I He firmly stood by his belief

I have fully researched Walmart stores to evaluate thestrength of the company, its shareholders, employees and future investors inthe company. I feel confident that after reading this summary, you will be ableto make a well-informed decision on future investments with the company. Walmart was founded 1962 by Sam Walton. Sam or Mr. Sam, asmost people referred to him, felt strongly that Walmart should appreciate andrecognize employees and customers as part of the team. Mr. Sam made employeespartners in the company.

  He firmly stoodby his belief that a partnership with employees was what would make Walmartgreat. Being a part of the team would encourage employees to give their openand honest opinion of company decisions. Over the years the company hasexpanded, flourished and remains an innovative driving force to all competitorsof retail, ecommerce, grocery stores and bricks and online stores.”Each week, over 260 million customers and members visit our11,695 stores under 59 banners in 28 countries and e-commerce websites in 11countries. With fiscal year 2017 revenue of $485.9 billion, Walmart employsapproximately 2.3 million associates worldwide.

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Walmart continues to be aleader in sustainability, corporate philanthropy and employment opportunity.”(na, 2017) Analysis Summary Walmart’s company assets are 199,581, the company currently has liabilities of 115,970 and owners’ equity amounts 80,546 at the end of fiscal year. If Walmartwere liquidated at the end of the fiscal year, the shareholders are guaranteedto receive the total shown for owners’ equity because Walmart is stable enough andhas an ample supply of assets to cover company assets, liabilities as well asthe shareholder’s equity amounts for the fiscal year.  Walmart’s noncurrent liabilities for the fiscal year are 51,351 million. The company’s currentratio for the fiscal year is 86%. Walmart’s net cash provided by operatingactivities declined from 2015 to 2016 but then increased from 2016 to 2017exceeding the 2015 level. For the fiscal year, 12 billion was Walmart’s cashflow from operations. This not the same amount as the company’s operatingincome.

The company’s operating income are earning before taxes and interest.It is calculated by subtracting amortization, gross income and operating expenses.Walmart recognizes revenue from service transactionsat the time the service is performed. Generally, revenue from services is classified as a component of netsales in Walmart’s ConsolidatedStatements of Income.Calculated general, administrative, and selling expenses asa percentage of sales for the past three fiscal years. This is calculated as Percentage Change = (Current Year % ?Prior Year %) / Prior Year %.Year End                                 NetSales Revenue                              Percentage2015                            485.65B          9.

31B                                      52.16%increase2016                            482.13B          -3.

52B                                     136.97% decrease                   2017                            485.14B          3.01B                                      161.18%increaseWalmart’s total asset turnover for the fiscal year:Net sales/Total company assets=turnover ratio This ratiowill give investors and stock holders an idea of how stable a company is. A lownumber indicates that the company is not stable, may have some investment issues.The company may not be selling off its inventory in a timely manner.

Unsoldinventory can result in delayed or lost sales.Net sales (millions)/Total company assets (millions)=turnoverratio (percentage)Beginning Assets        199,581Year End Assets         198,825Net Sales                     458,873Turnover Ratio           2.30199,581/458,873=2.29918179 (2.30)Walmart’s prepaid expenses and other current assets accountat the end of fiscal year.Prepaid expenses        1,941Current Assets            198,825Information retrieved from The New York Stock Exchangewebsite. The company report 66,928 million of deferred rent and otherliabilities at the end of fiscal year. This information was retrieved from theMorning Star Financials.

Prepaid rent and deferred rent are different in the aspectthat prepaid rent is paid well in advance. It is accounted for prior to whenthe costs are incurred by the business. Deferred rent is paid in installments overa long period of time. Accrued liabilities are unpaid expenses such as rent,wages and taxes listed under accounts payable a company’s obligation to pay forgoods and services that have been rendered, but payment is not yet due for theservices.

Interest earned from investments or cash that was not initially partof the original investment would generate the interest income that is reportedon the income statement.Walmart stores company earnings per share for the threeyears reported.2015                1.54     2016                1.442017                1.22Walmart stores company net profit margin computed for thethree years reported. 2015    3.5%2016    3.

1%2017    3.1%Walmart stores net profit margin has gone down from 2016 to2016 but the company has managed to maintain the same amount of profit from2016 and 2017. Even though the company suffered a 0.4% decrease, the companyhas invested more money into its workers, training, ecommerce and buildings.

Thoseinvestments would account for much of the net profit the company has spent forthe last year. Walmart is on trend to increase the percentage of profit after aprofit from ecommerce and buildings that have been opened for the last year.Walmart stores reported cash and cash equivalents of 11.

6 billionat the end of the fiscal year. The change in accounts receivable Walmart’s accountsreceivables for the fiscal year thatended in October 2017 was 5.84, in 2016 the company ended with 5.

62 inaccounts receivable. The change in accounts receivable will lower thecompany’s net income and equity of the shareholders.Walmart stores company gross profit percentage computed forthe most recent two years. January 2016               25.

19%                        January 2017               25.35%The company’s gross profit percentage for the most recenttwo years has risen slightly. The change shows that the company has increasedits overall sales and decreased the cost of goods sold slightly. Based on theresearch and information provided to you, I would recommend Walmart stores as aviable, solid and profitable investment for Walton stores. The company hasshown increased and steady growth with plans to row tremendously over the nextseveral years.


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