f

The hedged items are recognized foreign currency-denominated liabilities that are re-measured at spot exchange rates each period, and the assessment of effectiveness (and measurement of any ineffectiveness) is based on total changes in the related derivative's cash flows Refer to Note 7 for the net presentation of the Company's derivative instruments.”

In my opinion there is lot of hidden numbers special in cash flow because in the annual report the is a few justify why they cash flow getting low or the investment or the financial cash like they said there is an repurchase for the company stock or there is a few law suit against them so they reduce it from the cash or cash equivalents. the report mention about how they record the cash equitant by 3-month investment which is against the rule its suppose to be less than year.

The fluctuation in the operation cash between 2016 and 2017 was 4.121 and 2017 to 2018 was (3336) Which justify form the company as the payment for tax and the other payment. also the improvement in working capital management.

In investment cash flow was increase in 2017 because they are expanding eCommerce capabilities so they invest in jd.co Inc. and jet.co in the financial cash change between .8 and 2.8 because the paid of the long and short term debit .

According to these analysis and the pervious analysis Walmart have a fluctuation in the financial statement because the plane that they put it to be more effective and efficiency in there industry , in that way the putting a lot of investment and satisfy a lot of cash to get more benefit in the future .

Investment in other country also buying or lease a new places , or the investment in the ecommerce also a good movement to get what they looking for . there position in the market very strong special with there offers in the industry , the numbers that the gain the growth in the revenue %3 is hard in this industry, its one of the greatest revenue in USA so I think they are in good satiation .

In the financial statement that prove the company was in short term debit in 2017 but they back to their regular debit , that mean the management did a right investment in 2017 , the current ratio is low ,because the company in this year looking for growth and they reduce the actual amount of the money to put it insurance for the foreigner subsidiaries .

analysis this company recurred to read their annual report to understand there is a few numbers are not the actual numbers because the huge different financial and laws that they face it .

in the end this company is on of the best company in USA also the biggest revenue too . the company share in market 96.20$ and face a big growth for long terms according to strong, efficient growth .

so in the analysis for the company within 5 years all ratio approved that the company will be in good situation even in this years the dividend yield was more than the industry . the company have huge ratio of liabilities because they considered the long term plan for growth . in every part of this annual report mention the growth and the cash that been deductive to purpose of expanding in there sales .

feed back:

thanks for early submission.  In future, if you don't include the questions, followed by your answers, I will return the submission to you with no credit.  This ".S., Africa, Argentina, Brazil, Canada, Central America, Chile, China, India, Japan, Mexico and the United Kingdom are the country that u can found Walmart," needs to be rewritten. u is not a word.  This "

They justify that in the differences between country and the company still working to improve there service , they are growing so its possible that is the reason behind that ,Walmart now considers one of the best revenue and growth company in USA ." would all need to be rewritten.  Who is they?  Company should be companies, there should be their. The company segments are Walmart US, Walmart Int'l, Sam's, Corp & Support.  This is how results measured. Here is another sentence, that truly needs to be rewritten "In my opinion there is lot of hidden numbers special in cash flow because in the annual report the is a few justify why they cash flow getting low or the investment or the financial cash like they said there is an repurchase for the company stock or there is a few law suit against them so they reduce  it from the cash or cash  equivalents."  On talking about income statement you do show condensed statements and talk a little about changes in sales and costs.  Should also give gross profit % and/or operating margin %.  What is last line in your cash flow statement?  Change in cash or cash?  It looks to have decimal point instead of comma, and no number for 2016.  Should mention company has healthy operating cash flow that is then used for investing and financing activities.  on your ratios if debt to equity is %  you need the % sign, otherwise you are saying that debt is about 80x equity.  Several times you use the word debit, when I believe you mean debt.  You might need to visit the writing help desk before you submit a paper.  Underlying performance is the company meeting its goals?  How is same store sales? How about sales per employee?  Market share?  What about operating margin % vs industry here?  I have read this sentence "analysis this company recurred to read their annual report to understand there is a few numbers are not the actual numbers because the huge different financial and laws that they face it" several times and have no idea what it is saying.  Whole paper really needs rewrite.  Please visit the writing help desk.  You talk about growth mentioned several times in annual report, but does the company have a sustainable plan?  Is it meeting its goals?  I graded this easy because of early submission.  A lot of improvement needed, especially in writing, to get proficient (more for exemplary) in final paper.  

