Walmart Inc. Financial Analysis

Running head: WALMART INC. FINANCIAL ANALYSIS
Walmart Inc. Financial Analysis
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WALMART INC. FINANCIAL ANALYSIS1
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Company’s Overview.............................................................................................................2
Ratio Analysis........................................................................................................................3
Comparison with Competitor- ‘Costco’.............................................................................6
Strategy and Financing...........................................................................................................6
Ethical and Sustainable aspects of business...........................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

WALMART INC. FINANCIAL ANALYSIS2
Introduction
In the present competitive era, it becomes necessary to have a better understanding of
numeric value disclosed by the company as their status in their annual report. For good
decision-making, an individual requires to analyze the projected figures and to evaluate them,
also considering their competitors (Cao, Chychyla & Stewart, 2015). One of the techniques
that can be used for a company’s financial analysis is through assessing their past and current
performances with the help of ratio analysis. The company chosen here for preparing the
report is “Walmart Inc.,” which is an American multinational retail corporation. The report
aims to analyze the company’s current position by evaluating its historical data. The
discussion makes a thorough analysis of the company by analyzing its financial performance,
strategies, and growth. Further, the impact of the company’s operations and growth on their
ethical and sustainable aspects have been demonstrated to have a clear view while making
decisions. At last, an appropriate recommendation is given to the investors that are based on
financial analysis in making their decision concerning buy, hold, or sells the shares of the
company.
Discussion
Company’s Overview
Walmart Inc. is an American multinational organization that is engaged in its
working under the retail industry. It is founded in the year 1962, and now it has 11,438 stores
across the world. The company was the largest grocery retailer in the year 2019 and approx.
65% of the return came from US operations (Corporate - US, 2020). Walmart Inc. is a joint-
stock company that is registered with the U.S. Securities and Exchange Commission. The
company employs more than 2.2 million people worldwide. In the year 2019, it has revealed

WALMART INC. FINANCIAL ANALYSIS3
its revenue of $514.4 billion on net income of US$ 6.67 billion and remains a leader in
sustainability, opportunity for employment, and corporate altruism.
Ratio Analysis
Ratio analysis is the basis of financial analysis that helps to gain more in-depth insight
into the company’s financial health (Tan, 2017). The financial ratio analysis of Walmart Inc.
is based on the data presented in its annual report for three consecutive years (2017, 2018and
2019) that are discussed below.
Refer to Excel Sheet 1 (WMT, 2020)
Profitability Ratio