walmart offers various lines of products and services including the following: Retail goods, which consists of a large variety of categories, namely electronics, home furnishing, sporting goods, baby products, and grocery items (Washington, n.d) Photo Services: Walmart makes a photo lab available for customers inside the stores and online. They are provided the possibility to upload their photos via the companys website, or drop them off for developing via a store kiosk (Washington, n.d) Pharmacy: Walmart started pharmacy operations as of 2006. Since then, it has been providing customers with prescriptions, which they could pick-up in-store or be shipped by mail. Walmart has available a catalog of 300 generic medications for no more than four dollars in-store, and ten dollars for a 90-day supply (Washington, n.d) Financial Services: Besides the aforementioned products and services, Walmart also provides its customers with a wide range of financial services, namely a non-annual-fee credit card, a debit card ready to obtain in-strore or online, money transfer service through MoneyGram, and check cashing and check printing. At Walmart, customers can also purchase money orders, gift cards, and pays bills (Washington, n.d)
Wireless Services: Last but not least, Walmart partnered with T-mobile only to give birth to The Walmart Family Talk Wireless, which is a service that provides customers with a family plan for unlimited text and voice calls (Washington, n.d)
SECTION2: BALANCE SHEET ANALYSIS
Vertical Analysis WAL-MART STORES INC (WMT) BALANCE SHEET

Fiscal year ends in January Assets Current assets Cash Cash and cash equivalents Total cash Receivables Inventories Prepaid expenses Other current assets 2013-01 % 2012-01 %
7781000
3.83%
6,550,000
3.39%
7,781,000
3.83%
6,550,000
3.39%
6,768,000
3.33%
5,937,000
3.07%
43,803,000
21.57%
40,714,000
21.05%
1,588,000
0.78%
1,685,000
0.87%
89,000
0.05%
Total current assets Non-current assets Property, plant and equipment Land Fixtures and equipment Other properties Property and equipment, at cost Accumulated Depreciation Property, plant and equipment, net Goodwill Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt
59,940,000
29.51%
54,975,000
28.42%
25,612,000
12.61%
23,499,000
12.15%
43,699,000
21.52%
41,916,000
21.67%
102,413,000
50.42%
95,523,000
49.39%
171,724,000
84.55%
160,938,000
83.21%
(55,043,000)
(27.10)%
(48,614,000)
(25.14)%
116,681,000
57.45%
112,324,000
58.08%
20,497,000
10.09%
20,651,000
10.68%
5,987,000
2.95%
5,456,000
2.82%
143,165,000
70.49%
138,431,000
71.58%
203,105,000
100.00%
193,406,000
100.00%
12,392,000
6.10%
6,022,000
3.11%
Capital leases Accounts payable Taxes payable Accrued liabilities Other current liabilities Total current liabilities Non-current liabilities Long-term debt Capital leases Deferred taxes liabilities Minority interest Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock Additional paid-in capital
327,000
0.16%
326,000
0.17%
38,080,000
18.75%
36,608,000
18.93%
5,062,000
2.49%
1,164,000
0.60%
15,957,000
7.86%
18,154,000
9.39%
26,000
0.01%
71,818,000
35.36%
62,300,000
32.21%
38,394,000
18.90%
44,070,000
22.79%
3,023,000
1.49%
3,009,000
1.56%
7,613,000
3.75%
7,862,000
4.07%
5,395,000
2.66%
4,446,000
2.30%
519,000
0.26%
404,000
0.21%
54,944,000
27.05%
59,791,000
30.91%
126,762,000
62.41%
122,091,000
63.13%
332,000
0.16%
342,000
0.18%
3,620,000
1.78%
3,692,000
1.91%
Retained earnings Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity
72,978,000
35.93%
68,691,000
35.52%
(587,000)
(0.29)%
(1,410,000)
(0.73)%
76,343,000
37.59%
71,315,000
36.87%
203,105,000
100.00%
193,406,000
100.00%
Year to Year Change WAL-MART STORES INC (WMT) BALANCE SHEET

