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%, over 2009 figures, to nearly 422 billion (USD). Operating income demonstrates a steady incremental increase reflective of consistent management and cost control practices. Lastly, the income from continuing operations reflects a consistent incremental increase with each passing year.
Based upon a general overview of the Walmart income statement, it appears that the firm is financially healthy and consistently capturing accounting profits. Review of the accompanying notes reveals that Walmart does not include the costs of their warehouse and distribution facilities in their cost of sales, therefore benchmarking their gross profit margin to competitors may present a skewed view of the firm (Walmart, 2012, p. 36).
2009-2011 Yearly Analysis
Initial reviews of net sales highlights that retail receipts are increasing; yet membership, and other income, is waning. Net sales comprise less than 1% of overall revenues, however the decline may be indicative of changing customer buying habits or some other shift in the market. In 2009, membership income totaled 3.167 billion (USD) of revenues, but has declined nearly 8.5% to 2.897 billion (USD) in 2011.
Wal-Mart is also deemed to be a company that greatly mistreats and discriminates against its employees but there has apparently been no reliable empirical data to back that up (Van Riper, 2008). The article concludes by conceding to some Wal-Mart critics. First, Wal-Mart cites Ohio University professor Richard Vedder, who points out that Bureau of Labor Statistics Data holds that Wal-Mart's wage structure lags behind the retail sector as a
Indeed, the retailer's current ratio has not exceeded 1.0 in recent times. It is however important to note that given its profitability, it is likely that Wal-Mart converts its inventory into cash at a rate that is much faster than that of its peers in the same industry. For this reason, it is highly unlikely that in the normal course of doing business, the retailer could encounter challenges paying
The Price-Sensitive Affluents, Wal-Mart has learned (Wal-Mart Annual Reports) is more interested in finding an exceptionally good deal and not necessarily concerned about the shopping experience. This is particularly true as one of the strongest factors influencing the execution of their strategy, the emerging global recession during this timeframe, takes hold. Again as with the Price Value Shopper and the paradoxical purchasing patterns of the Brand Aspirational segment show,
Wal-Mart Corporation Mission and Vision Statement Analysis Linking Wal-Mart's Mission and Vision to Their Strategic Goals ands Objectives Assessing the Link Between Wal-Mart's Financial Performance And Its Strategic Goals Wal-Mart Competitive and Marketing Analysis Wal-Mart Marketing Analysis Selecting An Appropriate Strategy (low cost, differentiation or niche) For Maximizing Organization's Return on Shareholders Potential Wal-Mart Merger & Acquisition Strategy Incentive and Reward Strategies for Wal-Mart Employees Evaluating How Current Strategies Define Ethicacy Levels at Wal-Mart Wal-Mart Ratio Analysis Income Statement Analysis,
WalMart Corporation Mission and Vision Statement Analysis Linking Wal-Mart's Mission and Vision to Their Strategic Goals and Objectives Assessing the Link Between Wal-Mart's Financial Performance And Its Strategic Goals Wal-Mart Competitive and Marketing Analysis Wal-Mart Marketing Analysis Potential Wal-Mart Merger & Acquisition Strategy Incentive and Reward Strategies for Wal-Mart Employees Evaluating How Current Strategies Define Ethicacy Levels at Wal-Mart Wal-Mart Ratio Analysis Income Statement Analysis, 2007 -- 2012 Analysis of WalMart Corporation Mission and Vision Statement Analysis All internal systems, processes, external
Wal-Mart from a couple of perspectives. First it analyzes the legal, social and economic environments. The second part analyzes Wal-Mart's managerial, operational and financial issues. Particular attention is paid to project management, contingency planning and staffing needs. External Environment Analysis. Wal-Mart competes using a cost leadership strategy. It promises low costs to consumers and backs this up by leveraging its exceptional purchasing power and its efficient inbound logistics system. In the
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