2. MEET
$ The world’s largest public corporation by
revenue
$ The largest private employer in the
world
$ The largest grocery retailer in the
USA
$ The largest toy seller in
America
$ Each year 93% of the
American households do
shopping in some Wal-Mart
store at least once
$ 8,500 stores in 15 different
countries
3. Wal-Mart Stores- sales amounted to
64.3%;
Discount Stores- 1,568 U.S
Supercenters- 1,258 U.S
Neighborhood Markets- 49 stores
U.S
Sam’s Club- sales amounted to 13.0%
525 stores U.S
Is a member only, cash and carry
operations
International- sales amounted to
16.7%
Discount stores- 942
Supercenters- 238
Sam’s Clubs- 71
Neighborhood Market- 37
3 different segments:
4. Stock market information
Most recent price for Wal-Mart stock is $54.87 (Feb./17/2011)
The 12 month trading range is between $46.25 and $55.20
6. Accounting policies:
Revenue Recognition: The company recognizes sales
revenue net of sales axes and estimated sales returns at the
time it sells merchandise to the client.
Cash: The investments with a maturity of three months or
less are considered cash. Also, all debit credit cards process
in less than a week are considered cash.
Inventory: The inventory is recorded in books at its lower
cost with the accounting method “LIFO” (last in-first out).
And the international inventory is valued with “FIFO”
(first in-first out)
Long life assets: PPE and other long life assets are sated
at cost.
7. Common sized income statement
Walmart CVS
Sales $419,654 $96,413
COGS $315,287 $76,156
Gross Margin $106,562 $20,257
Operating expense $81,020 $81,020
Operating income $25,542 $6,165
Miscellaneous income $2,225
Interest expense $2,205
Total other expenses $201
Income before taxes $23,538 $5,629
Provision for income taxes $7,579 $2,190
Net Income $16,389 $3,424
8. Common-sized balance sheet
Walmart CVS Walmart CVS
Cash $7,907 $1,427 4.63% 2.30%
Accounts Receivable, net. $4,144 $4,925 2.43% 7.92%
Inventories $33,160 $10,695 19.43% 17.20%
Other Current assets $3,120 $659 1.83% 1.06%
Total Current Assets $48,331 $17,706 28.31% 28.48%
P.P.E. $99,544 $8,322 58.31% 13.39%
Goodwill $16,126 $25,669 9.45% 41.29%
Other non-cur. Assets $6,705 $10,472 3.93% 16.84%
Total Longterm Assets $122,375 $44,463 71.69% 71.52%
Total Assets $170,706 $62,169 100.00% 100.00%
Current Liabilities $55,561 $11,070 32.55% 17.81%
Total Long-term Liabilities $42,216 $13,399 24.73% 21.55%
Total Liabilities $97,777 $24,469 57.28% 39.36%
Total Shareholders' Equity $72,929 $37,700 42.72% 60.64%
Total Liabilities & Equity $170,706 $62,169 100.00% 100.00%
9. Ratios
Walmart CVS
2010 2009 2010 2009
Working capital -7230.00 -6441.00 6636.00 5237.00
Quick ratio 0.22 0.20 0.57 0.53
Current ratio 0.87 0.88 1.60 1.43
Days sales oustanding 9.51 8.82 7.12 7.58
Receivables turnover 101.27 103.72 19.58 18.09
Days sales
outstanding/receivables
turnover 0.09 0.09 0.36 0.42
Days sales in inventory 38.39 41.38 51.26 48.18
Inventory turnover 9.51 8.82 7.12 7.58
Days sales in
inventory/Inventory
turnover 4.04 4.69 7.20 6.36
Ratio of assets to long-term
liabilities 4.04 3.99 4.64 4.54
Debt-to-equity ratio 1.34 1.39 0.65 0.72
Interest coverage ratio 10.67 10.71
