Submitted by: Submitted by daisymay
Views: 1052
Words: 350
Pages: 2
Category: Business and Industry
Date Submitted: 05/13/2011 09:36 AM
Checkpoint: Assessing Financial Statement
I have chosen to examine the Wal-Mart Store INC., the CIK# is 0000104169 and 8-K,
and the state is Arkansas for this study of the statement. After going over the statement
this company’s liability was 55,543 million in the year of 2010, and the stockholders’ equity
was 72,648 million. This resulted in a debt/equity ratio of 0.76.
One year later in 2011, Wal-Mart declared stockholders’ equity of 71,247 million, and
the liability of 58,484 million which also resulted in a debt/equity ratio of 0.82. This
proves that this company is maintaining a stable low ratio and by doing so it makes it less
risky for creditors or the investors.
While looking over the financial statements more specifically the debt/ asset ratio, I
have also observed that in 2010 had liability of 55,543 million and asset of 170,407 million
which resulted in a debt asset ratio of 0.33 while in the year of 2011 the liability declared was
58,484 million and asset of 180,663 million which also resulted in a debt asset ratio of 0.32,
once again this proves stability in the debt/asset ratio in these two years by maintaining a
steady rate of 0.33.
In comparison to other like companies Wal-Mart has proven better and consistent
debt/asset ratio. However Wal-Mart has also kept their stockholder’s creditors and customers
informed in their corporate website by keeping them updated with recent activities in the
company.
The strength in the company are that this company disclosures financial statements
this allows investors to view the company’s development. It shows cash flow statements so
investors can see how much cash to follow any accounting differences. Not readily
available by looking at the financial statement. But as you see here in the statement
that Wal-Mart’s current asset exceed its current liability shows it does not have trouble
paying back creditors. But I did not see if this company intends to correct...