Fiscal year ends in January Assets Current assets Cash Cash and cash equivalents Total cash Receivables
1,231,000 18.79
2013-01
2012-01
+/- $
7,781,000
6,550,000
7,781,000
6,550,000
1231000
18.79
6,768,000
5,937,000
831000
14.00
7
3089000 7.59
Inventories Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Land Fixtures and equipment Other properties Property and equipment, at cost Accumulated Depreciation Property, plant and equipment, net Goodwill Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity
43,803,000
40,714,000
1,588,000
1,685,000
(97000)
(5.76)
89,000
(89000)
(100.00)
59,940,000
54,975,000
4965000
9.03
25,612,000
23,499,000
2113000
8.99
43,699,000
41,916,000
1783000
4.25
102,413,000
95,523,000
6890000
7.21
171,724,000
160,938,000
10786000
6.70
(55,043,000)
(48,614,000)
(6429000)
13.22
116,681,000
112,324,000
4357000
3.88
20,497,000
20,651,000
(154000)
(0.75)
5,987,000
5,456,000
531000
9.73
143,165,000
138,431,000
4734000
3.42
203,105,000
193,406,000
9699000
5.01
Liabilities Current liabilities Short-term debt Capital leases Accounts payable Taxes payable Accrued liabilities Other current liabilities Total current liabilities Non-current liabilities Long-term debt Capital leases Deferred taxes liabilities Minority interest Other long-term liabilities Total non-current liabilities Total liabilities
(5676000) (12.88) 6370000 105.78
12,392,000
6,022,000
327,000
326,000
1000
0.31
38,080,000
36,608,000
1472000
4.02
5,062,000
1,164,000
3898000
334.88
15,957,000
18,154,000
(2197000)
(12.10)
26,000
(26000)
(100.00)
71,818,000
62,300,000
9518000
15.28
38,394,000
44,070,000
3,023,000
3,009,000
14000
0.47
7,613,000
7,862,000
(249000)
(3.17)
5,395,000
4,446,000
949000
21.35
519,000
404,000
115000
28.47
54,944,000
59,791,000
(4847000)
(8.11)
126,762,000
122,091,000
4671000
3.83
Stockholders' equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive
823000 (58.37) (10000) (2.92)
332,000
342,000
3,620,000
3,692,000
(72000)
(1.95)
72,978,000
68,691,000
4287000
6.24
income Total stockholders' equity Total liabilities and stockholders' equity
(587,000)
(1,410,000)
76,343,000
71,315,000
5028000
7.05
203,105,000
193,406,000
9699000
5.01
Horizontal Analysis WAL-MART STORES INC (WMT) BALANCE SHEET

Current Fiscal year ends in January. Assets Current assets Cash Prior
Year/Base Year/Base
10
Cash and cash equivalents Total cash Receivables Inventories Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Land Fixtures and equipment Other properties Property and equipment, at cost Accumulated Depreciation Property, plant and equipment, net Goodwill Other long-term assets
105.22%
88.57%
105.22%
88.57%
132.99%
116.66%
120.61%
112.10%
53.65%
56.93%
0.00%
67.94%
115.51%
105.94%
105.03%
96.36%
106.88%
102.52%
114.79%
107.07%
111.16%
104.17%
118.09%
104.30%
108.16%
104.12%
122.28%
123.19%
145.00%
132.14%
11
Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt Capital leases Accounts payable Taxes payable Accrued liabilities Other current liabilities Total current liabilities Non-current liabilities Long-term debt Capital leases Deferred taxes liabilities Minority interest
111.18%
107.50%
112.42%
107.05%
217.94%
105.91%
97.32%
97.02%
113.48%
109.09%
3224.20%
741.40%
85.33%
97.08%
0.00%
55.32%
122.80%
106.52%
94.35%
108.30%
95.97%
95.52%
113.93%
117.66%
199.45%
164.36%
12
Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity
127.21%
99.02%
102.44%
111.47%
113.06%
108.89%
0.00%
0.00%
101.20%
103.21%
114.09%
107.39%
(58.82%)
(141.28%)
111.38%
104.05%
112.42%
107.05%
Balance sheet Analysis The vertical, horizontal and year to year change analysis of the balance sheet of Walmart shows that the companys current assets for the current year has increased from the previous year with a significant increase in cash and account receivables. The company has also invested in long-term assets in the current year. Though the company got rid of some of its current liabilities from the previous year, its short-term debt has increased by more than 100%. The company has also been successful in paying off a significant portion of its long-term debt.
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Though the increase in cash indicates profitability, a persistent increase in cash also indicates that the company is unable to make the most of its cash in hand. Therefore, the company should watch its cash in hand closely. The company also needs to revisit its credit policies to ensure that it does not have a lot of money stuck in account receivables. There has been a slight drop in the goodwill of the company from the previous year, which indicates a loss of confidence of the shareholders in the company. The companys short-term liabilities have increased by more than 12%. It has a significant investment in Land and other long-term assets. The companys retained earnings form a major part of their equity. The company has been very successful in keeping a balance between its debt and equity financing.
SECTION 3: INCOME STATEMENT
Vertical Analysis WAL-MART STORES INC (WMT) INCOME STATEMENT