(2)

Walmart’s Risk Management

Risk Management

A risk is any sort of uncertainty that may affect the company is called as risk. Risks are unpredictable and unanticipated factors of the organization. It is an uncertain event that may have a negative of positive effect on the project or an organization. Organization deploy risk management practices to tackle such risks and mitigate the risks associated with the company.

Risks in the retail industry

The retail industry has witnessed quite complications in the recent era. The changing demands of people and the current global crisis is a risk faced by the retail industry. The consumers demand has shifted and there is a strong fluctuation which makes it intricate for the retailers to maintain their supply chain. Secondly, the global economic crisis has severely affected the retail industry. This crisis has lowered consumer’s spending budget due to increased unemployment rate and lower wages that occur as a result of financial crisis. The customers have become more sensitive to the ‘price’ factor and prefer to save better. People have strained their spending budget which ultimately lowers the revenues by retail industry over time. Another risk by this industry is sudden shift to automation and ecommerce. With initiatives like AirBnB, people have started sharing goods and things which ultimately lowers the sales volume. From bicycles to devices to other home necessities people prefer the low-cost option i-e sharing over buying. These are some of the risks that are faced by the retail industry and need to be considered by the players of this industry.

Risks of Walmart Inc.

Initiated in 1969, Walmart is one of the leading retailers across the globe. Since years Walmart has managed to expand across the world and gather customer base. According to statistics, it has spread to quite numerous location having around 2.3 million employees. This success of this Walmart is owed to its strategical maturity and appropriate management practices. It has giant competitors like Target Inc. The company has developed quite mature ERM to assist the growth of business. The risks faced by Walmart include managing its diverse employee base, maintaining its supply chain and retaining its customer base. For diverse employee base Walmart has made quick steps for an efficient human resource team and strategically manages the company. Though in recent times Walmart has been under boiling water due to a lack of appropriate management compliance. Secondly, Walmart plans to face a challenge in maintaining its supply chain. Supplier is one of the imminent entity in the retail industry that carries the verdict of its success and growth. Therefore, Walmart makes effort to develop healthy supplier relationships in order to maintain a smooth chain. The risk of competitors is also faced by the company. Walmart gains its competitive advantage by offering the lowest possible price for its customers. Recently Walmart announced special discounts for its loyal customer and other concessions and facilities in order to retain the customer base. These strategies assist in keeping the company secured from the severe impacts of such loss. In the end the country governance which will faced by any world wild company by rule of law special the tax in different country .

according to the risk management in Walmart they dealing with these risks first they manage the supply chain risk by their audits , program ,and training . also by start a partnerships with the companies ,government and non government organization .

there are numerous risks, factors and uncertainties, domestically and internationally, outside of our control. One, or a combination, of these risks, factors and uncertainties could materially affect any of those matters as to which we have made forward-looking statements and cause our actual results or an actual event or occurrence to differ materially from those results or an event or occurrence described in a forward-looking statement. These risks, factors and uncertainties, which may be global in their effect or affect only some of the markets in which we operate and which may affect us on a consolidated basis or affect only some of our reportable segments, include, but are not limited to: changes in the rate of taxation , changes in the law in one of the country , changes in the GAAP , changes in the law for labor , changes in the size if the market even in the eCommerce market , changes in the operating cost like the gas , the interest rate ,in the currency rate to dollar which will effect direct to the cash amount

•non financial risk :

The availability of product from the suppliers , the effectiveness of the implementation and operation of Walmart's strategies, plans, programs and initiatives also In the nonfinancial risk will get effected by law if one of the country authorized anew law the company must adopt this law and make changes to stay in the safe side . this business has a high competitive environment but Walmart depend in there successes to provide and predict with consumer need and demand ,

Start relationship and deal with alliance that reduce a lot of the risk that the company face special from the third part to provide the product or the goods ,

Starting a new information systems with high training employees will results more effective and efficient management to deal with non-financial risk .but also there is a risk in this system if it wail to report the problem or any new changes happen in any branch or any country for the company .

