Financial Analysis of Walmart and Target
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Using the following financial information, calculate the current ratio and inventory turnover ratio for Wal-Mart and Target. What does it tell you? Discuss.
Wal-Mart
Balance Sheet Wal-Mart Get Balance Sheet for:
View: Annual Data | Quarterly Data
All numbers in thousands
PERIOD ENDING 31-Jan-05 31-Jan-04 31-Jan-03
Assets
Current Assets
Cash And Cash Equivalents 5,488,000 5,199,000 2,758,000
Short Term Investments - - -
Net Receivables 1,715,000 1,254,000 2,108,000
Inventory 29,447,000 26,612,000 24,891,000
Other Current Assets 1,841,000 1,356,000 726,000
Total Current Assets 38,491,000 34,421,000 30,483,000
Long Term Investments - - -
Property Plant and Equipment 68,567,000 58,530,000 51,904,000
Goodwill 10,803,000 9,882,000 9,521,000
Intangible Assets - - -
Accumulated Amortization - - -
Other Assets 2,362,000 2,079,000 2,777,000
Deferred Long Term Asset Charges - - -
Total Assets 120,223,000 104,912,000 94,685,000
Liabilities
Current Liabilities
Accounts Payable 35,107,000 31,051,000 26,824,000
Short/Current Long Term Debt 7,781,000 6,367,000 5,793,000
Other Current Liabilities - - -
Total Current Liabilities 42,888,000 37,418,000 32,617,000
Long Term Debt 23,669,000 20,099,000 19,608,000
Other Liabilities - - -
Deferred Long Term Liability Charges 2,947,000 2,288,000 1,761,000
Minority Interest 1,323,000 1,484,000 1,362,000
Negative Goodwill - - -
Total Liabilities 70,827,000 61,289,000 55,348,000
Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 423,000 431,000 440,000
Retained Earnings 43,854,000 40,206,000 37,924,000
Treasury Stock - - -
Capital Surplus 2,425,000 2,135,000 1,482,000
Other Stockholder Equity 2,694,000 851,000 (509,000)
Total Stockholder Equity 49,396,000 43,623,000 39,337,000
Net Tangible Assets $38,593,000 $33,741,000 $29,816,000
Income Statement Get Income Statement for:
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All numbers in thousands
PERIOD ENDING 31-Jan-05 31-Jan-04 31-Jan-03
Total Revenue 287,989,000 258,681,000 246,525,000
Cost of Revenue 219,793,000 198,747,000 191,838,000
Gross Profit 68,196,000 59,934,000 54,687,000
Operating Expenses
Research Development - - -
Selling General and Administrative 51,105,000 44,909,000 41,043,000
Non Recurring - - -
Others - - -
Total Operating Expenses - - -
Operating Income or Loss 17,091,000 15,025,000 13,644,000
Income from Continuing Operations
Total Other Income/Expenses Net 201,000 164,000 138,000
Earnings Before Interest And Taxes 17,292,000 15,189,000 13,782,000
Interest Expense 1,187,000 996,000 1,063,000
Income Before Tax 16,105,000 14,193,000 12,719,000
Income Tax Expense 5,589,000 5,118,000 4,487,000
Minority Interest (249,000) (214,000) (193,000)
Net Income From Continuing Ops 10,267,000 8,861,000 8,039,000
Non-recurring Events
Discontinued Operations - 193,000 -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 10,267,000 9,054,000 8,039,000
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares $10,267,000 $9,054,000 $8,039,000
Target stores:
Balance Sheet Target Get Balance Sheet for:
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All numbers in thousands
PERIOD ENDING 29-Jan-05 31-Jan-04 1-Feb-03
Assets
Current Assets
Cash And Cash Equivalents 2,245,000 716,000 758,000
Short Term Investments - - -
Net Receivables 5,069,000 5,776,000 5,565,000
Inventory 5,384,000 5,343,000 4,760,000
Other Current Assets 1,224,000 1,093,000 852,000
Total Current Assets 13,922,000 12,928,000 11,935,000
Long Term Investments - - -
Property Plant and Equipment 16,860,000 16,969,000 15,307,000
Goodwill 60,000 - -
Intangible Assets 146,000 - -
Accumulated Amortization - - -
Other Assets 1,305,000 1,495,000 1,361,000
Deferred Long Term Asset Charges - - -
Total Assets 32,293,000 31,392,000 28,603,000
Liabilities
Current Liabilities
Accounts Payable 7,716,000 7,448,000 6,548,000
Short/Current Long Term Debt 504,000 866,000 975,000
Other Current Liabilities - - -
Total Current Liabilities 8,220,000 8,314,000 7,523,000
Long Term Debt 9,034,000 10,217,000 10,186,000
Other Liabilities 1,037,000 - -
Deferred Long Term Liability Charges 973,000 1,796,000 1,451,000
Minority Interest - - -
Negative Goodwill - - -
Total Liabilities 19,264,000 20,327,000 19,160,000
Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 74,000 76,000 76,000
Retained Earnings 11,148,000 9,645,000 8,107,000
Treasury Stock - - -
Capital Surplus 1,810,000 1,341,000 1,256,000
Other Stockholder Equity (3,000) 3,000 4,000
Total Stockholder Equity 13,029,000 11,065,000 9,443,000
Net Tangible Assets $12,823,000 $11,065,000 $9,443,000
Income Statement Target Get Income Statement for:
View: Annual Data | Quarterly Data
All numbers in thousands
PERIOD ENDING 29-Jan-05 31-Jan-04 1-Feb-03
Total Revenue 46,839,000 48,163,000 43,917,000
Cost of Revenue 31,445,000 31,790,000 29,260,000
Gross Profit 15,394,000 16,373,000 14,657,000
Operating Expenses
Research Development - - -
Selling General and Administrative 10,534,000 11,534,000 10,181,000
Non Recurring - - -
Others 1,259,000 1,320,000 1,212,000
Total Operating Expenses - - -
Operating Income or Loss 3,601,000 3,519,000 3,264,000
Income from Continuing Operations
Total Other Income/Expenses Net - - -
Earnings Before Interest And Taxes 3,601,000 3,519,000 3,264,000
Interest Expense 570,000 559,000 588,000
Income Before Tax 3,031,000 2,960,000 2,676,000
Income Tax Expense 1,146,000 1,119,000 1,022,000
Minority Interest - - -
Net Income From Continuing Ops 1,885,000 1,841,000 1,654,000
Non-recurring Events
Discontinued Operations 1,313,000 - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 3,198,000 1,841,000 1,654,000
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares $3,198,000 $1,841,000 $1,654,000
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This gives the steps of financial Analysis of Walmart and Target
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Ratio analysis can also help us to check whether a business is doing better this year than it was last year; and it can tell us if our business is doing better or worse than other businesses doing and selling the same things. In other words it helps in inter firm and intra firm comparison.
Ratio analysis is useful, but analysts should be aware of these problems and make adjustments as necessary. Ratios analysis conducted in a mechanical, unthinking manner is dangerous, but if used intelligently and with good judgement, it can provide useful insights into the firm's operations.
Liquidity ratios measure the ability of a firm to ...
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