Fin515

Company Overview

Wal-Mart is US based multinational retail corporation engaged in operations of discount department stores and warehouse stores. The company was founded by Sam Walton on July 2, 1962 in Rogers, Arkansas, US. The company operates worldwide and is headquartered at Bentonville, Arkansas, US. Walton family holds 52% of the share of the company. Gregory B Penner is the Chairman of the company and Doug McMillon is the President and CEO. The company had 11,526 locations around the globe on September 30, 2015. The primary products of the company are apparel and footwear, electronics, supermarket, hyper market, discount store, ecommerce, etc. Wal-Mart is the world’s largest company by revenue. The revenue of the company stood at $485.651 billion in the year 2014 with a net income of $16.363 billion. The company has total assets of $203.706 billion. The company is the largest private employer of US employing more than 1.4 million employees and more than 2.2 million employees worldwide. The ticker symbol of the company is WMT and the official website is www.walmart.com. The logo of the company is ‘Save Money. Live Better’.

Financial Analysis

Ratio Analysis from the financial statements of past three of the company is conducted to analyze the financial position of the company. The ratios are compared with the ratios of industry to find out the areas in which the company is doing well as well as areas that management should look at. Vertical and horizontal analysis of past three years is also done. The results revealed are discussed hereunder.

Ratio Analysis

Liquidity Ratios: Current ratio of the company stood at 0.97, 0.88 and 0.83 for the year ended 2015, 2014 and 2013 respectively. The ratio for the industry stood at 1 which shows that the ratio for the company stood close to the industry ratio. Although the idle current ratio is 2 and the ratio of the company is far below it. The ratio of the company has improved during last three years. The ratio...