Assessing Financial Statement

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...