Financial Statement Analysis of Amazon, Walmart, and Big Lots

This report provides a detailed financial analysis of Amazon, Walmart, and Big Lots, assessing their financial health. The analysis examines liquidity, profitability, capital structure, efficiency, and market value. Amazon demonstrates strong profitability and efficiency, while Big Lots excels in capital structure. Walmart's liquidity position appears weaker. The report references financial statements from 2018 and uses industry benchmarks to evaluate each company's performance. Amazon's high return on equity and efficient asset utilization position it favorably. The report concludes with a comparative analysis of the three companies, highlighting their strengths and weaknesses, and suggesting that Amazon is a good investment option if it improves its fund acquisition. The analysis incorporates references to financial statements and relevant literature to support the findings.

Running Head: REVIEW THE OFFICIAL FINANCIAL STATEMNTS
1
REVIEW THE OFFICIAL FINANCIAL STATEMNTS

REVIEW THE OFFICIAL FINANCIAL STATEMNTS 2
Contents
Analysis......................................................................................................................................3
References..................................................................................................................................5

REVIEW THE OFFICIAL FINANCIAL STATEMNTS 3
Analysis
In this report a detailed financial analysis of the three companies namely Amazon,
Wal-Mart and Big Lots the American multinational companies have been undertaken to
review the financial health of all the three companies simultaneously.
The liquidity position of the Big lots and the Amazon is sound in comparison ot the
Wal-Mart. This reflects that the position of the Wal-Mart is low as the current assets are not
effectively utilised and the current liabilities are infused in the organization more. Though
Amazon has not reached the industry benchmark yet the operations of the business are
smooth and sound. The quick ratio however is low and Amazon must improve to grab the
greater market share. Overall the position of the company in terms of the liquidity is sound in
case of the Big lots (Robinson, Henry, Pirie & Broihahn 2015).
The profitability category suggests how profitable the business is after making use of the
funds and the assets. The current profitability position of Amazon is the best for the investors
as the net profit tends to be around 4% which is fine within such industry, the return on
equity being 38% is a huge return to the investors in comparison to Wal-Mart at 14% and Big
Lots is still ahead of Wal-Mart at 27%. The overall operating margin of the company is
within the range of 4% to 6%. Hence, Amazon beats the two other companies.
The capital structure of the Big Lots is preferable as the financial leverage is paid with the
speed of 43 times, the same being of the Amazon and Wal-Mart at 8.77 times, the debt used
to finance the asset is 0.18 and the balance of the debt and equity is 0.54 (Wal-Mart, 2018).
In terms of the efficiency Amazon beats the other two in inventory collection and total
utilisation of the asset at the productive level. 36.20 days are being used to realize the cash
and 1.58 times the sales are generated because of the assets. Big Lots believes in the cash
sales only for the particular year (Amazon, 2018).
The market value of the company suggests Amazon to be on top most position in providing
the return to the shareholders at 0.38 in comparison to Wal-Mart at 0.14 and Big Lots at 0.27.
If the Amazon improves in terms of the acquisition of the funds it is a good to go company
and the best option for the investors.

REVIEW THE OFFICIAL FINANCIAL STATEMNTS 4
References
Amazon, (2018). Financials. Retrieved from http://financials.morningstar.com/balance-
sheet/bs.html?t=BIG&region=usa&culture=en-US
Gibson, A. M. (2016). Reading and Interpreting a Financial Statement. John Wiley & Sons.
Robinson, T. R., Henry, E., Pirie, W. L., & Broihahn, M. A. (2015). International financial
statement analysis. John Wiley & Sons.
Wal-Mart, (2018). Income Statement. Retrieved from
https://financials.morningstar.com/income-statement/is.html?
t=0P000005UH&culture=en&ops=clear