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ACC 205 Financial Statement Analysis

Methods and techniques for analyzing corporate financial statements

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    Wal - Mart Analysis ACC 205 Financial Statement Analysis Financial Analysis of Wal - Mart Conduct a financial analysis of Wal - Mart Stores Inc. using horizontal and ratio analysis based on the income statement and balance sheet data for the years ending January 2012, 2011, and 2010. Discuss the key changes in sales, expenses, assets, liabilities, and equity. Analyze the company's liquidity, profitability, and solvency ratios. Provide an assessment of Wal - Mart's financial strengths, weaknesses, and make recommendations for potential investors. Word Count Requirement: 5 - 6 lines.

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    Abstract The purpose is to present the financial analysis of Wal - Mart Stores Inc. To analyze the financial position data for the year ended Jan 2012 and Jan 2011 has been used. For this purpose the horizontal and ratio analysis techniques have been used. Company Overview WMT is the symbol of Wal - Mart listed in NYSE in 1972. However, it was founded in 1962 by Sam Walton. It is the largest company in the discount variety store sector; it has around more than 8000 stores. Its total revenue stood at $464 billion. The total revenue of the company is around $187 billion more than its three competitors combined sales revenue for the year 2011. The combined sales revenue of Carrefour SA , Costco and Target is around $277 billion. Horizontal Analysis Comparing two years financial statements or comparing one company’s financial statements with other company is called horizontal analysis. If you are comparing sales of two years you will find the difference in sales between two years in % as well as in $. Wal - Mart Stores Inc. WMT %Change %Change Income Statement 2012/2011 2011/2010 All figures in billions of dollars 30 - Jan - 12 30 - Jan - 11 30 - Jan - 10 Horizontal Analysis for 3 years Sales $ 446.95 $ 421.85 $ 408.09 5.95% 3.37% less cost of goods sold $ (335.13) $ (314.95) $ (304.11) 6.41% 3.56% Gross Profit $ 111.82 $ 106.90 $ 103.98 4.60% 2.81% Operating expenses SG&A $ $ $ 4.80% 1.73%

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