FIN 6060 MODULE 1[1]

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Apr 3, 2024

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FIN 6060: Financial Decision Making Module 1 - Company Analysis Worksheet Module 1: Company Analysis Akinlade Temitope Damilola Nexford University FIN 6060: Financial Decision Making Dr. Keith Wade January 2024
FIN 6060: Financial Decision Making Module 1 - Company Analysis Worksheet Company Analysis Directions: Obtain end-of-year financial statements (balance sheets and income statements) for the previous three years from Amazon and Walmart . Conduct a ratio, horizontal, and vertical analysis for each company. Then answer the following questions. INCOME STATEMENT FOR AMAZON INC Vertical analysis Horizontal analysis 2021 2022 2021 2022 Value change % Change Total net sales 469,822 513983 100.00% 100% 44,161 9% Cost of Sales 272,344 288831 57.97% 56% 16,487 6% Total operating expenses 444,943 501735 94.70% 98% 56,792 13% Net income (loss) 33364 2722 7.10% 1% -30,642 -92% Basic earnings per share 3.3 0 0.00% 0% -3 -92% Diluted earnings per share 3.24 0 0.00% 0% -3 -92% Weighted-average shares used in the computation of earnings per share Basic 10,117 10189 2.15% 2% 72 1% Diluted 10,296 10189 2.19% 2% -107 -1% BANLANCE SHEET FOR AMAZON INC 2021 2022 Vertical analysis Horizontal analysis ASSETS 2021 2022 Value change %change Current assets: Current Cash and cash equivalents 36,220 53888 100% 100% 17,668 49%
FIN 6060: Financial Decision Making Module 1 - Company Analysis Worksheet Marketable securities 59,829 16138 165% 30% -43,691 -121% Inventories 32,640 34405 90% 64% 1,765 5% Accounts receivable, net, and Other 32.891 42360 0% 79% 42,327 117% Total current assets 161,580 146791 446% 272% -14,789 -41% Property and equipment, net 160,281 186715 443% 346% 26,434 73% Operating leases 56,082 66123 155% 123% 10,041 28% Goodwill 15,371 20288 42% 38% 4,917 14% Other assets 27,235 42758 75% 79% 15,523 43% Total assets 420,549 462675 1161% 859% 42,126 116% LIABILITY AND STAKEHOLDERS’ EQUITY Current liabilities: Accounts payable 78,664 79.6 217% 0% -78,584 -100% Accrued expenses and other 51,775 62566 143% 116% 10,791 14% Unearned 11,827 13227 33% 25% 1,400 2% Total current liabilities 142,266 155393 393% 288% 13,127 17% Long-term lease liabilities 67,651 72968 187% 135% 5,317 7% Long-term debt 48,744 67150 135% 125% 18,406 23% Other long-term liabilities 23,643 21121 65% 39% -2,522 -3% Stockholders' equity: Common stock 106 108 0% 0% 2 2% Treasury stock, at cost -1,837 -7837 -5% -15% -6,000 -5660% Additional paid-in capital 55.437 75066 0% 139% 75,011 70765% Accumulated other comprehensive income (loss) -1,376 -4487 -4% -8% -3,111 -2935% Retained earnings 85,915 83193 237% 154% -2,722 -2568% Total stockholders' equity 138,245 146043 382% 271% 7,798 7357% Total liabilities and stockholders' equity 420549 462675 1161% 859% 42,126 39742% Ratio Analysis of Amazon 2021 2022
FIN 6060: Financial Decision Making Module 1 - Company Analysis Worksheet Current Ratio: 1 1 Quick Ratio: 1 1 Debt to equity Ratio 0.35 0.45 Debt to asset ratio 0.1 0.1 INCOME STATEMENT OF WALMART INC 2022 2021 Vertical analysis Horizontal analysis   Revenues: 2022 2021 value change %change Net sales 567762 555233 100% 100% 12529 2% Membership and Other income 4992 3918 1% 1% 1074 27% Total revenues 572754 559151 101% 101% 13603 2% Costs and expenses: Cost of sales 429000 420315 76% 76% 8685 2% Operating, selling, general and administrative expenses 117812 116288 21% 21% 1524 1% Operating income 25942 22548 5% 4% 3394 15% Interest: Debt 1674 1976 0% 0% -302 -15% Finance lease 320 339 0% 0% -19 -6% Interest income -158 -121 0% 0% -37 31% Interest, net 1836 2194 0% 0% -358 -16% Loss on extinguishment of debt 2410 0 0% 0% 2410 0% Other (gains) and losses 3000 -210 1% 0% 3210 -1529% Income before income taxes 18696 20564 3% 4% -1868 -9%
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