A financial ratio quarterly Trend Analysis of Walmart (with comparison to Costco)
A financial ratio quarterly Trend Analysis of Walmart (with comparison to Costco)
A financial ratio quarterly Trend Analysis of Walmart (with comparison to Costco)
Order Description
SECTION A- COMPUTATIONS
using the excel template provided, compute ratios for four most recent quarters of your chosen company.
SECTION B- FINANCIAL TREND COMPARISION
for each of these 5 categories; liquidity, asset utilisation, profitability, debt utilisation and market values, write a paragraph regarding the trend and implications about the future health of the company.
SECTION C- COMPARATIVE FINANCIAL ANALYSIS OF THE COMPANY COMPARED TO THE INDUSTRY PERFORMANCE
a paragraph on company comparative performance to the industry average for most recent year.
SECTION D- COMPARATIVE SWOT ANALYSIS FOR YOUR COMPANY
SECTION E- BUSINESS ETHICS
SECTION F- CONCLUSION AND DECISIONS
Overview
After completing your MBA degree, you will very likely be in a position to help increase the
fundamental value of your company. All the courses of the MBA have been designed to give you
the financial tools and analytical skills required to be successful financial managers. In FIN 6406, a
research project has been designed to help prepare you for this challenge in the workplace. In this
application assignment, you will utilize aspects of what you have learned to produce a financial
quarterly trend analysis of one company. This is a group project and one report per group is to be
submitted.
For this research project, you will select a publicly traded company to investigate over the course of
the following weeks. You may choose a company where you are currently employed, a company
where you might seek employment, a company you’ve read about, or a company that piques your
interest. For instance, you may research Starbucks (stock symbol SBUX) because you drink a latte
every day, Toyota (TM) because you drive their cars or have been following the news, or Amazon
(AMZN) because you are interested in their electronic reading experience, the Kindle.
You will research sources, such as Yahoo! Finance and MSN Money, for the financial highlights
and trading information on your selected company. Using these sites, you will compute the ratios
for the four most recent quarters of your chosen company. An Excel template will be provided for
you to compute these ratios.
In Week 7, you will complete the research project by submitting the final results in a formal report.
Create your report as a Word document, which you will then attach. This report will include your
ratio computations, a financial trend comparison, an industry-performance comparative financial
analysis, and a comparative SWOT analysis. Most important, you will make decisions about what
you as an investor have to lose or gain by investing in your selected company. You will also
assume the role of a member of the Board of Directors of a bank that will consider whether to
extend the company a line of credit. In this culminating activity, the knowledge you have gained
and the skills you have practiced will be applied in a report similar to those you will eventually
execute on a regular basis.
The Guidelines for this Research Project follow.
Start the project report by providing the following information necessary for your research:
1. The name of the publicly traded company you will investigate
2. A brief paragraph (25 – 50 words) describing why you chose that particular company
3. The sources you used to research the financial health of the company and its competitors
Then use the Excel spreadsheet posted in the Content section of Blackboard to input quarterly
