Accounting and Financial Management: Analysis of Wal-Mart

Running head: ACCOUNTING AND FINANCIAL MANAGEMENT
Accounting and Financial Management
Name of the Student:
Name of the University:
Author’s Note:
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1ACCOUNTING AND FINANCIAL MANAGEMENT
Table of Contents
Chosen organization for the assignment:.........................................................................................3
Vertical analysis:.............................................................................................................................3
Ratio analysis:..................................................................................................................................5
i. Debt ratio:.................................................................................................................................5
ii. Debt to equity ratio:.................................................................................................................5
iii. Return on assets:.....................................................................................................................6
iv. Return on equity:....................................................................................................................6
v. Current ratio:............................................................................................................................7
vi. Quick ratio:.............................................................................................................................7
vii. Inventory turnover:................................................................................................................8
viii. Days in inventory:................................................................................................................8
ix. Accounts receivable turnover:................................................................................................9
x. Accounts receivable cycle in days:..........................................................................................9
xi. Accounts payable turnover:..................................................................................................10
xii. Accounts payable cycle in days:..........................................................................................10
xiii. Earnings per share:.............................................................................................................11
xiv. Price to earnings ratio:........................................................................................................11
References:....................................................................................................................................12

2ACCOUNTING AND FINANCIAL MANAGEMENT
Appendices:...................................................................................................................................13

3ACCOUNTING AND FINANCIAL MANAGEMENT
Chosen organization for the assignment:
For this assignment, Wal-Mart is chosen as the organization, since it is the global giant
retailer. The main business operations of the organization include the sale of retail and wholesale
products to the customers (Corporate.walmart.com, 2019).
Vertical analysis:
In the words of Bekaert and Hodrick (2017), vertical analysis is a kind of financial
statement analysis where each line item is represented in the form of percentage of base figure
within the statement. The vertical analysis of the income statement and balance sheet statement
of Wal-Mart for the years 2017 and 2018 is represented as follows:
(Source: Financials.morningstar.com, 2019)