Fiscal year ends in January Revenue Cost of revenue 2013-01 % 2012-01 % 2011-01 %
469,162,000
100.00%
446,950,000
100.00%
421,849,000
100.00%
352,488,000
75.13%
335,127,000
74.98%
315,287,000
74.74%
14
Gross profit Operating expenses Sales, General and administrative Total operating expenses Operating income Interest Expense Other income (expense) Income before income taxes Provision for income taxes Minority interest Other income Net income from continuing operations Net income from discontinuing ops Other
116,674,000
24.87%
111,823,000
25.02%
106,562,000
25.26%
88,873,000
18.94%
85,265,000
19.08%
81,020,000
19.21%
88,873,000
18.94%
85,265,000
19.08%
81,020,000
19.21%
27,801,000
5.93%
26,558,000
5.94%
25,542,000
6.05%
2,251,000
0.48%
2,322,000
0.52%
2,205,000
0.52%
187,000
0.04%
162,000
0.04%
201,000
0.05%
25,737,000
5.49%
24,398,000
5.46%
23,538,000
5.58%
7,981,000
1.70%
7,944,000
1.78%
7,579,000
1.80%
757,000
0.16%
688,000
0.15%
604,000
0.14%
757,000
0.16%
688,000
0.15%
604,000
0.14%
17,756,000
3.78%
16,454,000
3.68%
15,959,000
3.78%
-67,000
-0.01%
1,034,000
0.25%
-757,000
-0.16%
-688,000
-0.15%
-604,000
-0.14%
15
Net income
16,999,000
3.62%
15,699,000
3.51%
16,389,000
3.89%
Year to Year Change WAL-MART STORES INC (WMT) INCOME STATEMENT

Fiscal year ends +/- $ in January Revenue Cost of revenue Gross profit Operating expenses 2013-01 2012-01
22,212,000 4.97
% 2011-01
+/- $
469,162,000
446,950,000
421,849,000
47,313,000
11.22
352,488,000
335,127,000
17,361,000
5.18
315,287,000
37,201,000
11.80
116,674,000
111,823,000
4,851,000
4.34
106,562,000
10,112,000
9.49
Sales, General and administrative Total operating expenses Operating income

88,873,000 85,265,000 3608000 4.23 81,020,000 7,853,000 9.69 88,873,000 85,265,000 3,608,000 4.23 81,020,000 7,853,000 9.69
27,801,000
26,558,000
1,243,000
4.68
25,542,000
2,259,000
8.84
16
(71,000) (3.06)
Interest Expense Other income (expense) Income before income taxes Provision for income taxes Minority interest Other income Net income from continuing operations Net income from discontinuing ops Other Net income
2,251,000
2,322,000
2,205,000
46,000
2.09
187,000
162,000
25,000
15.43
201,000
(14,000)
(6.97)
25,737,000
24,398,000
1,339,000
5.49
23,538,000
2,199,000
9.34
7,981,000
7,944,000
37,000
0.47
7,579,000
402,000
5.30
757,000
688,000
69000
10.03
604,000
153,000
25.33
757,000
688,000
69000
10.03
604,000
153,000
25.33
1302000 17,756,000 16,454,000
7.91 15,959,000 1,797,000 11.26
(67,000)
67000
(100.00)
1,034,000
(1,034,000)
(100.00)
(757,000)
(688,000)
(69000)
10.03
(604,000)
(153,000)
25.33
16,999,000
15,699,000
1300000
8.28
16,389,000
610,000
3.72
17
Horizontal Analysis WAL-MART STORES INC (WMT) INCOME STATEMENT

