Major Products

Hardware

House-wares

Auto Supplies

Small Appliances

Domestics

Grocery

Candy

Tobacco

Pharmaceuticals

Electronics

Health & Beauty Aids

Sporting Goods

Toys

Stationary

Jewelry

Shoes

1-hour Photo
Major Competitors

Target

Sears Roebuck & Co.

Kmart

Costco Wholesale
Most Successful Wal-mart Brands

Ol' Roy

Great Value

Equate
Financial Analysis
Profitability
Wal-mart experienced sales growth of 20% in the fiscal year of 2000. This impressive increase is a direct
result of the companies expansion program. Wal-mart has also acquired a few international stores, which
are doing very well and adding to the companies' profit. As the table shows wal-mart is no stranger to
climbing profits, in fact wal-mart has managed to increase sales by no less than 12% (typically more) each
year for 11 consecutive years.
Year
Net Earnings
Net Sales
Profitability
2000
$5,377
$165,013
0.0326
1999
$4,430
$137,634
0.0322
1998
$3,526
$117,958
0.0299
1997
$3,056
$104,859
0.0291
1996
$2,740
$93,627
0.0293
Liquidity
Wal-marts' liquidity has been decreasing since 1996, which is a good sign from a growing company.
In 2000 wal-marts liquidity dropped off drastically, this is on account of their expansion projects. They are
willing to take some short-term risks, because they are very confident it will pay off down the road. A lot
of wal-marts' money is being pumped into the super centers and also financing the over seas expansion.
Year
2000
1999
1998
1997
1996

Current Assets
$24,356
$21,132
$19,352
$17,331
$15,338

Short-term Debt
$25,803
$16,762
$14,460
$11,454
$9,973

Liquidity
0.9439
1.2607
1.3383
1.5131
1.5380

Capital Management
To say wal-mart is healthy is an under statement, thriving is a bit more fitting. The company has plenty of
assets to cover their overall debt. Wal-mart continues to widen the gap between total assets and overall
debt, the companies leverage has been increasing for 5 years running. By keeping their assets high and
debt low wal-mart is assuring increased profits and happy shareholders for years to come.
Year
Total Assets
Overall Debt
Leverage
2000
$70,349
$25,803
2.7264
1999
$49,996
$16,762
2.9827
1998
$45,384
$14,460
3.1386
1997
$37,541
$11,454
3.2775
1996
$32,819
$9,973
3.2908
Asset Management
Once again wal-mart demonstrates why it is looked at as the 5th most admired company in the United
States. Wal-marts' inventory ratio has been on the rise for at least five years. As wal-mart grows and gains
experience it creates a very strong base for it self. It is one of the few companies today that actually learns
from and builds on its mistakes.
Year
2000
1999
1998
1997
1996

Cost of goods Sold

Total Inventory Inventory Turnover
$129,664
$19,973
6.4920
$108,725
$17,076
6.3671
$93,438
$16,497
5.6639
$83,510
$15,897
5.2532
$74,505
$15,989
4.6598

Marketing Analysis
Products/Service
Wal-mart is included in the general merchandise industry. Wal-marts' products cover the entire spectrum,
their products include; Hard goods (hardware, house-wares, auto supplies, small appliances) soft
goods/domestics, grocery, candy, tobacco, pharmaceuticals, electronics, health and beauty aids, jewelry,
shoes, and 1-hour photo. Wal-marts' top performers are hard goods and soft goods/domestics. The general
merchandise industry has a very large target market on account of their cornucopia of products.
Wal-mart prides itself on its friendly atmosphere. Every wal-mart store has an associate in the
front of the store known as a greeter. This person's sole purpose is to say hello and smile to anyone
entering the store. Wal-mart also has another rule that's been in place since the company opened; it's called
the Sundown Rule. The sundown rule is in place so every customer receives the best service possible. All
associates are expected to handle any and all requests by the end of the day, this habit eliminates any
procrastination that may take place.
Price
Wal-Mart stores operate on an "Every day low price" philosophy. Wal-mart is able to maintain their low
price structure through very careful expense control. Wal-mart also reduces cost by cutting back on
advertising, circulars inparticular. Wal-marts' competitors run 50-100 circulars per year, wal-mart only
produces 12-13 major circulars.
Distribution
Wal-mart has over 1801 discount stores, 721 Super-Centers, and 463 Sam's Clubs, in the United States
alone. Wal-mart has expanded to become an international company. Worldwide wal-mart has 2373
discount stores, 1104 Super-Centers, and 512 Sam's Clubs.
Promotion and Advertising

Management Analysis
Structure
Wal-mart Inc. is organized into three major divisions, International, Sam's Club, and Wal-mart. Tom
Coughlin runs the wal-mart division, which is the largest and the oldest of the three. Tom Grinn is in charge
of the Sam's Club division, which takes second. Lastly John Menzer oversees the international division.
Over seeing all the divisions and all things that go on with Wal-mart Inc. is the President and CEO, H Lee.
Scott, and Chairman of the board, S. Robson Walton. Lee Scott started off working for a trucking firm that
serviced wal-mart, now he is the CEO. The company is structured in such a way that there is opportunity
for all employees, especially those who show a hard work ethic and tremendous leadership just like Lee
Scott.
Training and Development
Wal-mart is truly a master of their business. Any company that can increase profits over the preceding year
by a large margin, and do it for 11 consecutive years must be doing something right. It all starts with the
people, it is virtually impossible to run a successful business if your employees are not thoroughly trained.
Wal-mart realizes this and that's why they invest so much time and money in their training program. Walmart holds a local and a regional training program twice a year. Top managers are required to attend. The
managers that attend these seminars are expected to take what they've learned and implement it in the
individual stores. Wal-mart knows that complacency will eventually kill any organization, and that is why
they are 100% committed to the continued training of their ever-important associates. "The idea we drive
in the company is Continuous Improvement, these two words describe what the company is all about"
(Glass, David former CEO)