Solved: WALMART INC FINANCIAL STATEMENT ANALYSIS REPORT
Background Information. 2 Conformed Name: 2 Standard Industrial Classification: 2 State of Incorporation; 2 Fiscal Year-End: 2 Business Address; 2 Telephone Number: 3 The Stock Market where the Company is listed: 3 Business Operations as discussed on the Cover Page in part I of the company’s 10-K. 3 Walmart’s major competitors: 3 Question 1: Debt Covenant Agreements. 3 Question 2: Impact of New Accounting Pronouncements. 3 Question 3: 4- Information for a fundamental analysis. 4
- Current Recommendation For Your Company’s Stock from Financial Analysts. 5
- Trend in Earnings for Your Company and Future Expectations Voiced By Management 6
- Walmart stock Compared to the Standard and Poor’s Index. 6
- Find or compute a beta for your company. Discuss what the beta indicates about the company. 7
- price/earnings ratio for your company and its two competitors for the last day of its latest fiscal year 10
- Implications of Your Company’s price/earnings Ratio. 11
- Additional income statements Review.. 11
- Balance Sheets And Statements Of Cash Flows. 12
- Measurement Bases. 12
- Dividends Payout For 2018. 13
- Method of reporting cash flows from operating activities. 13
- Difference in net income reported compared to the income statement. 13
- One or two-statement approach. 13
- Review the balance sheets for the company and answer the following questions for the last reporting year: 14
- Does the company disclose any investments? If so, what method is used to account for these investments?. 14
- What inventory cost flow method(s) is the company using?. 14
- Assess the relative working capital position of your company. 17
- Answer the following questions for the last reporting year to assess your company’s utilization of long-term assets. 17
- What items of property, plant, and equipment does the company disclose?. 17
- Comment on your company’s asset-replacement policy. 18
- How is your company’s asset-replacement policy impacting its return on assets ratio?. 18
- Compare your company’s asset utilization ratio with that of its two competitors. 19
- What method(s) of depreciation does your company use?. 19
- What depreciation method(s) do your company’s two competitors use?. 19
- What intangible assets do the financial statements disclose?. 19
- Disclosure. 20
- Impairment in the Value of Reported Intangibles. 21
- Changes in the deferred tax asset and liability accounts. 22
- Changes (if any) in the amounts of income tax carrybacks and carryforwards. 22
- Is the company a lessee of leased property? If so, how does the company account for its leases? 23
- Is the company a lessor in lease transactions? If so, how does the company account for its leases 23
- Does the company report any pension expenses?. 23
- Does the company disclose any other expenses associated with post-retirement benefits?. 24
- Disclosed Components of Stakeholder’s Equity. 24
- Preferred stock shares outstanding. 24
- Treasury shares. 24
- Disclose any stock compensation plans. 25
- Calculate or find the following ratios for your company: 25
- Return on common stockholders’ equity. 25