The changes in the law considered as financial and non-financial risks depends on which law was changes if there changes in the labor cost it will be effected in the financial statement , if its in the banks interested or credit interest its also considered as financial risk ,but if the rule change was in the import or about forbidden a type of goods that will effect in non-financial risk .

In the end Walmart found the best way to deal with these type of risk first to have a strong relationship with the government in the foreign country and have direct contact to know what rule , which rule will effect there type of business .secondly build a effective internal audit team which consider about the changes between country ,the effect of the new rules , the changes in interest rate and currency rate .

Feeed back

the assignment was due a week (actually 8 days) ago.  Sorry, without a true extenuating circumstance (being away to Jordan would not qualify) I do not accept late papers.  In terms of updating this for your final paper, what do you mean consumer demand has shifted?  What is a world wild company?  anew is two words.  This phrase "Start relationship" needs to be rewritten. I understand what you trying to say.  Does Walmart need to do this?  Perhaps these items need to be a bulleted list.  What is "if it wail to report?"  This "The changes in the law . . . " is run on sentence and needs to be broken up and rewritten.  " . . . these type of risk" is this type of risk, or these types of risks.  How can Walmart better capitalize on nonfinancial strengths?  What are long term and short term planning priorities?  Is company growth or efficiency oriented?  Third question looks pretty good. 

(3)

Forecast the financial report by using the pervious years will provide the performance of this company which help us to get information about this company ,also will help us to evaluate their performance and forecast their future using the net operating capital will help us to know how much capital need to support the sales and debt ratio help us to know the level of debt needed that year these information will help us to know the elements needs next year in the financial statement . studying the past will provide an experience for what needed or what need to improve our share in the market .

All needed information will found in the pervious financial statement to understand the alternative and the best ways to stay in the market or to be more aggressive in the competition

Regular scenario :

In this scenario I depends in the average of change , I started with the sales ((1.88* 500,343.00 )+ 500,343)). The schedule depends in the actual amount of change for the element which will make it real. As regular scenario I used the information that I got from the annual report to forecast the next three years . Using the average of change make it more realistic .

The number shows the company will have a negative grow in net income during the next 3 years if they still have the same amount of change ,and the cost of sales will be more than 74.8 as it was in 2018 which will have a huge impact of the net income .

The best scenario:

. In the scenario I used 5.18% as the change of rate in sales ( (2.98-.78)+2.78) ,which provide me a best growth in the sales . in other hand I used the lowest percentage in the common size for each items in the income statement like I used 74.3 % of the sale as cost of sales and 20.13% for the operating expenses .

In this scenario show us the impact of reducing the expenses special cost of sales .there is a huge change between 2019 and 2021 in the operating income also in the net income.

The worst scenario :

In this scenario I use the lowest change in sales it was .78 which was the change in 2017,however I used the same amount of average change in the elements of income statement to provide the effect of expenses in this statement also .

In the end the forecast help me to provide a good explanation that the company must consider to reduce the expense specially the cost of sales . the company vision is making the right growth of the business by plans and objectives for their operations, including areas of future focus in their operations.

In 2018 there is a changes in sales 2.2% of sale which not easy for the company as Walmart . that’s approve the significant index for an aggressive action to get more shares in the market .during the forecast its provide information the if the company stayed in the same growth its will be a sign for losing their position in the market . the management must keep updating with the market specially in eCommerce, technology, store remodels and other customer initiatives, such as online grocery locations. Which they mention it in the annual report that

Feed back:

Capital feeeeed baaaack :

, current portion of long term debt cannot be a negative.  Since you did not include capital lease in your long term debt numbers, you cannot calculate interest rate based on interest/debt because interest also includes interest on capital lease.  income tax 4281/11460. you need to correct the numbers.  Does it seem logical that income tax expense would be .03%?  you added a calc for cost of equity which is incorrect.  shares outstanding is not correct.  see f/n#3 page 61.  interest rate Keyed in must be decimal form, and your answers need to be decimals (such as .05 for 5%) what did you learn about walmart's beta, it's cost of capital, etc, not looking for general definition here.  please revise this for submission as part of final project.