financial data for your chosen company. Produce a report which includes an analysis of the
financial position of the company. Create your report as a Word document by copying the Excel
spreadsheet into the document. This report will include your ratio computations, a financial trend
comparison and an industry-performance comparative financial analysis.
WAL-MART STORES, INC. (WMT)
Exchange New York Country UNITED STATES Industry General Retailers Market Cap 235,421.90 Scale 1,000,000
CUSIP 931142103 Sedol 2936921 ISIN US9311421039 Shares Outstanding 3,220.55
Interim Balance Sheet
“04/30/2015
USD” “01/31/2015
USD” “10/31/2014
USD” “07/31/2014
USD” “04/30/2014
USD
restated”
Assets
Cash & ST Investments 7,759.0 9,135.0 6,718.0 6,184.0 –
Receivables (Net) 5,813.0 6,778.0 6,091.0 6,146.0 6,096.0
Total Inventories 46,310.0 45,141.0 51,501.0 45,451.0 45,315.0
Prepaid Expenses – – – – –
Other Current Assets 2,251.0 2,224.0 1,531.0 1,851.0 2,264.0
Current Assets – Total 62,133.0 63,278.0 65,841.0 59,632.0 59,687.0
Investment In Unconsolidated Subsidiaries 0.0 0.0 0.0 0.0 0.0
Property Plant & Equipment – Net 115,685.0 116,655.0 117,492.0 118,723.0 117,643.0
Property Plant & Equipment – Gross 183,493.0 182,634.0 183,126.0 183,524.0 180,260.0
Less: Accumulated Depreciation 67,808.0 65,979.0 65,634.0 64,801.0 62,617.0
Other Assets 22,929.0 23,773.0 24,556.0 25,630.0 25,187.0
Intangible Assets 17,531.0 18,102.0 18,888.0 19,758.0 19,515.0
Total Assets 200,747.0 203,706.0 207,889.0 203,985.0 202,517.0
Liabilities
Accounts Payable 37,224.0 38,410.0 39,656.0 36,828.0 36,347.0
ST Debt & Current Portion of LT Debt 7,267.0 6,689.0 11,195.0 8,476.0 7,083.0
Other Accrued Expense 18,685.0 14,198.0 18,773.0 18,237.0 17,807.0
Income Tax 1,707.0 1,021.0 383.0 511.0 1,966.0
Other Current Liabilities 23,426.0 19,152.0 20,326.0 21,337.0 22,525.0
Current Liabilities – Total 69,624.0 65,272.0 71,560.0 67,152.0 67,921.0
Long Term Debt 42,964.0 43,692.0 44,487.0 45,699.0 48,233.0
LT Debt Excl Capitalized Leases 38,867.0 41,086.0 41,720.0 43,004.0 45,491.0
Capitalized Lease Obligations 4,097.0 2,606.0 2,767.0 2,695.0 2,742.0
Deferred Taxes 8,169.0 8,805.0 7,789.0 8,311.0 8,164.0
Deferred Taxes – Credit 8,169.0 8,805.0 7,789.0 8,311.0 8,164.0
Deferred Taxes – Debit – – – – –
Other Liabilities 0.0 0.0 0.0 0.0 0.0
Liabilities – Total 120,757.0 117,769.0 123,836.0 121,162.0 124,318.0
Shareholders’ Equity
Non-Equity Reserves 0.0 0.0 0.0 0.0 0.0
Minority Interest 3,416.0 4,543.0 4,944.0 5,077.0 5,111.0
Preferred Stock 0.0 0.0 0.0 0.0 0.0
Preferred Stock Non-Redeemable 0.0 0.0 0.0 0.0 0.0
Preferred Stock Redeemable 0.0 0.0 0.0 0.0 0.0
Common Equity 76,574.0 81,394.0 79,109.0 77,746.0 73,088.0
Common Stock 323.0 323.0 323.0 323.0 323.0
Capital Surplus 2,354.0 2,462.0 2,223.0 2,208.0 2,111.0
Other Appropriated Reserves – – – – –
Retained Earnings 82,492.0 85,777.0 80,814.0 77,172.0 73,366.0
Less: Treasury Stock – 0.0 – – –
Total Shareholders Equity 76,574.0 81,394.0 79,109.0 77,746.0 73,088.0
Total Liabilities & Shareholders Equity 200,747.0 203,706.0 207,889.0 203,985.0 202,517.0
Common Shares Outstanding 3,227.0 3,228.0 3,227.0 3,227.0 3,230.0
COSTCO WHOLESALE CORPORATION (COST)
Exchange NASDAQ Global Select Market Country UNITED STATES Industry General Retailers Market Cap 63,721.30 Scale 1,000,000
CUSIP 22160K105 Sedol 2701271 ISIN US22160K1051 Shares Outstanding 439.49
Annual Balance Sheet
“08/31/2014
USD” “09/01/2013
USD” “09/02/2012
USD
restated” “08/28/2011
USD” “08/29/2010
USD”
Assets
Cash & ST Investments 7,315.0 6,124.0 4,854.0 5,614.0 4,750.0
Cash 5,738.0 4,644.0 3,528.0 4,009.0 3,214.0
Short Term Investments 1,577.0 1,480.0 1,326.0 1,605.0 1,536.0
