Financial Analysis For Walmart

Wal-marts marketing strategy is to boast about having the cheapest prices out of their competitor’s and guarantees this, by implementing a price matching policy. Apparently, this has worked out for the best interest of the corporation, and their income statements can prove it. Wal-Mart’s income statement for the past three years reflects a positive growth pattern for every entry of the Income Statement. The Income tax-Current Domestic record is the only entry on this income statement that produces a stabile number. The indication for the income tax number to show a declining trend is probably that the Wal-mart accountants have located many tax loop holes to reduce the actual company income tax load owed.

The purpose of this business report is to gain familiarity with Wal-Mart and to learn about the different aspects that make Wal-Mart a successful company. This report gives an in-depth analysis of the company history, services and products provided, the company philosophy, business methods, organizational structure, and financial and competitive analysis.

Today I will be trying to convince you to invest in the Wal-Mart Stores, Inc. What makes this stock great you may ask is that it has more than 5,000 stores and clubs nationwide. The stock cost $71.67 per share and the stock has gone up $1.59. Walmart first opened common stock to the public in 1970 and began trading on NYSE on August 25,1972. Walmart has emphasized the importance of keeping its merchandise in stock for shoppers. The company’s stock have risen about 15% this year. Wal-Mart is the world's largest retailer. The employees are more evident as Wal-Mart becomes a more pleasant place to shop. Walmart has said it will invest billions in lowering

In 2016, Wal-Mart’s income came in at $117.5 billion, which increased 1.4%, from the previous year.

With the exception of ROE, most financial ratios and even absolute values bear testimony to Wal-Mart’s recognition as the leader in the retailing industry. The reason behind Sears’s higher ROE can be explained by a comparison of the 3 ratios that constitute the ratio known as DuPont identity that is profit margin, asset turnover and equity multiplier. While both firms had similar profit margins, Wal-Mart’s asset turnover was 2.8 compared to Sears’ 1.1 due to the firm’s effective utilization of assets and lease agreements to facilitate revenue generation.

Through the mid-part of the 80’s and into the early 90’s Wal-Mart had still produced annual earnings growth over 20%. It wasn’t until the early part of the century where Wal-Mart had produced earnings growth in the low teens to single digits. With that as supporting material, Wal-Mart has already experienced it’s growth and transition phases of its business cycle and is more in their maturity stage of their business. As of 2010, Wal-Mart is the largest retailer in the world with more than $400 billion in annual revenues across more than 8,000 stores. It would be. It would not be justifiable to utilize the three-stage dividend approach in valuing such a mature company.

In the United States of America "fortune" magazine published 2011 Annual Global Fortune 500 rankings, WAL-MART, In the global top 500 enterprises once again won the top，with the business income is 421849 dollar, annual profit of 16389 million dollar. Also worth noting is, in March ten before the other enterprises in the vast majority of oil or electric power resource monopoly enterprises. Then, as a major in retail industry, WAL-MART 's tremendous achievements stunning!

Wal-Mart is sitting at number one on the Global Fortune 500 list. Sam Walton would never have thought that his creation of Wal-Mart in 1962 would lead to a global dynasty. By 1972 Wal-Mart went public which gave an infusion of money and capital for Mr. Walton that gave them 276 stores by 1980. In the mid 80's Wal-Mart expanded to having member only warehouse stores, Sam's Club. From there Wal-Mart opened supercenters that included full grocery and 36 departments of regular merchandise. By the end of the 1980's there were 1,402 stores and 123 Sam's Clubs (Wal-Mart corporate 2012).

Wal-Mart is a general merchandise discount retailer, which was incorporated in 1962. Wal-Mart’s history is based on one man, Sam Walton, who changed the course of retailing forever. Sam Walton first entered retailing when he was a management trainee at J.C. Penny Co. in 1940 in Des Moines, Iowa. After serving in the Army in World War II, Walton acquired a Ben Franklin variety store franchise with his brother James Walton in Newport Arkansas, until they lost the lease to the store in 1950. By 1962, when the first Wal-Mart Discount City was opened in Rogers Arkansas, both Walton’s were operating fifteen stores under the “Walton 5 & 10” name, and were the largest Ben Franklin franchisee in the

The intention of this case study is to evaluate Wal-Marts.com's profitability of success regarding its situation in 1999.

In order to measure how the performance of the Wal-Mart now and in the future, (Wal-Mart wants in low price and low cost) we need to analysis some financial ratio from the number on books.

Potential investors examining Caterpillar’s stock’s value will see that Cat outperforms the competition in almost every area concerning stock valuation. Earnings per share is a measure of a company’s net income relative to the number of shares of common stock outstanding. Caterpillar’s earnings per share of 7.40 dominated the industry in 2011. The second best EPS in the industry was 3.91, posted by CNH Global.

The table above details the financial metrics of Wal-Mart and Amazon for the years 2009 and 2010. We can describe the financial performance of both the companies based on the table above.

where TV is the terminal value we calculate the present day intrinsic value of the Wal-Mart stock to be $62.15 hence the market value is consider low compared to our forecasted value. This method replicates the basic foundation of the Discount Cash flow Model (DCF), which in our opinion is the preferred method in valuation studies.

The dividend payout, dividend yield, and dividend per share for past 3 years of Walmart were as follows: