Walmart Financial Report Analysis

I. INTRODUCTION

Wal-Mart Stores, Inc. operates retail stores in various formats around the world and is committed to saving people money so they can live better. They earn the trust of their customers every day by providing a broad assortment of quality merchandise and services at everyday low prices ("EDLP"), while fostering a culture that rewards and embraces mutual respect, integrity and diversity. EDLP is their pricing philosophy under which they price items at a low price every day so that their customers trust that our prices will not change under frequent promotional activity. Their focus for Sam's Club is to provide exceptional value on brand-name merchandise at 'members only' prices for both business and personal use. Internationally, they operate with similar philosophies. Their fiscal year ends on January 31. (Source: Wal-Mart report 2009)

  II. ANALYSIS: WAL-MART FINANCIAL STATEMENT ANALYSIS

Wamart focuses on three segments: Walmart U.S, International and Sam’s Club with the sales percentage ranges from the highest 63.7%, 24.6% to 11.7% respectively.
  1. Three items on the income statement that would be important to an investor:
Total sales in fiscal 2009 increased 7.2%, from $374.3 billion in 2008 to $401.2 billion. Those increases resulted from Wal-Mart’s global store expansion programs, comparable store sales increase and acquisitions (Wal-Mart 2009 annual report, page A-4).
Sales at Wal-Mart US, the largest segment of its business, accounted for 63.7% of total net sales with the growth of 6.8%. This segment is remaining stable and yearly increased 6% - 7% for 3 continuing years. This net sales growth resulted from comparable store sales increases of 3.2% in 2009 and 1.0% in 2008, in additional to Wal-Mart’s continued expansion activities. Strength in the grocery, health and wellness and entertainment categories as well as strong seasonal sales throughout the year also contributed to the fiscal 2009 net sales increase (Wal-Mart...