Comparison of Financial Statements: Wal-Mart vs IKEA Group

Business Administration 5110 D1

Table of Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

INTRODUCTION
The present study is related with the comparison of the financial statement of the two companies
named as Wal-Mart and IKEA Group, operated in the retail sector. Wal-Mart Company is the
international retail organization that operates a chain of grocery stores, departmental store and
hypermarket across the whole world. Company is situated in
Bentonville, Arkansas, U.S.. On the other hand, the IKEA group is the Swedish-founded
international group that engages in the selling of kitchen appliances, accessories of the home,
ready to assemble furniture and sometime home services. Headquarter of company is in
Leiden, Netherlands. In the given study the comparison of the financial statement is based on the
ratio analysis of both companies. Ratio analysis is the quantitative analysis of the information
stated in the financial statement of the company (Edwards, Schwab & Shevlin, 2015). Along
with this the similarity and differences in the presentation of the financial statement is also
described in the present study.
MAIN BODY
The ratio analysis of the Wal-Mart and IKEA group is given below –
Particulars Formula
Wal-Mart
(2018)
IKEA
(2018)
(Million $)
(Million
EUR)
Sales growth ratio (sales of Y2- Sales of Y1)/Sales of Y1
Sales of 2018 495761 23651
Sales of 2017 481317 20778
increase in sales 14444 2873
Ratio 0.03 0.12
Net profit Ratio net profit/sales*100
net profit 9862 1449
net profit ratio 1.99 6.13
Operating Profit
Margin Ratio Operating Profit/sales*100