Current Fiscal year ends in January Revenue Cost of revenue Gross profit Operating expenses Sales, General and administrative Total operating expenses Operating income Interest Expense Other income (expense) Income before income taxes
109.69% 105.24% 100.00%
Prior Year/Base
Two Years ago/Base
Year/Base
111.22%
105.95%
100.00%
111.80%
106.29%
100.00%
109.49%
104.94%
100.00%
109.69%
105.24%
100.00%
108.84%
103.98%
100.00%
102.09%
105.31%
100.00%
93.03%
80.60%
100.00%
109.34%
103.65%
100.00%
18
Provision for income taxes Minority interest Other income Net income from continuing operations Net income from discontinuing ops Other Net income
105.30%
104.82%
100.00%
125.33%
113.91%
100.00%
125.33%
113.91%
100.00%
111.26%
103.10%
100.00%
0.00%
(6.48%)
100.00%
125.33%
113.91%
100.00%
103.72%
95.79%
100.00%
Income Statement Analysis
Among the items to consider: a. The money a business makes from its products and services is considered the company's Total Revenue. Wal-Mart Stores Inc.'s net sales increased from 2011 to 2012 and from 2012 to 2013 b. Cost of revenue taken out from Sales revenue gives the Gross Profit. Total revenue and Cost of revenue both were observed to increase over years. Wal-Mart Stores Inc.'s Gross Profit increased from 2011 to 2012 and from 2012 to 2013 c. Income taxes are excluded from the Business Total income which is calculated as the Net income. Wal-Mart Stores Inc.'s Net income decreased
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from 2011 to 2012 as the net income from discontinued ops was in loss and increased from 2012 to 2013 d. Operating Income divided by the total revenue gives the Profit margin. It means that means that a company can deliver merchandise or services to customers at much cheaper prices than competitors and still make money. Wal-Mart Stores Inc.'s Profit margin increased from 2011 to 2012 and from 2012 to 2013. e. Revenues are calculated as the total amount made by the sales in that annual period where as Expenses are calculated as the total amount used to make those products. According to the Income sheet walmarts revenue and expenses have a positive increased from 2011 to 2013. This implies walmart sold more products within the same period of time than their previous year f. Discontinued Operations - there was a positive Net income from discontinued operations in 2011,which turned into loss in 2012. This improved in 2013 where is there was no positive net income but did not run into loss either. This implies that walmart made income by discontinuing some operations in 2011 but could not achieve the same continuing forward in the future years. Extraordinary items - There are no Extra-ordinary items in the income statement. Changes in the accounting policy - EBITDA increased from 2011 to 2013 each year. There are no good or bad EBITDA numbers. Any positive number implies the company has profits. The income sheet implies that walmart has profitability improved every year from 2011 to 2013.
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SECTION 4: RATIO ANALYSIS

Compute the ratios for the most current year in following categories. The calculations used to determine the answers for the ratio analysis must be included in the appendix.
Liquidity Ratios Formula Current Ratio Acid (Quick) Ratio

Current assets/current liabilities
Ratio 0.83 0.20
(Cash equivalent+marketable securities+net receivable)/ current liabilities Current assets- current liabilities
Working Capital Cash Ratio
(11,878) 0.11
(cash equivalents+marketable securities)/ current liabilities
Days Sales in Receivables Accounts Receivable Turnover
Gross receivable/(net sales/365)
5.3
Net Sales/Average Gross Receivables Average Gross Receivables/(Net Sales/ 365)
68.87
Accounts Receivable Turnover in Days
5 days
Days Sales in Inventory
Ending Inventory/(Cost of Goods
45.3578
21
Sold/365)
Inventory Turnover
Cost Of Goods Sold/ Average Inventory
10.64
Inventory Turnover in Days
Average Inventory / (Cost of Goods Sold/365)
34 days
Operating Cycle
Account Receivable Turnover in Days+ Inventory Turnover in Days
39 days
Sales to Working Capital Operating Cash Flow to Current Maturities of Long-term Debt and Current Notes Payable
Sales/ Average Working Capital
-48.54
No debt payable within one year
Operating Cash Flow/ Current Maturities of Long Term Debt and Current Notes Payable
Long-Term Debt Paying Ability Formula Ratio
Times Interest Earned
Recurring Earnings, Excluding Interest Expense, Tax Expense, Equity Earnings and Noncontrolling Earnings
12.43
22
Interest Expense, Including Capitalized Interest
Debt Ratio
Total Liabilities / Total

