Group 5

Budianto Wijaya RA6017036

Nguyen Hai Viet RA6007463
Agenda
• Introduction to Walmart
• History & development
• Product departments
• Future strategies
• Retail Industry
• SWOT Analysis
• Competitor Analysis
• Financial Performance & Analysis
World Map
History & development
• 1960s
1962: On July 2, Sam Walton opens his first Walmart in Rogers, Ark
– Walmart begins
1967: The Waltons now own 24 stores, ringing up $12.7 million in
sales.
1969: The company officially incorporates a Wal-Mart Stores, Inc.
• 1970s
1970: Walmart becomes a publicly traded company on October 1.
1972: Walmart is listed on the New York Stock Exchange (ticker:
WMT) – Walmart goes to public
• 1980s – Walmart comes of age
1980: Walmart reaches $1 billion in annual sales, faster than any
other company at that time.
1983: The first Sam’s Club opens in Midwest City, Okla.
History & development (Ctd.)
• 1990s
1991: Walmart expands internationally, opening a Sam’s Club in Mexico City.
1993: Walmart celebrates its first $1 billion sales week.
• 2000s – one of the most successful retailers in the world
2002: For the first time, Walmart tops the Fortune 500 ranking of America’s
largest companies.
Walmart enters the Japanese market through its investment in Seiyu.
2009: Walmart enters Chile with the acquisition of a majority stake in D&S
S.A.
Mike Duke succeeds Lee Scott as CEO.
For the first time, Walmart exceeds $400 billion in sales.
2011: With the acquisition of MassMart, Walmart surpasses 10,000 retail
units around the world.
2012: Walmart celebrates 50 years of helping customers save money and
live better.
Product Departments
Movies, Home, Apparel,
Electronics
Music & Furniture & Shoes &
& Office
Books Patio Jewelry

Baby & Toys &

Sports, Fitness Auto & Home
Video & Outdoors Improvement
Kids Games

Pharmacy, Grocery &

Gift, Craft &
Photo Party Supplies Health &
Pets
Beauty
Corporate key strategies to the
future
Developing people

Driving the productivity loop

Winning in Global eCommerce

Reinvigoring customer focus culture

Leading in social and environmental

issues
Strategy on business branches
Walmart U.S.

• Offering a broad assortment with event lower price

Walmart International

• Meeting local needs and leveraging global resources

Sam’s Club

• Leveraging Member insights to deliver value and

quality
Retail Industry
• 2/3 of US GDP came from retail consumption
• Total sale in 2011 is $4.7 trillion, represent 8% increase from
2010
• Past 12 months, share price of retail industry generally out
performed Russel 3000 index
• Employment for retail industry see positive growth from Oct
2010.
 SWOT analysis
Strengths
• Market leader with unprecedented scale
and wide product assortment
• Low cost leadership enable Walmart to
offer product at low price
• Internationalization strategy lay a strong
foundation for growth as the US market
matures
Opportunities
• Outperformance of the retail sectors in
emerging markets
• Concentration on grocery and food will
benefit as eating at home, health and
wellness trends continue to emerge
• Growth in internet retailing to serve larger
market
Weaknesses
• Big box retailing format led to low
penetration in the urban areas
• Litigations affect labor relations adversely
Threats
• More than two million employees increase
exposure to rising wages and high
healthcare costs
• Volatility In commodity prices and cost
inflation may pressurize margins
• Blurring difference between Walmart and
its competitors
• Increasing resistance to expansion from
local organizations and authorities
Competitor Analysis - Net Income
Competitor Analysis - Revenue
 Financial
Performance &
Analysis
 Balance Sheet

(amount in million) 2012 2011 2010

Assets $193,406 $180,782 $170,407

Liability $117,645 $109,535 $97,759

Equity $75,761 $71,247 $72,648

Total Resources $193,406 $180,782 $170,407

Income statement
 Cash Flow Statement
(amount in million) 2012 2011 2010
Cash flows from operating
24,255 23,643 26,249
activities
Cash flows from investing
(16,609) (12,193) (11,620)
activities
Cash flows from financing
(8,458) (12,028) (14,191)
activities
Cash and cash equivalents at
$6,550 $7,395 $7,907
end of year
Growth
ROI
ROA
 Total Assets Turnover
• Total assets = Sales/Average total assets

(amount in Industry
2010 2011 2012
million) average

Sales 405,132 418,952 443,854

Average total
166,584 175,459 186,986
Assets

Total Assets
2.43 2.39 2.37 2.6
Turnover
 Inventory Turnover
• Inventory turnover = COGS/Inventory

(amount in Industry
2010 2011 2012
million) average

COGS 304,106 314,946 304,106

Inventory 36,437 36,437 40,714

Inventory
9.3 8.64 8.23 7.22
turnover rate
 Cash Ratio
• Cash ratio= Cash + marketable securities/ Current liability

(amount in Industry
2010 2011 2012
million) average
Cash +
marketable $7,907 7395 7907
securities
Current liability $55,543 58603 55543

Cash ratio 0.14 0.13 0.14

 Current Ratio
• Current ratio= Current Asset/ Current liability

(amount in Industry
2010 2011 2012
million) average
Current assets $48,032 $63,012 $54,975

Current liability $55,543 $58,603 $62,300

Current ratio 0.86 0.89 0.88 1.84

Walmart Company
• Listed in NYSE
• Ticker: WMT
• Goes public on 25, Aug 1972
• Stock price: $61.36 (closing of January 31 ,2012)
• Shares outstanding: 3,424,697,000 (January 31,
2012)
• P/E Ratio: 13.58 (Jan 2012)
• EPS: $1.68 (Jan 2012)
 EPS & Dividend
2.5

0.3025
2 0.365
1.68
0.2725 1.5
0.365
1.5 0.365 0.365
1.24 0.3025 0.3025
0.2725 0.3025
0.2725 1.09 Dividend
0.2725
0.97 0.95 0.97 0.96
1 0.89
0.81
0.87 EPS
0.77

0.5

0
 Stock Price

Source: Yahoo Finance

http://finance.yahoo.com/echarts?s=WMT+Interactive#symbol=wmt;range=20090504,2
0120504;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscal
e=off;source=undefined;
Stock Growth
Market-to-book 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
𝐵𝑜𝑜𝑘 𝑣𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
Price-earning ratio 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
Thank you for listening