References

Atkinson, W. (2003). Enterprise risk management at Wal-Mart. Risk Management, 50(12), 36-40.

Célérier, C., & Vallée, B. (2013, July). What drives financial complexity? A look into the retail market for structured products. In A Look into the Retail Market for Structured Products (July 1, 2013). Paris December 2012 Finance Meeting EUROFIDAI-AFFI Paper.

Haiven, M., & Stoneman, S. (2009). Wal-Mart: The panopticon of time. Globalization Working Papers, 9(1).

The annual report Walmart 2018 :

https://s2.q4cdn.com/056532643/files/doc_financials/2018/annual/WMT-2018_Annual-Report.pdf

201920202021

sales509,735.67 519,304.66 529,053.28

cost of sales379,810.66 386,335.52 392,972.47

Op . Ex111,585.74 116,903.36 122,474.39

Op . IN18,339.27 16,065.78 13,606.43

intrest- -

debit1,954.36 1,931.00 1,907.92

Capital lease 300.92 257.24 219.91

Intrest income(209.35) (288.33) (397.11)

net intrest 2,045.93 1,899.92 1,730.72

Loss on extinguishment of debt- - -

taxable income 16,293.34 14,165.87 11,875.70

income tax3,881.20 3,274.72 2,763.00

Consolidated net income12,412.15 10,891.15 9,112.70

attributable to noncontrolling interest (892.63) (1,205.44) (1,627.86)

net income 11,519.51 10,891.15 7,484.83

regular scenario

20182017average

2.98%0.78%1.88%

3.36%0.08%1.72%

4.57%4.96%4.77%

-10.22%-5.56%-7.89%

-3.23%0.84%-1.20%

8.98%-38.00%-14.51%

52.00%23.46%37.73%

-3.93%-8.11%-6.02%

-26.22%-5.27%-15.75%

-25.85%-5.40%-15.63%

-26.38%-5.22%-15.80%

1.69%68.39%35.04%

-27.71%-7.15%-17.43%

%changes

201920202021

sales526,260.48 553,520.47 582,192.51

cost of sales391,284.87 411,553.20 432,871.42

Op . Ex105,923.39 111,410.16 117,181.14

Op . IN29,052.22 30,557.10 32,139.95

intrest

debit2,080.46 2,188.23 2,301.57

Capital lease 370.23 367.97 387.03

Intrest income(159.87) (113.92) (119.82)

net intrest 2,290.82 2,442.27 2,568.78

Loss on extinguishment of debt

taxable income 26,761.40 28,114.83 29,571.16

income tax4,838.28 5,088.90 5,352.50

Consolidated net income21,923.12 23,025.93 24,218.66

attributable to noncontrolling interest (421.33) (443.16) (466.11)

net income 21,501.79 22,582.78 23,752.55

best scenario

20182017average

2.98%0.78%1.88%5.18%

%changes

201920202021

sales504,227.40 508,141.95 512,086.89

cost of sales379,810.66 386,335.52 392,972.47

Op . Ex111,585.74 116,903.36 122,474.39

Op . IN12,831.00 4,903.08 (3,359.96)

intrest

debit1,954.36 1,931.00 1,650.76

Capital lease 300.92 257.24 219.91

Intrest income(209.35) (288.33) -397.11

net intrest 2,045.93 1,899.92 1,473.56

Loss on extinguishment of debt

taxable income 10,785.07 3,003.16 -4,833.52

income tax3,881.20 3,274.72 2,763.00

Consolidated net income6,903.88 (271.56) -7,596.53

attributable to noncontrolling interest (892.63) (1,205.44) -1,627.86

net income 6,011.24 (1,477.00) -9,224.39

worst scenario