This is a project on Walmart. 1.Accounting and Finance (7 points) Number of shar

ID: 339934 • Letter: T

Question

This is a project on Walmart.

1.Accounting and Finance (7 points)

Number of shares of common and preferred stock

Number of shareholders

Current stock price

Dividends (Are they paid? At what price?)

Capital structure specifically outstanding long term debt-loans, commercial paper etc.

Credit Rating

Ratio analysis (2 from each category) (5 points)

Liquidity

Asset management

Financial Leverage

Profitability

Market value ratios (only compute the price/earnings ratio)

COMPARE COMPANY RATIOS TO INDUSTRY STANDARDS

Accounting/Financial SWOT Analysis (5 points)

Based on your findings summarize the general financial status of the company. Do you believe this company is sound financially? Would you invest in this company? (5 points)

Explanation / Answer

Data as on 30th April 2018:

Number of shares of common and preferred stock= 2,952.00 and Preferred= 0

Number of shareholders= 1,837

Current stock price= 88.24USD

Dividends (Are they paid? At what price?)= 6,124.0 million USD

Capital structure specifically outstanding long term debt-loans, commercial paper etc.= long term debt= 30,045.0 million USD, total debt= 46,487.0 million USD

Credit Rating= by Moody’s= Aa2 long-term and Prime-1 short term

Liquidity= liquidity ratios-

Current ratio= 0.76

Quick ratio= 0.16

Cash ratio= 0.09

Asset management = total assets= 204,522.0 million USD

Financial Leverage= 2.63

Profitability= Net margin= 1.97

Market value ratios (only compute the price/earnings ratio)= 27.05

COMPARE COMPANY RATIOS TO INDUSTRY STANDARDS

Walmart

Industry

Growth Rates

11.99

9.10

Price/ Earnings

20.06

22.35

Dividend yield

2.35%

1.96%

Net profit margin

1.97%

1.57%

Return on Equity

16.85%

13.24%

Yes this company is finacially sound due to strong Finacial position and company ratios compared to the industry data, and lead player in the market. For sure, it is worth investing in Walmart.