Liabilities Total Liabilities Common Equity Total Shareholders’ Equity
? (Simple Cash Flow Statement) 2014 2013 17.76B 121.92B 76.26B 76.26B 120.85B 76.32B 76.34B 117.24B 71.32B 71.32B 2012 16.39B Net Income before 16.7B Extraordinaire Net Operating Cash Flow Capital Expenditure Net Investing Cash (12.3B) Flow Net Financing Cash Flow Free Cash Flow 10.14B (11.02B) (13.12B) 23.26B 25.59B 24.26B (12.9B) (13.51B) (12.61B) (16.61B) (11.97B) (8.46B) 12.69B 10.75B Assets Analysis
Total assets of Wal-Mart have reached more than 204 billion but the asset of 2014 grows slowly. In 2013, the asset appropriately increased 5%, however it keeps stable in 2014. The reason might be the majority are non-current assets which cannot grow rapidly. Some Account receivable in both 2014 and 2013 has turn into bad debts, the company need to takes measures to prevent this loss.
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Liability and Equity Analysis
Generally speaking, in terms of the whole Statistics and data, the Wal-Mart performance on simple balance sheet is relatively stable, and the most of them increased slightly year by year like total liabilities, accounts payable and total Assets. These data conform to the Wal-Mart situation for Wal-Mart is at mature period and its industry has also been relatively stable stage.
Income and Expense Analysis
The sales revenue and cost of goods sold both increased obviously and the gross income had a little increase in 2014. However, the net profit of 2014 decreased more than 1 billion compared with 2013. SG&A expense, interest cost and tax expense of 2014 is paid more than 2013 so that there was less profit reserved. In order to obtain more profit, the management cost and selling expense need to be decreased.
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Profitability Analysis:
Wal-Mart Profitability Capacity Indicators Sales Gross Profit Margin Sales Net Profit Margin 3.62% Return on assets Return on equity 8.37% 22.01% 3.63% 8.33% 22.27% 3.36% 7.85% 21.01% 2012 24.98% 2013 24.83% 2014 24.82% ? Sales Net Profit Margin Analysis:
In 2012-2013, Wal-Mart's sales gross profit margin decreased slightly. Its net profit margin increased by 0.11%, indicating that expenses for this period decreased, probably because of the improved management efficiency. While in 2013-2014, its net profit margin was declined. And from the income statement, it can be seen that Wal-Mart pay higher interest and taxes than 2013.
? Sale Gross Profit Margin Analysis :( unit: all numbers in thousands) Gross profit Sales Revenue 2012 111,516,000 466,509,000 2013 116,354,000 468,651,000 2014 118,225,000 476,294,000 From 2012-2014, there was a slightly downturn in the Wal-Mart’s sales gross profit margin, however, gross margin and sales revenue increased steadily. It can be concluded that total costs of sales have a rising trend.
? Return on Asset Analysis: ( unit: all numbers in thousands) Total assets 2012 204,751,000 6
2013 203,105,000 2014 193,406,000 From 2012-2014, the return on assets (ROA) was stable, although it had a slight downward trend. It was mainly due to the gradual rise in total assets.
? Return on Equity Analysis:
From the above Wal-Mart profitable indicators table, it can be summarized that the return on equity ratio remained stable at around 21%, which indicates the company achieve a good income investments.
In summary, in those three years, Wal-Mart's profitability had a slightly drop trend, and costs of sales are on the rise, which may due to the rise in prices. In addition, the total assets increased, but the ROA has declined in 2014. As a result, Wal-Mart should focus on improving the efficiency of assets. To conclude, it realized a good return on investment.
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Operating Capacity Analysis:
Wal-Mart Operating Capacity ratios Indicators: Receivable turnover rate Inventory turnover rate Total assets turnover rate
? Receivable Turnover Analysis:
Receivable turnover of Wal-Mart decreased in the next two years compared with the 2012 year, but it still kept high level at approximately 70%, which illustrated the high speed of receiving creditors, and the high level of management efficiency and standards, low bad debts, and fast cash flow. In a word, Wal-Mart is in the absolute superiority when it comes to the receivable turnover rate.
? Inventory Turnover Analysis:
From 2012 to 2014, the inventory turnover rate of Wal-Mart slightly declined, but still kept at around 8. Generally speaking, the faster inventory turnover is, the lower level of inventory occupies and the stronger the flow rate. It can show that the fast speed of the company’s capability to convert inventory to cash and accounts receivable, which is helpful to enhance their short-term solvencyand profitability.
? Total assets turnover analysis:
Wal-Mart's turnover rate of the total assets of those three years was basically stable at around 2.3. In general, the higher the rate of total assets represents the faster business
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2012 75.28 2013 69.32 2014 71.33 8.23 8.04 7.98 2.3099 2.3639 2.3360