Wal-Mart Accounting Analysis



Wal-Mart Accounting Analysis

Wal-Mart's Position & Performance

Walmart Stores Inc. is one of the most successful and well-known reatiling store in various formats all around the world. Walmart is established with the aim of providing better life to the people across the globe by saving their money, and the company has well developed the trust of their variety of customers through providing them a wide range of quality products as well as services. 'Everyday low prices' is the main slogan of Walmart and the company fulfills its promise, due to which it has attracted a broad assortment of csutomers across the globe (Reuters, 2012). Currently, the bsuiness operates in more than 10,000 reatil stores under 69 diversified banners in 27 states. Walmart comprises of more than 2 million hard working employees who serve approximately 200 million consumers and associates every week. Thus, the employees of Walmart are the significant asset of the firm that enables the company to deliver on their mission as well as growing their business. So far, the company has been performing quiet well and therefore have a firm standing in the market (Annual Report, 2012).

As far as Walmart's financial review is concern, the company has reported a string financial performance in the most recent annual reporting period. Total sales of Walmart boosted by 5.9 % i.e. to $ 443.9 billion, where the consolidated opearting income increased by 4 % i.e. to $26.6 billion. From the continuing operations associated with Walmart, the diluted earnings per share were $ 4.54 per share, which is an increased amount as previous years' was $ 4.18. The strong financial position of Walmart in the markets is illustrated by their ability to grow, since the company added 52.2 million square feet through 1,160 added units, including acquistions in the United Kingdom and South Africa (Annual Report, 2012).

The business is mainly divided into three key segments namely the Walmart U.S. segment, the Walmart International segment, and the Sam's Club segment. All the three segements are significant for the business, as Walmart U.S. division provided almost 60% of the total sales, Walmart Internation division provided 28% of the total sales, and the Sam's Club provided 12% of the total sales in the most recent annual reporting period i.e. 2012. All the three Walmart segments comprises of variety of formats throughout the world, in addition to restaurants, Sam's club, and online retailing opeartions. These segements operate in various regions of the United States of America as well as Puerto Rico, nad other countries/state of the world (Reuters, 2012).

Analysis of Financial Statements

Finnacial statements of the businesses provides us an in-depth knowledge/information regarding companies' finnacial performance and position in the markets. Therefore, financial statement's analysis is used by the investors, shareholders, creditors, and others in order to analyse the financial condition as well as opearting performance of the bsuiness (Drake & Fabozzi, 2012). There are various techniques and tools of financial analysis such as financial ratio analysis, financial statement analysis, horizontal & veryical ...