Walmart · last 5 years of financial statement · Balance sheet

| February 25, 2017

Question
Walmart

· last 5 years of financial statement

· Balance sheet

· liquidity and financial ratios

· profitability ratios

· current ratios

· etc.

Please follow the sample guideline below:

SAMPLE GUIDELINE:

I Used following steps to complete this assignment:
4-1. I went to GGU University databases web page and downloaded the last 7 years of Balance Sheet data of Gilead Sciences through “Mergent Online” database.

4-2. Then I tried to see if grand total figures such as total current assets, total current liabilities etc. were sum of the sub components. If you see carefully, all figures pertaining to row 54 titled “other accrued liabilities” do not get counted in row 61 “total current liabilities” figures.Further it is notable that rows 53, 54 and 55 all contain figures pertaining to “other accrued liabilities” section. It appears that rows 53 and 55 show the actual figures (albeit in two different rows), while row 54 is “garbage”.
Please spend time to look at the balance sheet generated by online databases like Mergent Online. You may find some mismatches. And if so, you need to deal with these mismatches appropriately before you start analyzing the statement”

4-3. Then I tried to divide the balance sheet (by inserting blank rows at appropriate places) into sequential subsections such as Current Assets, Non-current Assets, Current Liabilities, Non-current Liabilities, Total Liabilities, Total stockholder equity.

4-4. Then I calculated the percentage change in balance sheet numbers from one year to the next (otherwise labeled as change analysis in the worksheet). Then based on 6 inter-year averages pertaining to 7 years of balance sheet data, I then calculated the average of all six averages (See Column R).

4-5. The using column R figures and balance sheet numbers pertaining to the latest year (Reported 2009, Column H in my worksheet), I forecasted balance sheet figures for 2010 and 2011.

4-6. Finally, I calculated 6 Balance sheet related financial ratios. I have mentioned the formula that I employed for each of the ratios. For all assignments, mid-term exams, and final exams, you must use the formulas printed in the inside portion of the front and back cover of the prescribed text. We will discuss these financial ratios at considerable depth in future sessions.

4-7. If you carefully see my worksheet, I do not have “Total Non-current Liabilities” or “Total Liabilities” figures. Instead, I derived Total liability as (Total Assets – Total Stockholder Equity). On the other hand, had I chosen to sum all available net values of non-current liability items that I could see in the worksheet (from rows 63 to 71), and then added the total non-current liability figure to total current liability figure (row 61) and to total stockholder equity figure(row 81), the final figure should equal Total Assets figure (row 37). This is because we know that Assets = Liabilities + Stockholder Equity. But if you try to do this based on Gilead’s balance sheet numbers, the final figure is different than row 37 figures. This means that there are some non-current liability items that are not shown explicitly in this balance sheet. In that case it is best to derive total liabilities figure as (total assets – total stockholder equity).
The broader point is “Carefully look through the numbers in the balance sheet to see if the there are some missing items/sections that needs to be derived based on other available information. If so, choose the most reliable way to derive those numbers before calculating the financial ratios”

4-8. Finally as you would have guessed by now, I used the following methodology to forecast grand total

4-8.1) If I was able to obtain forecasted figures for each sub-items pertaining to a specific grand total, I totaled these items to obtain the grand total (See cells I19 and J 19)

4-8.2) On the other hand if there were many missing values or if the changes in historical figures were erratic from one year to another, I used average of prior year % changes to forecast grand total figures (See cells I 37, J 37, I61, J61).

At the end of this whole forecasting procedure, it is evident that the forecasted figures are highly dependent on a) all prior year data being available b) size and direction of year-to-year changes of last 6 periods. As a result, forecasts are never 100% reliable and they are bound to change with changing circumstances and assumptions.

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