ACC 205 Financial Statement Analysis

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Wal-Mart AnalysisACC 205 Financial Statement AnalysisFinancial Analysis of Wal-MartConduct a financial analysis of Wal-Mart Stores Inc. using horizontal and ratio analysis based onthe 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'sliquidity, profitability, and solvency ratios. Provide an assessment of Wal-Mart's financialstrengths, weaknesses, and make recommendations for potential investors.Word Count Requirement:5-6 lines.

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AbstractThe purpose is to present the financial analysis of Wal-Mart Stores Inc. To analyze the financialposition data for the year ended Jan 2012 and Jan 2011 has been used.For this purpose thehorizontal and ratio analysis techniques have been used.Company OverviewWMT is the symbol ofWal-Martlisted in NYSE in 1972. However, it was founded in 1962 bySam Walton. It is the largest company in the discount variety storesector;it has around morethan 8000 stores. Its total revenue stood at $464 billion. The total revenue of the company isaround $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 AnalysisComparing two years financial statements or comparing one company’s financial statementswith other company is called horizontal analysis. If you are comparing sales of two years youwill find the difference in sales between two years in % as well as in $.Wal-Mart Stores Inc. WMT%Change%ChangeIncome Statement2012/20112011/2010Allfiguresin billions of dollars30-Jan-1230-Jan-1130-Jan-10Horizontal Analysis for 3 yearsSales$446.95$421.85$408.095.95%3.37%less cost of goods sold$(335.13)$(314.95)$(304.11)6.41%3.56%Gross Profit$111.82$106.90$103.984.60%2.81%Operating expensesSG&A$$$4.80%1.73%

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