Wal Mart Stores, Inc. Analysis

1124 WordsJul 29, 20165 Pages
Wal-Mart Stores, Inc. Analysis of Annual Report In 1962, Sam Walton opened the first Wal-Mart in Rogers, Arkansas. Little did Walton know that a few years later, his company would be transformed into Wal-Mart Stores, Inc. Wal-Mart officially became a publicly traded company in 1970, selling their first stock at $16.50 per share (Our History, 2016). In today’s society, Wal-Mart serves many different uses across the globe. However, their consumers are typically Americans. It is the one-stop shop for the everyday American citizen. Wal-Mart serves use for consumers to purchase apparel, groceries, appliances, and much more. According to the Full Fortune 500 list for 2016, Wal-Mart is the world’s largest company by revenue (Fortune 500, 2016).…show more content…
Lastly, their third largest liability is Accrued Liabilities at $19,607,000,000. Similar to their assets, their liabilities decreased in comparison to the previous year. Overall, Wal-Mart proves through their balance sheet that they are a profitable company. Depreciation and Inventory Methods Wal-Mart Stores, Inc. uses the straight-line method of depreciation. In order to properly calculate their depreciation, they use this method by estimating the depreciation. First they do the cost of the asset, minus the salvage value, divided by the useful life of the asset. This method shows an equal amount for depreciation expense that is assigned to each year of the assets use (Camp & Waybright, 2015, p. 360). Wal-Mart Stores, Inc. provides in their financial statements that they use a straight line-basis to analyze their land, building and improvements, fixtures and equipment, transportation, and construction in progress. In relation to these items, Wal-Mart also uses LIFO (Last in First Out), when analyzing their inventories. According to their Management’s Discussion and Analysis of Financial Condition and Results of Operations, they use this method because they value their inventories at the lower cost or as determined by the market. However, when it comes to Wal-Mart’s international relation, they use the FIFO method (First in First Out). When it comes to this method, it results in their inventory being valued at the lower cost or market since permanent markdowns are

More about Wal Mart Stores, Inc. Analysis

Open Document