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Flux Analysis

Obtain the most recent financial statement of any company that you would like to research. Please state the name of the company, its business activity along with key financial data (sales, operating profit, net income, assets, liabilities and equity of this company).
2. Obtain the same information for one of company's competitors in the same industry.
3. Assume that you are preparing a planning memo for both companies and the Partner in charge of your firm's office has asked you to include the following:
a. Flux analyze for sales and accounts receivable for both companies.
b. Your opinion on how you will use this flux information in your planning memo which will be presented in next partners meeting regarding these two clients. (Additional information: If you believe that this information really does not provide you good information it is valid to indicate that based upon this information alone you can not make an assessment. However, if this is your stance, please indicate what additional information that you will require.)

Note: A flux analysis is also known as an analytical review which is comparing one period to the next, or to budget or to another company.

For example:

Accounts Receivable as of 2006 100,000
Accounts Receivable as of 2007 250,000

$ change 150,000
% increase 150%

Solution Preview

Figures have been taken from yahoo finance.
Wal-Mart Stores Inc.
Its business activity: Operates retail stores all over the world.
Key financial data:
? Sales:$348,650 million.
? Operating Profit: $20,497 million
? Net Income: $11,284 million
? Assets: $151,193 million.
? Liabilities: $89,620 million
? Equity::$61,573 million

Name of the company: Target Corporation
Its business activity: Merchandise and food discount stores.
Key financial data:
? Sales:$59,490 million.
? Operating Profit:$5,069 million.
? Net Income:$2, 787 million.
? Assets: $37,349 million.
? Liabilities:$21,716 million.
? Equity::$15,633 million.

FLUX ANALYSIS FOR WAL-MART (Figures in millions)
Accounts Receivable as of 2006 2,662
Accounts Receivable as of 2007 2,840

$ change 178
% increase 6.69%

Sales as of ...

Solution Summary

This answer provides you an excellent discussion on Flux Analysis