ANALYSIS OF A FIRM’S FINANCIAL STATEMENTS
An Analysis of Wal-Mart’s 2004 Financial Statements
LeTourneau University
I. Executive Summary
A. Objective of paper
My objective is to analyze financial statements from the 2004 Wal-Mart Annual Report. Based on my findings and any relevant supplementary information provided about Wal-Mart and its operating environment, I will identify areas in which the company is performing well and advise management of any problem areas.
B. Summary of findings
Based on the information that I found on the financial statements, Wal-Mart Stores, Inc. is currently on the rise. They have increased their cash flow while decreasing their long-term debt. Their investing activities have decreased, but can be remedied with a good solid investment.
II. Firm, Industry, and Environment
A. Description of firm and its management
Wal-Mart Stores, Inc. (Wal-Mart), incorporated in October 1969, operates retail stores in various formats around the world. The Company operates through three segments: Wal-Mart Stores segment, which includes Supercenters, Discount Stores and Neighborhood Markets, Sam's Club segment and International segment. The Wal-Mart Stores segment segment consists of three different traditional retail formats, all of which operate in the United States, and Wal-Mart's online retail format, walmart.com. The Sam's Club segment consists of membership warehouse clubs, which operate in the United States, and the segment's online retail format, samsclub.com. At January 31, 2007, its International segment consisted of retail operations in 12 countries and Puerto Rico. In October 2006, the Company disposed of its South Korean an ...