Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Overview
Incorporated in 1969, Walmart Inc. is today considered to be the world’s largest retailer. As the company points out on its website, its more than 10,000 stores spread across the world welcome 270 million members as well as customers every week (Walmart, 2018). Currently, the company has more than 2.3 million employees, whom it proudly refers to as associates. In essence, the retailer “operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, drugstores, and convenience stores; membership-only warehouse clubs; e-commerce Websites, and mobile commerce and voice-activated commerce applications” (Bloomberg, 2018).
Gross Margin and Earnings per Share
Gross Margin in 2014 and 2015
According to Heisinger (2009), “the gross profit margin ratio indicates the gross margin generated for each dollar in net sales and is calculated as gross margin (which is net sales – cost of goods sold) divided by net sales” (634).
The gross margin for 2014;
Net sales – cost of goods sold
$476,294 – $358,000 = $118,225
Gross margin ratio for 2014;
Gross margin/net sales
$118,225/$476,294 = 0.25
The gross margin for 2015;
Net sales – cost of goods sold
$485,651 – $365,086 = $120,565
Gross margin ratio for 2015;
Gross margin/net sales
$120,565/$485,651 = 0.25
NB: all dollar figures are in millions
As can be seen above, the gross margin increased by 1.98% within the period under consideration. The gross margin ratio for the two years under consideration, on the other hand, indicates that after factoring in the cost of goods sold, Walmart still has a good proportion of funds remaining from net sales.
Earnings per Share for 2014 and 2015
Earnings per share, as Heisinger (2009) points out, “indicates how much net income was earned for each share of common stock outstanding” (636). For the year 2014 and 2015, Walmart’s EPS was $4.88 and $5.05 respectively (Morning Star, 2018). Essentially, were the company to distribute all of its profits, this is the amount that would be allocated to each of Walmart’s share. The increase is indicative of better profitability in 2015, as compared to 2014.
References
Bloomberg (2018). Company Overview of Walmart Inc. Retrieved from https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=313055
Heisinger, K. (2009). Essentials of Managerial Accounting. Mason, OH: Cengage Learning.
Morning Star (2018). Walmart Inc. WMT. Retrieved from http://financials.morningstar.com/ratios/r.html?t=WMT®ion=usa&culture=en-US
Walmart (2018). About Us. Retrieved from https://corporate.walmart.com/our-story
Walmart's Comprehensive Management Plan: Walmart is a public multinational corporation based in America that deals with chains of large discount department and warehouse stores. Based on the ratings by Forbes Global 2000 list, Walmart is considered as the 18th largest public corporation across the globe and the largest when rated by revenue. In addition to being the largest company in the world, Walmart is the biggest private employer across the globe
Walmart Income Statement Analysis of Wal-Mart Income Statement 2009-2011 Broad Overview Wal-Mart operates retail stores classified into the three categories of Walmart U.S., Walmart International, and Sam's Club. International sales account for 26% of net sales, while Sam's Club is just 11.8% (Walmart, 2012, p. 17). An initial perusal of Wal-Mart's income statement evidences the staggering scale of its retailing operations. In 2011, revenues from both retail receipts and club memberships rose 4.3%,
Walmart's System Of Inquiry A system of inquiry is used to evaluate decision-making, ethical conduct, and problem solving in a business setting (Systems of Inquiry and business ethics). Essentially, the system of inquiry is a structure of questions which the managers of Walmart (in this instance) can use in order to assess that the employees are following Walmart's ethical guidelines. The questions would include an assessment of the employees and their interactions;
Walmart The decision about whether or not to invest in a company must take a number of different variables into consideration. Wal-Mart is the world's largest retailer. It has sales of $446 billion last year and on that it earned $15.699 billion in profit (MSN Moneycentral, 2012). The company has major operations in the U.S., Canada, China, Mexico and also has some operations in Europe. Wal-Mart is not only the number
Walmart Performance Wallie's ratios Discuss Wal-Mart's performance over the three-year period. Wal-Mart's sales growth slumped from 7.3% 2009-2008 to 1% from 2010 over 2009, but has increased again to 3.4% year-end 2011 over 2010 (Wal-Mart, 2012a, n.p.). This is a deep discount from years prior to the 2008 recession, when sales growth was 8.4% and 11.6% year over year in 2008 and 2007, respectably, but considering global macroeconomic conditions since that time, the
Walmart Role of ethics and compliance Compliance and SEC Regulations Evaluation of financial performance Trend of ratios and financial health Wal-Mart Stores, Inc. (WMT) is an American publicly traded retail stores corporation. The operations of Wal-Mart are divided into three segments, namely the Wal-Mart International segment, Wal-Mart U.S., and the Sam's Club segment. Sam Walton was the founder of the company whereby Wal-Mart is the world's largest retail stores chain. Based in Bentonville, Arkansas, the