Walmart Income Statement For the year ended January 31, 2018 Walmart Income Stat
ID: 2337510 • Letter: W
Question
Walmart
Income Statement
For the year ended January 31, 2018
Walmart
Income Statement
For the year ended January 31, 2017
Details
2018
Details
2017
$
$
Total Revenue
$500,343,000
Total Revenue
$485,873,000
Cost of Revenue
$373,396,000
Cost of Revenue
$361,256,000
Gross Profit
$126,947,000
Gross Profit
$124,617,000
Sales, General and Admin.
$106,510,000
Sales, General and Admin.
$101,853,000
Operating Income
$20,437,000
Operating Income
$22,764,000
Add’l income/expense items
($2,984,000)
Add’l income/expense items
$100,000
Earnings Before Interest and Tax
$17,453,000
Earnings Before Interest and Tax
$22,864,000
Interest Expense
$2,330,000
Interest Expense
$2,367,000
Earnings Before Tax
$15,123,000
Earnings Before Tax
$20,497,000
Income Tax
$4,600,000
Income Tax
$6,204,000
Minority Interest
($661,000)
Minority Interest
($650,000)
Net Income-Cont. Operations
$9,862,000
Net Income-Cont. Operations
$13,643,000
Net Income-
$9,862,000
Net Income-
$13,643,000
Net Income-Applicable to Common Shareholders
$9,862,000
Net Income-Applicable to Common Shareholders
$13,643,000
Target
Income Statement
For the year ended February 23, 2018
Target
Income Statement
For the year ended January 28, 2017
Details
2018
Details
2017
$
$
Total Revenue
$71,879,000
Total Revenue
$69,495,000
Cost of Revenue
$51,125,000
Cost of Revenue
$49,145,000
Gross Profit
$20,754,000
Gross Profit
$20,350,000
Sales, General and Admin.
$14,248,000
Sales, General and Admin.
$13,356,000
Other Operating Items
$2,194,000
Other Operating Items
$2,025,000
Operating Income
$4,312,000
Operating Income
$4,969,000
Add’l income/expense items
0
Add’l income/expense items
0
Earnings Before Interest and Tax
$4,312,000
Earnings Before Interest and Tax
$4,969,000
Interest Expense
$666,000
Interest Expense
$1,004,000
Earnings Before Tax
$3,646,000
Earnings Before Tax
$3,965,000
Income Tax
$718,000
Income Tax
$1,296,000
Minority Interest
0
Minority Interest
0
Net Income-Cont. Operations
$2,928,000
Net Income-Cont. Operations
$2,669,000
Net Income
$2,934,000
Net Income
$2,737,000
Net Income-Applicable to Common Shareholders
$2,934,000
Net Income-
$2,737,000
1. Revenue recognition: On the income statement we must assess it on a quantitative and qualitive basis.
a) Use horizontal analysis to identify any time trends.
b) Compare the horizontal analysis of the two companies, what are the differences if any?
c) Consider the current economic environment and the companies’ competitive landscape. Given that they operate in the same industry, do they have similar revenues?
Walmart
Income Statement
For the year ended January 31, 2018
Walmart
Income Statement
For the year ended January 31, 2017
Details
2018
Details
2017
$
$
Total Revenue
$500,343,000
Total Revenue
$485,873,000
Cost of Revenue
$373,396,000
Cost of Revenue
$361,256,000
Gross Profit
$126,947,000
Gross Profit
$124,617,000
Sales, General and Admin.
$106,510,000
Sales, General and Admin.
$101,853,000
Operating Income
$20,437,000
Operating Income
$22,764,000
Add’l income/expense items
($2,984,000)
Add’l income/expense items
$100,000
Earnings Before Interest and Tax
$17,453,000
Earnings Before Interest and Tax
$22,864,000
Interest Expense
$2,330,000
Interest Expense
$2,367,000
Earnings Before Tax
$15,123,000
Earnings Before Tax
$20,497,000
Income Tax
$4,600,000
Income Tax
$6,204,000
Minority Interest
($661,000)
Minority Interest
($650,000)
Net Income-Cont. Operations
$9,862,000
Net Income-Cont. Operations
$13,643,000
Net Income-
$9,862,000
Net Income-
$13,643,000
Net Income-Applicable to Common Shareholders
$9,862,000
Net Income-Applicable to Common Shareholders
$13,643,000
Explanation / Answer
Income Statement Walmart Target Horizontal Ananlysis For the year ended January 31, 2018 Trend in 2018 over 2017 Trend in 2018 over 2017 Details (2018-2017)2017 (2018-2017)2017 Total Revenue 2.98% 3.43% Revenues, cost of revenues,S&G expenses have increased for both. Cost of Revenue 3.36% 4.03% Gross Profit 1.87% 1.99% Sales, General and Admin. 4.57% 6.68% Other Operating Items 8.35% Operating Income -10.22% -13.22% Opg.Income has decreased more for Target due to other opg. Expenses. Add’l income/expense items -3084% Earnings Before Interest and Tax -23.67% -13.22% EBIT has decreased more for Walmart due to some additional exp.items Interest Expense -1.56% -33.67% Heavy decrease in interest expense for Target Earnings Before Tax -26.22% -8.05% EBT has decreased more for Walmart due to some additional exp.items Income Tax -25.85% -44.60% Minority Interest 1.69% Net Income-Cont. Operations -27.71% 9.70% Net Income has increased to Target due to considerable decrease in Interest expenses Net Income- -27.71% 7.20% Net Income-Applicable to Common Shareholders -27.71% 7.20% Increasing net Income for Target due to decrease in Interest expense. 2018 2017 Walmart ----Total Revenue 500343000 485873000 Target -----Total Revenue 71879000 69495000 Walmart/Target 7 7 Walmart's revenues are almost 7 times that of Target's
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