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ACC 205 Week 5 Final paper Wal-Mart Financial Statement Analysis

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ACC 205 Week 5 Final paper
Wal-Mart Financial Statement Analysis
ACC 205 Week 5 Final Paper (Financial Statement anlaysis)
Focus of the Final Paper



 !
"#
!
Company Overview
$%
&&&
Horizontal Analysis of Income Statement and Balance Sheet
'"
("(

Ratio Analysis
)
(()
)
*&()

Recommendation
+&
&&

Writing the Final Paper
,-'
.-
!/
01

1
(2-
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7-

The following business analysis considers the financial health,
technological advantages, the effects of globalization, and a
benchmarking analysis of Wal-mart in comparison with comparable
organizations in their industry segments using United States companies.
Competitors in the supercenter market are Target and Meijer, whereas
Costco is a key competitor in the member warehouse-style market. Only
Costco (Costco Annual Report, 2011) is currently competing in the
international marketplace.
Financial Health
Wal-Mart Stores Incorporated (WMT), Target Corporation (TGT), and
Costco Wholesale Corporation (COST) are public held companies with

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stock traded on the New York Stock Exchange (NYSE) and required to
file an Annual Report on forms 10-K annually with the Security and
Exchange Commission (SEC) (Stock Quotes, 2012). Meijer’s is a family-
owned private company and not subject to SEC filings of their
performance and is excluded from analysis because their financial data
is not available (At 75, Meijer family still controls retailers destiny, 2009).
Income Statement
The latest income statements submitted by Wal-Mart, Target, and Costco
to the Security and Exchange commission all reported millions in profit
(Stock Quotes, 2012). Wal-Mart’s consolidated net income for its fiscal
year ending January 31, 2012 is $15,699 million (Walmart Annual
Report, 2012), which equates to a $4.54 net per share income, and
resulted in $1.46 paid in dividends for each common share (Walmart
Annual Report, 2012) ). By comparison, Costco latest annual report for
fiscal year ending August 28, 2011 reported $1,462 million in profit with a
net income per share of $3.35, and $.89 in per share dividends (Costco
Annual Report, 2011). Target’s annual report for their fiscal year ending
January 28, 2012 is $2,929 million in profit, equaling $4.31 per share,
and yielding $1.15 per share in dividends for stockholders (Target
Annual Report, 2011). Based on the latest income statements for Wal-
Mart, Costco, and Target the best company would be Wal-Mart for
leading in profits, net income per share, and dividends paid per
stockholder. However, Target is a better buy for return on investment
(ROI) based on current stock prices and dividends paid their
stockholders at $.023, which exceeds Wal-Mart’s $.021 per share ROI,
and $.011 for Costco as shown in figure 1 below.
Return on Investment (figure 1)
Cost
per Share Dividends paid
per share Return on Investment
Wal-Mart $ 74.05 $ 1.59 $ 0.021
Costco $ 95.70 $ 1.10 $ 0.011
Target $ 61.97 $ 1.44 $ 0.023

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Anonymous
Outstanding. Studypool always delivers quality work.

Anonymous
Thanks for the help.

Anonymous
<3 it, thanks for saving me time.

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