Analyzing the Financial Statements of the World’s Retailer

The Wal-Mart case is intended for an introductory or main course on Financial Statement Analysis. It may also be useful in spite of appearance a Corporate Finance/Financial Management course. After a class on financial statements and liquidity, profitability and solvency ratios and some brief examples discussed by the lecturer students should be capable of making a financial analytic thinking of Wal-Mart. Students substructure be asked to make this analysis in class, or to furbish up the case outside the classroom, and to present it.Ideally, the case work is conducted in groups of 4 to 6 students, and it typically takes mingled with 1 to 1. 5 hours (for the analysis itself obviously, compose a written report or presentation is to a greater extent prison term consuming). The Wal-Mart case is aimed at both undergraduate and graduate students, and for general counseling programmes/MBAs as well as finance students obviously, for the latter group, a ofttimes more fine-grained analysis, extensive discussion and adequate subsumeing among various financials and between the numbers and Wal-Marts business is required.Evidently, the lecturer should highlight many more details in a class of finance students. In the belief note, the authors first provide a detailed discussion of Wal-Marts sense of balance sheet, profit and loss account and cash flow statement, mainly base upon common base and common size analysis. While the focus is on 2009 figures, conclusions for 2008 would be broadly similar.Furthermore, they also provide an overview of some key financials development over the past 10 years. Next, they calculate and interpret liquidity, profitability and solvency ratios for 2008 and 2009 and link these to Wal-Marts business model and operating activities. They summarize the main findings in a concluding section. Finally, the authors include a slide show that can be used while teaching this case.