Question

This is a company research assignment. I chose Walmart.

1. Search for Walmart's Financial statement either 2017 or 2018 on google and Briefly describe how you will evaluate this company’s performance.

2. How is the company doing financially? How do you know?

3. Which financial statement do you think provides the best information for investors?

Answer 1

ANS 1. I WOULD MAKE SEGMENTS OF THE OPERATIONS OF THE WALMART AND WOULD ANALYSE THE PERFORMANCE OF THE FIRM IN DIFFERENT SEGMENTS. APART FROM THIS, THE VOLUME OF SALES AND OPERATING INCOME WOULD BE EVALUATED FROM THE INCOME STATEMENTS OF THE FIRM. THE EVOLUTIONS IN THE OPERATIONS OF THE COMPANY MAY ALSO HELP TO EVALUATE THE COMPANY'S PERFORMANCE.

ANS 2. FINANCIALLY, COMPANIES ' NET SALES ARE GROWING FASTER THAN OPERATING EXPENSES. THE NET SALES INCREASED TO $495,761 IN FISCAL YEAR 2018 FROM 481,317 IN 2017. ALSO, THEIR EXPENSE MANAGEMENT SYSTEM HAD A POSITIVE IMPACT ON THE NET SALES PERCENT. THEIR EXPENSES, OPERATING, ADMINISTRATIVE AND SELLING, DECREASED FROM 5% TO 4.6%.TOTAL CAPITAL EXPENDITURE REDUCED FROM $10,619 TO $10,051. THIS WAS DUE TO GROWTH IN SALES AND COMPARABLE STORES AND ALSO E-COMMERCE.

WE KNOW THIS BY THE COMPARATIVE INCOME AND EXPENDITURE STATEMENTS THEY PROVIDED AT THE END OF FISCAL YEAR 2018.

ANS 3. FOR INVESTORS THE STATEMENTS IMPORTANT ARE TRADING AND PROFIT AND LOSS STATEMENT, BALANCE SHEET, CASH FLOW STATEMENT AND RATIO ANALYSIS OF THE FIRM.