Description
Response to : Michael Assignment Detail Walmart Everyone, at some time in their will go into Walmart Inc. which ranks number 7 in sales in the world. The reported earnings in the third quarter was a remarkable third quarter was 159,439 million compared to a year ago. The Term Investment 12.15 Billion, and the total debt 69.74 B, total liabilities 173.36 billion, and the total shareholder’s equity 79.46 billion. Walmart has various products they sell but, Toys, Wipes, Diapers, Lotions, Care kits. These are just some. But, popular probably at Walmart sale is groceries, they also have electronics furniture and all kinds of other products households products. When it comes to Walmart, there focus on financial statement the main financial sources is to analyze, and calculate the total revenue divided by, adjusted total assets. Walmart Inc. has been around for many years and everybody and everyone has seen the progress of the company. The equity is good, and the balance sheet statement proves it is worthy. Walmart’s analyzers their competitors, and their biggest approach is low prices. Everyone loves low prices, regardless of what the situation is, especially living in an economy that is fighting inflation. Statistically, Walmart’s financial statement it’s all analyze through a balance sheet and the income statements. It is important that Walmart focus on cash flows, and the changes of stockholders equity. Even though Walmart has plenty of assets to keep their eyes on, this creates numerous liabilities within the company. Walmart, have many pros and cons when it comes to the financial statement, the fact that Walmart building buildings in little cities, are big cities that strive to make a living by, their business and coming in putting a Walmart in the business effects other businesses, and many some of those business go out of business. Which creates a financial situation for other business, hurting other companies. Which has a major effect on customers because, of the fact they have no choice but, to buy from that Walmart. I’ve been dealing with Walmart, and have met Sam Walton, the creator of the company, but, the fact that when his children took over the company. It has been a good success, but, Walmart uses all it is resources to gain control of the shopping market, which comes with purpose, and value. The fact that Amazon, in my own personal opinion, is the leader in online shopping and Walmart is trying to drain and take over their online shopping in a business manner. I, find to be spectacular and very competitive. I was asked do I think Walmart would ever take over Amazon online company, and take their number one service which is online.When doing business, and having to ship products to the customer, it is more a than prices, and more about services. Amazon, and Walmart difference is that Walmart is more on an take over of amazons products , and taking over online sell financial to gain control of online but, Walmart still leads Amazon in terms of overall revenue, $611 billion , and Amazon overall grosd of $514 billion. Refences Financial Analysis of Retail Business Organization: A Case of Wal-Mart Stores, Inc. July 2016 https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.researchgate.net/publication/319302203_Financial_Analysis_of_Retail_Business_Organization_A_Case_of_Wal-Mart_Stores_Inc&ved=2ahUKEwiSnMyG5OqDAxUstokEHdLqBGEQFnoECCEQAQ&usg=AOvVaw3mSJfW2uTVWaXg3JF9BbhJ Response to: Emma The quality of Amazon’s and Walmart’s financial statements depends on various factors such as accuracy, reliability, completeness, transparency, consistency, timeliness, comparability, and clarity of presentation. While analyzing a single firm’s financial statements offers depth and focus, it’s crucial to balance it with broader industry benchmarks and economic trends for a more comprehensive evaluation. Both Amazon and Walmart have their pros and cons. They both offer limited benchmarking, industry context, market trends, and risk diversification. However, they also provide a focus, depth of analysis, and an in-depth understanding to evaluate a company’s financial health. 1. Accuracy and Reliability: Amazon: Amazon’s financial statements are known for accuracy, and the company employs reliable accounting practices. Walmart: Walmart’s financial statements are also accurate, adhering to generally accepted accounting principles (GAAP). 2.Completeness: Amazon: Amazon’s financial statements provide a comprehensive view of the company’s operations, including segment-wise information. Walmart: Walmart’s financial statements are complete, offering a detailed breakdown of revenues, expenses, and key financial metrics. 3.Transparency: Amazon: Amazon’s financial statements are transparent, with detailed disclosures about business segments, risks, and accounting policies. Walmart: Walmart maintains transparency, ensuring investors and analysts have access to relevant information. 4.Consistency: Amazon: Amazon maintains consistent financial reporting, allowing for meaningful year-to-year comparisons. Walmart: Walmart’s financial statements demonstrate consistency, facilitating trend analysis over time. 5.Timeliness: Amazon: Amazon provides timely financial statements, keeping stakeholders updated on the company’s financial health. Walmart: Walmart’s financial statements are released promptly, meeting reporting deadlines. 6.Comparability: Amazon: Amazon’s financial statements are comparable, enabling benchmarking against industry peers. Walmart: Walmart’s financial statements are comparable, aiding investors in evaluating the company’s performance relative to competitors. 7.Clarity of Presentation: Amazon: Amazon presents its financial statements clearly and understandably, enhancing user comprehension. Walmart: Walmart ensures that its financial statements are presented clearly, making them accessible to a broad audience. Debating the Pros and Cons of Analyzing Just One Firm’s Financial Statements: Pros: Focus: Analyzing a single firm’s financial statements allows for a concentrated focus on understanding the specific company’s financial health and performance without the distraction of comparing multiple companies. Depth of Analysis: Detailed analysis of one firm’s financial statements enables a deep dive into its unique financial structure, business model, and strategic initiatives. In-Depth Understanding: Analysts can develop a nuanced understanding of the company’s financial strengths, weaknesses, opportunities, and threats by thoroughly examining its financial statements. Cons: Limited Benchmarking: Analyzing only one firm’s financial statements may limit the ability to benchmark its performance against industry peers, potentially hindering a broader assessment of its competitiveness. Industry Context: With comparative analysis with industry peers, it may be easier to gauge whether the observed financial metrics are industry norms or if there are unique challenges or advantages specific to the company being analyzed. Market Trends: A sole focus on one firm’s financial statements might overlook broader market trends and economic factors that could impact the company’s performance. Risk Diversification: Assessing only one company’s financial statements may not provide insights into how well the firm is diversified or hedged against industry-specific risks. In conclusion, while analyzing a single firm’s financial statements offers depth and focus, it’s crucial to balance by considering broader industry benchmarks and economic trends for a more comprehensive evaluation. WALMART INC. ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED JANUARY 31, 2021. WMT-20210131. (2021, January 31). https://www.sec.gov/Archives/edgar/data/104169/000… AMZN | Amazon.com Inc.. annual income statement – WSJ. Amazon.com Inc. AMZN (U.S.: Nasdaq). (2023, December 12). https://www.wsj.com/market-data/quotes/AMZN/financ… Response to Michael from my discussion post: Jami Britton hi I’m Michael knowing every aspect of your companies financial weaknesses, and strength are very important in running an successfully operation is very important. Also, having accuracy, and reliability in adherence to the generally accepted accounting principles bring value to an companies, success or downfall. The customers are the key audience of what is good, and what is bad in an financial way. So, liabilities, and debt play an major role in keeping up with an company. Great Post. Response to Professor from my post : James Miller INSTRUCTOR Jami: Cost of goods sold is always an interesting number, and if they up then the gross profit goes down.
