Reference no: EM131523771
Assignment: WAL MARTSTORES INC - Financial Analysis Project
Analysis Questions
Profitability questions
1. Calculate the Gross Profit rate for 2015, 2016 and 2017? What trend do you see and what does it mean?
2. Calculate the Profit Margin rate for 2015, 2016, and 2017? What trend do you see? How does it compare to Gross Profit rate over the years?
3. What segments (locations) make up total revenues? Which ones are growing in sales, which are declining? (see Notes to Financial Stmts - Business Segment Data)
4. Calculate the Return on Assets and Return on Equity (Common stock) for 2017.What do the rates tell about company's returns?
5. Calculate the Earnings Per Share for 2016 and 2017. How do the two years compare?
Liquidity questions
6. Calculate the Current Ratio for 2016& 2017. What does it indicate and what trend do you see?
7. Calculate the Inventory Turnover and Days Sale in Inventory for 2017. What do they tell about Inventory management?
8. Which method of Inventory and Cost of Goods Sold valuing does the company use? (FIFO, LIFO or Average) (see Notes to Financial Stmts - Accounting policies)? How does used the method effect the Net Income compared to other methods?
9. Calculate Accounts Receivable Turnover and Collection days for 2017. What does it tell about company's collections?
10. How much was Allowance for Doubtful Accounts for 2017?
How does the company estimate allowances for Bad Debt? (seeNotes to Financial Stmts)
Solvency Ratios
11. Calculate the Debt to Asset ratio for 2016 and 2017. What does it tell about the long term survival of the company?
12. What is the company's percentage of PPE (Plant Assets) against total assets? What method of depreciation does the company use? (see Accounting Policies)
13. Did the company purchase Treasury shares in 2017? If yes, how much and how many shares?
14. Did the company issue Dividends in 2017? If yes, for how much?
15. Calculate the Free Cash Flow ratio for 2017. What does it indicate?
16. How would you interpret the company's cash flows from Operating, Financing, and Investing sections?
Attachment:- Financial-Analysis-Project.rar