Analysis of Wal-Mart's 2004 Financial Statements

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ANALYSIS OF A FIRM’S FINANCIAL STATEMENTS An Analysis of Wal-Mart’s 2004 Financial Statements LeTourneau University I. Executive Summary A. Objective of paper My objective is to analyze financial statements from the 2004 Wal-Mart Annual Report. Based on my findings and any relevant supplementary information provided about Wal-Mart and its operating environment, I will identify areas in which the company is performing well and advise management of any problem areas. B. Summary of findings Based on the information that I found on the financial statements, Wal-Mart Stores, Inc. is currently on the rise. They have increased their cash flow while decreasing their long-term debt. Their…show more content…
In 2004, Wal-Mart responded by testing their own dollar store concept, a subsection of some stores known as "Pennies-n-Cents." Wal-Mart has struggled in other foreign markets. For example, in Germany, it had captured just 2% of German food sales following its entry into the market in 1997 and had remained "a secondary player" compared to competitor Aldi which boasts 19% share of the German market. In July 2006, Wal-Mart announced its withdrawal of operations from Germany because of sustained losses. Its stores are to be sold to German company METRO AG. In China, Wal-Mart is "a small fish" as its strategy of "everyday low prices" has not been successful against "Chinese mom-and-pop shops that are used to cutthroat pricing." In May 2006, Wal-Mart withdrew from the South Korean market when it agreed to sell all 16 of its South Korean outlets to Shinsegae, a local retailer, for $882 million who are as of late 2006 re-branding the country 's Wal-Marts as E-mart. Wal-Mart had originally entered the South Korea market in 1998. In the UK, Wal- Mart 's ASDA subsidiary is the second largest chain after Tesco. Specifically, ASDA is a distant second to Tesco in the UK grocery market, and as of 2006 the gap is widening, based on market share figures published by TNS Worldpanel (Wikipedia). C. Economic climate and outlook Wal-Mart Chief Executive Lee Scott warned earnings in the current quarter could fall short of Wall

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