Assets
0.62
Debt / Equity Ratio
Total Liabilities /
Shareholders Equity
1.65
Debt to Tangible Net Worth Ratio
Total Liabilities
(Shareholders Equity Intangible Assets)
1.65
Operating Cash Flow / Total Debt
0.47
Profitability Ratios Formula Net Profit Margin Net Income Before NonControlling Interests, Equity Income and Non recurring Items / Net Sales Total Asset turnover Net Sales/ Average Total Sales 469162000/4 58055000=1. 0242 Return on Assets Net Income Before Non8.57 Ratio 3.62
23
Controlling Interests and NonRecurring Items/ Average Total Assets Sales to Fixed Assets Net Sales/ Average Fixed Assets (exclude Construction in progress) Return on Investment Net Income Before Non Controlling Interest & Non Recurring Items + {(Interest Expense) + (1- Tax Rate)} / Avg (Long term Liabilities + Equity) Return on Total Equity Net Income Before Non recurring Items - Dividend on Redeemable Preferred Stocks / Avg Total Equity Return on Common Equity Gross Profit Margin Gross Profit / Net Sales 24.38 22.27 469162000/5 7457000=8.1 654 18.2%
Investor Ratios Formula Ratio
24
Degree of Financial Leverage
Earnings Before Interests and Taxes/ Earning Before Tax
27988000/257 37000=0.9709 5.04
EPS - Basic
( Net Income- Preferred Dividends)/ Weighted Average Number of Common Shares Outstanding (Operating Cash Flow- Preferred Dividends)/ Diluted Weighted Average Common Shares Outstanding
EPS - Diluted
5.02
Price / Earnings Ratio
Market Price Per Share/ Diluted Earning Per Share, before nonreturning items
14.48
Percentage of Earnings Retained
(Net Income before non-returning Items All Dividends)/ Net Income Before Non-returning Items
Dividend Payout
Dividends Per Common Share/Diluted Earning Per Share Before Non-returning Items Dividends Per Common Share/ Market Price Per Common Share ( Total Shareholders EquityPreferred Stock Equity)/ Number of Common Shares Outstanding
1.59
Dividend Yield
Book Value
23.04
25
Operating Cash Flow / Cash Dividends
Operating Cash Flow/Cash Dividends
25591000/1.59 =16094968.55
ANALYSIS FOR LIQUIDITY RATIOS
Liquidity Ratios & Long term Debt Paying Ratios
In the above table, we are measuring the liquidity & Long term Debt Ratio. Those latter are measuring the ability of our company to pay-off its short-term debt obligations & Long term Debt paying ability of the company
By comparing the companys liquid assets and its liabilities, the greater the liquid assets compared to short term & Long term debt liabilities the better because it shows that the company can pay its debts that are due. Nevertheless, when the opposite happen, the company will have difficulties meeting its obligation and that is a bad sign for investors
Our corporation is in a good stand point, as the assets exceed liabilities, meaning that the company will be able to pay off debt that are due now and the ones that are upcoming in the future
Testing a companys liquidity & Long Term Debt ratio is the primary step for investors in analyzing a company. The firms personnel use this information to compare the firm to its competitors and allow them to implement changes within the industry
PROFITABILITY RATIOS:
26
In the table above, we are discussing the profitability ratios, which is the businesss ability to generate earnings and comparing them to the expenses.
Every firm is concerned about its profitability ratio. The profitability helps us determine the companys bottom line and its return to investors. It also shows the overall efficiency and performance of the company.
Looking at the net profit margin, we can say that 3.62 cents of every dollar is a profit and that is pretty fair for our corporation.
Users of this information are company managers and owners because they are the ones looking at the firms ability to transform sales dollars into profit.
INVESTORS RATIOS
In this category we are measuring the investors ratios which are very important to consider when you want to invest in any company.
