Financial Analysis- Walmart

What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors? •The net income of the company for the current fiscal year is $26,872 million. This year net income has decreased from last year (2013) net income of $27,725 million. The continuous increase in prior years shows the profitability in WalMart. The trend of increase in net income can be seen as below:

Year Operating Income

2010 23,969

2011 25,508

2012 26,491

2013 27,725

2014 26,872

Year EPS Dividend per Share

2010 3.72 1.09

2011 4.181.21

2012 4.53 1.46

2013 5.01 1.59

2014 4.85 1.88

This information is very useful for the investors. Any investor will like to invest in WalMart because it is growing and earning profits. When someone invests in a company they are looking for the return for their investment, therefore they have conducted proper research to make sure they will in fact earn profit. What is the ending balance in stockholders’ equity? Why would a labor union potentially be interested in this information?

•The stockholder’s equity is the amount invested by the stockholders and the retained earnings  belong to the stockholders. The present stockholder’s equity is $76,343 million. There is continuous increase in stockholder’s equity. Increase in the stockholder’s equity of WalMart is as follows: Year Stockholder’s Equity

2010 70,468

2011 68,542

2012 71,343

2013 76,343

2014 76,225

Labor unions are most interested in financial statements and specifically net income and stockholders’ equity. They are interested in stockholders’ equity to assess the security of their wages and increase in wage payments. Copyright © 2013, 2011, 2009, 2008 by University of Phoenix. All rights reserved. Financial Statement Review ACC/561 Version 5

What is the total value of assets? Why would this information be important to a potential creditor? •The total assets of the company show the worth of the company from which the liabilities are to be paid and balance will be available to stockholders. Present total assets of WalMart are $204,751 million, which has continually increased. in the equity of WalMart are shown below:

Year Total Assets

2010 170,407

2011 180,782

2012 193,406

2013 203,105

The information provided in balance reports are used to evaluate a company’s financial performance. Another useful aspect of the reports is that managers are able to communicate with other individuals about how to properly run the company. What is the total cash flow from operation? •The Net operating cash flow has decreased from in operations to $23.26 billion from $25.59 in 2013 and $24.26 in 2012. What financial statement user would find this information most important?

•My personal favorite financial statement is the income statement because it shows both profit and  loss. The income statement is broken down into two sections, operating and non-operating sections. The portion that deals directly with operating is important to investors because it discloses information about revenues that directly relate to business operations. The non- operating portion of the income statement is important because it reports irregular sales or sales that are not directly related to the business. An example of this would be selling equipment or one time purchases of sales. Copyright © 2013, 2011, 2009, 2008 by University of Phoenix. All rights reserved.

Financial Statement Review

ACC/561 Version 5


Five-Year Financial Summary. (2014). Retrieved from

Market Watch. The Wall Street Journal. (2014). Retrieved from

Copyright © 2013, 2011, 2009, 2008 by University of Phoenix. All rights reserved.