Receivables (Net) 1,148.0 1,201.0 1,026.0 965.0 884.0
Inventories – Total 8,456.0 7,894.0 7,096.0 6,638.0 5,638.0
Raw Materials – 0.0 – 0.0 0.0
Work In Process – 0.0 – 0.0 0.0
Finished Goods – – – 6,638.0 5,638.0
Progress Payments & Other 8,456.0 7,894.0 7,096.0 0.0 0.0
Prepaid Expenses – – – – –
Other Current Assets 669.0 621.0 550.0 489.0 436.0
Current Assets – Total 17,588.0 15,840.0 13,526.0 13,706.0 11,708.0
Long Term Receivables 0.0 0.0 0.0 0.0 54.0
Investment In Unconsolidated Subsidiaries 0.0 0.0 – 0.0 357.0
Other Investments 0.0 0.0 0.0 64.0 65.0
Property Plant & Equipment – Net 14,830.0 13,881.0 12,961.0 12,432.0 11,314.0
Property Plant & Equipment – Gross 22,675.0 21,022.0 19,546.0 18,368.0 16,360.0
Land 4,716.0 4,409.0 4,032.0 3,819.0 3,484.0
Buildings 12,522.0 11,556.0 10,879.0 10,278.0 9,096.0
Construction Work In Progress 592.0 585.0 – 269.0 267.0
Machinery & Equipment 4,845.0 4,472.0 4,261.0 4,002.0 3,513.0
Rental/Lease Property – – – – –
Transportation Equipment – – – – –
PP&E – Other – – – – –
PP&E Under Capitalized Leases – – – – –
(Less) Accumulated Depreciation 7,845.0 7,141.0 6,585.0 5,936.0 5,046.0
Accum Depr-Land – – – – –
Accum Depr-Buildings – – – – –
Accum Depr-Machinery & Equip. – – – – –
Accum Depr-Rental/Lease Property – – – – –
Accum Depr-Transport Equip. – – – – –
Accum Depr-PP&E Other – – – – –
Accum Depr-PP&E Under Cap Leases – – – – –
Other Assets 606.0 562.0 653.0 506.0 307.0
Deferred Charges 0.0 0.0 0.0 – –
Tangible Other Assets 606.0 562.0 653.0 432.0 236.0
Intangible Other Assets 0.0 0.0 0.0 74.0 71.0
Total Assets 33,024.0 30,283.0 27,140.0 26,708.0 23,805.0
Liabilities
Accounts Payable 8,491.0 7,872.0 7,303.0 6,544.0 5,947.0
ST Debt & Current Portion of LT Debt 7.0 4.0 0.0 903.0 28.0
Accrued Payroll 2,231.0 2,037.0 1,832.0 1,758.0 1,571.0
Income Taxes Payable – – – 457.0 401.0
Dividends Payable – – – 0.0 0.0
Other Current Liabilities 3,683.0 3,344.0 3,125.0 2,388.0 2,116.0
Current Liabilities – Total 14,412.0 13,257.0 12,260.0 12,050.0 10,063.0
Long Term Debt 5,093.0 5,190.0 1,381.0 1,419.0 2,308.0
LT Debt Excl Capital Leases 5,093.0 4,998.0 1,381.0 1,253.0 2,141.0
Non-Convertible Debt 5,093.0 4,998.0 1,381.0 1,222.0 2,109.0
Convertible Debt 0.0 0.0 0.0 31.0 32.0
Capitalized Lease Obligations 0.0 192.0 0.0 166.0 167.0
Provision for Risks & Charges – 0.0 – 0.0 0.0
Deferred Income 0.0 0.0 0.0 – –
Deferred Taxes 1,004.0 824.0 981.0 334.0 234.0
Deferred Taxes – Credit 1,004.0 824.0 981.0 387.0 244.0
Deferred Taxes – Debit – – – 53.0 10.0
Deferred Tax Liability In Untaxed Reserves – – – – –
Other Liabilities 0.0 0.0 0.0 332.0 270.0
Total Liabilities 20,509.0 19,271.0 14,622.0 14,135.0 12,875.0
Shareholders’ Equity
Non-Equity Reserves 0.0 0.0 0.0 0.0 0.0
Minority Interest 212.0 179.0 157.0 571.0 101.0
Preferred Stock 0.0 0.0 0.0 0.0 0.0
Preferred Stock – Non Redeemable 0.0 0.0 0.0 0.0 0.0
Preferred Stock – Redeemable 0.0 0.0 0.0 0.0 0.0
Common Equity 12,303.0 10,833.0 12,361.0 12,002.0 10,829.0
Common Stock 2.0 2.0 2.0 2.0 2.0
Capital Surplus 4,919.0 4,670.0 4,369.0 4,516.0 4,115.0
Revaluation Reserves 0.0 0.0 0.0 0.0 0.0
Other Appropriated Reserves (76.0) (122.0) 156.0 – –
Unappropriated (Free) Reserves – – – – –
Retained Earnings 7,458.0 6,283.0 7,834.0 7,111.0 6,590.0
Equity In Untaxed Reserves – – – – –
ESOP Guarantees 0.0 0.0 0.0 0.0 0.0
Unrealized Foreign Exchange Gain(Loss) 0.0 0.0 0.0 366.0 116.0
Unrealized Gain(Loss) on Marketable Securities 0.0 0.0 0.0 7.0 6.0
(Less) Treasury Stock – – 0.0 0.0 0.0
Total Shareholders Equity 12,303.0 10,833.0 12,361.0 12,002.0 10,829.0
Total Liabilities & Shareholders Equity 33,024.0 30,283.0 27,140.0 26,708.0 23,805.0
Common Shares Outstanding 437.7 436.8 432.4 434.3 433.5