Investors should look closely into this category in order to know if the company is paying dividends, how much earning per share will they get, and how sensitive is the company to those earnings per share.
In our case, the Walmart Company is standing in a fair position. We can tell that from the degree in financial leverage that for every 1% change in operating income. EPS should change by 0.98% and that is fair for the company. As far as dividends, Walmart is paying high dividends compared to its competitors and it continues to raise every year.
Investors are the main users of this information because they are concerned about how much money they will get per share if they invest in this certain corporation.
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SECTION 5: CONCLUSIONS/RECOMMENDATIONS
Walmart should build some alliances and strategic joint ventures with other global retail companies in order to expand itself at the international front, enhance penetration into the global market and withstand the cultural shocks not coming in between the path to success. From the financial analysis that the account receivables are very high, we recommend that the company should revisit its credit policy. The company should ensure that its credit policy is not too lenient since it might in order to not have a lot of cash stuck in receivables. The company should be able to ensure that their accounts receivables turnover is quicker. We recommend Walmart should stick with its current policies and strategies for the continued best rewards it is reaping. Walmart needs to maintain consistency in its operations so that there are no significant changes in their statements across the years.
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Appendix
Liquidity Ratios
Current ratio = Current assets Current liabilities = 59,940 71,818 = 0.83
Quick ratio = Total quick assets Current liabilities = 14,549 71,818 = 0.20
Working Capital = Current Assets Current Liabilities = 59,940 71,818 = (11,878)
Cash ratio = Total cash assets Current liabilities = 7,781 71,818 = 0.11
Days Sales in Receivables = (Gross receivables* 365) Net sales
= 6768/(466114/365) = 5.3
Accounts Receivable Turnover = Net Sales Avg Gross Receivables = 466,114 6768 = 68.87
29
Accounts Receivables Turnover in Days = Avg Gross Receivables * 365 Net Sales =6768* 365 466114 = 5
Days Sales in Inventory = (Ending Inventory * 365) / Cost Of Goods Sold = 43803000/(352488000/365) = 45.3578
Inventory turnover = Net sales Inventories = 466,114 43,803 = 10.64
Average inventory processing period = 365 Inventory turnover = 365 10.64 = 34
Operating cycle = Average inventory processing period + Average receivable collection period = 34 + 5 = 39
Sales to Working Capital = Sales Avg Working Capital = 466,114 {(-11,878) + (-7325)}/2 = -48.54
Long-Term Debt-Paying Ability Ratios
Times Interest Earned = Recurring Earnings, Excluding Interest Expense, Tax Expense, Equity Earnings and Non-controlling Earnings Interest Expense, Including Capitalized Interest. = 27,988 2,251 = 12.43
Debt Ratio = Total Liabilities Total Assets = 126,243 203,105 = 0.62
Debt / Equity Ratio = Total Liabilities Shareholders Equity = 126,243 76,343 = 1.65
30
Debt to Tangible Net Worth Ratio = Total Liabilities (Shareholders Equity Intangible Assets) = 126,243 (76,343 0) = 1.65
Operating Cash Flow / Total Debt = 25591 / 54136 = 0.47
Profitability
Gross profit margin = 100 Gross profit Net sales = 113,626 466,114 = 24.38
ROE = Net Income Before Non recurring Items - Dividend on Redeemable Preferred Stocks / Avg Total Equity = 16,999 76,343 = 22.27
Return on Investment = Net Income Before Non Controlling Interest & Non Recurring Items + {(Interest Expense) + (1- Tax Rate)} / Avg (Long term Liabilities + Equity= 39,091 / 215,016 = 18.2%

Walmart&#39;s Financial Reporting Analysis

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Wal-Marts Financial Reporting Analysis

SECTION 1: EXECUTIVE SUMMARY