INTERPRET FINANCIAL STATEMENTS ANALYSIS WALMART'S FINANCIAL STATEMENTS

Wal-Mart Inc. 1
WAL-MART INC.
Team Members:
Luong Le Hoang Minh
Nguyen Tien Dat
Le Nhat Linh
Nguyen Minh Hoang
INTERPRET FINANCIAL STATEMENTS
Banking Academy of Vietnam
December 22nd, 2018

Wal-Mart Inc. 2
WALMART’S FINANCIAL STATEMENTS ANALYSIS
Table of Contents
I. Introduction to Walmart......................................................................................................................3
1. General Information................................................................................................................................3
2. Ownership:..............................................................................................................................................5
3. Products/services....................................................................................................................................6
II. VERTICAL ANALYSIS............................................................................................................................8
1. ASSETS.....................................................................................................................................................8
2. LIABILITIES AND STOCKHOLDERS’ EQUITY:..............................................................................................9
3. INCOME STATEMENT.............................................................................................................................10
III. HORIZONTAL ANALYSIS...................................................................................................................11
1. ASSETS...................................................................................................................................................11
2. LIABILITES AND STOCKHOLDERS’ EQUITY..............................................................................................12
3. INCOME STATEMENT.............................................................................................................................14
4. CASH FLOWS..........................................................................................................................................16
IV. RATIO ANALYSIS..............................................................................................................................18
1. Short-term activity.................................................................................................................................18
2. Long-term activity..................................................................................................................................19
3. Liquidity.................................................................................................................................................19
4. Debt and Solvency.................................................................................................................................20
5. Profitability............................................................................................................................................20
6. DuPont Analysis.....................................................................................................................................21

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I. Introduction to Walmart
1. General Information
a. Founder:
Wal-Mart was founded by Sam Walton in 1962 in Rogers, Arkansas. Sam Walton was born in
1918 in Kingfisher, Oklahoma. In 1943 he got married with Helen Robson. In 1950, the Waltons
family moved from Newport to Bentonville, in which Sam opened Walton’s 5&10 on the
downtown square. In 1962, Sam opened the first Wal-Mart at the age of 44 in Arkansas.
Although the company was established in 1962, it was incorporated on October 31, 1969.
b. History of development.
In the 1970s, the company was established in 1962, in the first 10 years of development, Wal-
Mart became a publicly traded company. Its first stock was sold at $16.50 per share in 1970. In
1972, the company was listed on the New York Stock Exchange (WMT). With 51 stores, Wal-
Mart records sales of $78 million. At the end of the 1970s, The Wal-Mart Foundation is
established.
In the 1980s, The Walton family establishes the Walton Family Foundation in 1980. Wal-Mart
reaches $1 billion in annual sales, faster than any other company at that time. Wal-Mart has 276
stores and employs 21,000 associates. In 1987, The Company installs the largest private satellite
communication system in the U.S., linking the company's operations through voice, data and
video communication.
In the 1990s, through a joint venture with Cifra, a Mexican retail company, Wal-Mart goes
global, opening a Sam’s Club in Mexico City. In 1992, Sam Walton passed away at age 74, Rob
Walton becomes chairman of the board. Wal-Mart employs 371,000 associates in 1,928 stores

Wal-Mart Inc. 4
and clubs. 1997, Wal-Mart celebrates its first $100 billion sales year. At the end of the 1990s,
Wal-Mart expands into Canada, and China, and enters the United Kingdom with the acquisition
of Asda.
In the 2000s, at the beginning of the decade, H. Lee Scott, Jr. succeeds David Glass as CEO.
Walmart.com is founded, allowing U.S. customers to shop online. Wal-Mart employs more than
1.1 million associates in 3,989 stores and clubs worldwide. Wal-Mart tops the Fortune 500
ranking of America's largest companies. Wal-Mart enters the Japanese market through its
investment in Seiyu. In 2009, Mike Duke becomes CEO. Wal-Mart enters Chile with the
acquisition of a majority stake in D&S S.A. For the first time, Wal-Mart exceeds $400 billion in
annual sales.
In the 2010s, Bharti Wal-Mart, a joint venture, opens its first store in India in 2010. In 2011,
Wal-Mart expands its business into South Africa by acquiring 51% of Massmart Holdings
Limited. In 2015, Doug McMillon succeeds Mike Duke as CEO. The company employs 2.3
million associates worldwide and serves more than 200 million customers each week at more
than 11,000 stores in 27 countries. Rob Walton retires as chairman of the board of directors for
Wal-Mart Stores, Inc. He continues to serve as a director. Greg Penner succeeds Rob Walton as
chairman of Wal-Mart Stores, Inc. In 2016, Wal-Mart opens its Culinary & Innovation Center in
Bentonville to develop and test new and innovative products. Some products of Wal-Mart: Wal-
Mart Pay, Online retailer Jet.com, trains Academy in South Carolina. In 2017, John Furner
becomes Sam's Club's new president and CEO. Wal-Mart acquires Moosejaw, ModCloth,
Bonobos and Parcel. Jet acquires ShoeBuy.com, which is later renamed Shoes.com. Wal-Mart
launches Store No 8, a tech incubator, with a focus to drive commerce forward and transform the
future of retail. Wal-Mart launches Project Gigaton, asking suppliers to help reduce greenhouse