Wal-Mart Financial Analysis

1135 Words Aug 8th, 2008 5 Pages
Introduction Wal-Mart was founded in 1962 by Sam Walton in Roger, Arkansas. Wal-Mart has 4,100 stores and clubs in the U.S. and a total of 7,300 unit’s world wide. It employed about 2 million associate’s world wide and approximately 1.4 million in the United States. Wal-Marts average annual total revenue rate was slightly more than 10% for the three years from the fiscal year ending 2006 to the fiscal year ending 2008. They also had a stock split of 100 %; they saw this split 11 times during the periods of 1971 through 1999. They have received numerous awards and were ranked 5th in Fortune magazine’s “Global Most Admired All-Stars” as the third most admired company in America (Wal-Mart, 2008).

Wal-Mart
…show more content…
The ratio of current assets to current liabilities was 0.8 and 0.9 for 2008 and 2007. Wal-Mart has a working capital deficit because they use their cash from funding operations efficiently and they provide returns to shareholders through stock repurchase and the payment of dividends. Based on Wal-Mart’s financial statement their long term debt is as follows:
(Amounts in millions)
Interest Rate Due by Fiscal Year 2008 2007
0.310 – 11.750%,
LIBOR less 0.10% Notes due 2009 $ 4,688 $ 4,372
1.200 – 6.875% Notes due 2010 4,584 4,614
5.250% Notes due 2036 4,487 4,465
0.1838 – 10.880% Notes due 2011(1) 3,511 3,292
6.500% Notes due 2038 3,000 —
0.750 – 7.250% Notes due 2014 2,982 2,970
1.200 – 4.125% Notes due 2012 2,481 2,426
5.750 – 7.550% Notes due

More about Wal-Mart Financial Analysis

Open Document