Walmart Financial

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rneynaqen

Mathematics

Description

The purpose of this assignment is to allow the students an opportunity to complete their financial evaluation of a company using the financial research database Plunkett Research Online. Plunkett Research Online provides in-depth analysis of a company's financials, comparisons to industry averages, a list of top executives, how the company compares to other competitors in terms of revenue, number of employees, market capitalization and other key financial metrics.

Assignment Steps

Resources: Plunket Research Online located in the Week 3 Electronic Reserve Readings; Microsoft® Excel®

Access the the Plunkett Research database in the University Library by following these steps:

  1. Click on the University Library link.
  2. Click "Company Directories and Financials" under Library Resources.
  3. Click "Plunkett Research Online" under Company Directory and Financials.
  4. Review the following "HOW TO USE" videos:
    • Plunkett Research Online Overview
    • How to Export Company and Exec. Lists
    • How to Build-a-Report
    • How to Use Industry Analytics
    • How to Research an Industry
    • How to Use Company Profiles
  5. Click "Research A Company."
  6. Select a company (i.e. Walmart) and input into the Search Box.
  7. Scroll through the search results to choose the correct company.
  8. Click the link to the company profile (in blue).

Review the Company Profile and answer the following questions in Microsoft® Word:

  • What is the Ticker Symbol for the company you have selected?
  • When was the company established?
  • How many employees does it have?
  • What is the NAICS Code?
  • Who is the CEO?
  • Where does the company rank in terms of Total Revenue when compared to its competitors?
  • Where does the company rank in terms of Net Income when compared to its competitors?
  • Where does the company rank in terms of Return on Assets when compared to its competitors?
  • What is the Revenue in 2014 and 2015?
  • What was the Gross Margin in 2014 and 2015?
  • What was the Earnings per Share in 2014 and 2015?

Save the Company Profile as a PDF document.

Compare the 2015 Company Financials to the Industry Averages and export the results into a Microsoft® Excel® document.

Add a new column in your Microsoft® Excel® document titled "Change" and calculate the difference between the company's 2015 financial results and the industry averages.

Explain in 1,050 words how the company you selected compares to the industry averages in terms of financial profitability, liquidity and solvency, and why the difference is important. Also review the financial statements over the last three years, and discuss any positive and negative trends would you report to the company's management.

Submit the calculations as well as the explanation.

At least 3 references

PLEASE USE WALMART

fin571_r9_lta_researching_industry_financial_statistics_week_3.doc

fin571_r9_researching_industry_financial_statistics.pptx.ppt

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Explanation & Answer

Attached.

1
WALMART COMPANY PROFILE
Ticker symbol for Walmart: WMT
Year established: 1969
Number of employees: 2,300,000
NAICS Code: 452910
CEO: C. McMillon
Ranking in terms of Total Revenue: Walmart ranks as number 1 in terms of total revenue
Ranking in terms of Net Income when compared to its competitors: Number 1
Ranking in terms of Return on Assets when compared to its competitors: Number 6
What is the Revenue in 2014 and 2015?
2014: $476, 294,000,000
2015: $485, 651,000,000
What was the Gross Margin in 2014 and 2015?
2014: 24.82
2015: 24.83
What was the Earnings per Share in 2014 and 2015?
2014: 4.90
2015: 5.07

Attached.

Running Head: Researching Industry Financial Statistics

Researching Industry Financial Statistics: Walmart Financials
Name
Course
Professor
Date

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Researching Industry Financial Statistics

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Researching Industry Financial Statistics: Walmart Financials
Introduction
Walmart is a retail company that operates in a very competitive environment. Evaluating
the company’s financial performance using its financial results alone cannot produce sufficient
evidence of the exact performance of the company. It is thus imperative to research the industry
financial statistics where Walmart operates so that a comparison can be done between the
performance of the company and the industry averages for its top competitors to get a true
picture of the performance of the company. This paper seeks to compare the financial
performance of Walmart with the industry averages for top competitors in the 2015 fiscal year to
see where the company stands in the market.
Comparison of Walmart’s Profitability to Industry Averages
Profitability basically means the extent to which a company’s operations yields financial
gains (Brigham & Ehrhardt, 2013). Compared to its competitors, Walmart reported higher
revenues than its competitors. The total revenue for Walmart in 2015 was $485,650,989,056
while the total revenue for the industry averages was $56,945,769,797. Walmart outperformed
the industry by a difference of $428,705,219,259 in total revenue. Therefore, Walmart was more
profitable in revenue generation as compared to the industry averages. With regards to
profitability ratios, Walmart had a higher gross margin ratio of 24.83%, compared to the industry
average of 21.78%, thus exceeding the industry average by a difference of 3.05%. The operating
margin ratio of Walmart was 32.2% while that of the industry average was 4.47%. Walmart
further registered higher profitability in utilization of assets to generate cash. In 2015, the asset
turnover ratio of Walmart was 8.01, compared to the industry average of 4.66, while the return

Researching Industry Financial Statistics

3

on equity for Walmart was 20.76 compared to the industry average of 11.66. Walmart clearly
outperformed its competitors in terms of profitability as the company reported higher results that
the industry average for twelve competitors.
Comparison of Walmart’s Liquidity to Industry Averages
Liquidity denotes the ability of a firm to utilize and convert its assets into cash (AlinEliodor, 2014). A look at the liquidity ratios will provide a good measure of Walmart’s liquidity
in comparison to the industr...


Anonymous
Really helpful material, saved me a great deal of time.

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