Finance
Trpmonnz
Finance.docx|
Income statements |
Walmart |
Amazon |
||
|
|
Dollars ($million) |
Percentage of sales |
Dollars ($million) |
Percentage of sales |
|
Revenue |
485,873 |
100.00% |
177,866 |
100.00% |
|
Gross profit |
124,617 |
25.65% |
40,683 |
22.87% |
|
Operating income |
22,764 |
4.69% |
4,106 |
2.31% |
|
Interest expense |
2,367 |
0.49% |
848 |
0.48% |
|
Net income |
13,643 |
2.81% |
3,033 |
1.71% |
|
Earnings per share |
|
4.4 |
|
6.32 |
|
Balance sheets |
Walmart |
Amazon |
||
|
|
Dollars ($million) |
Percentage |
Dollars ($million) |
Percentage |
|
Current assets |
57,689 |
29.01% |
60,197 |
45.84% |
|
Current liabilities |
66,928 |
33.66% |
57,883 |
44.08% |
|
Total assets |
198,825 |
100% |
131,310 |
100% |
|
Total liabilities |
121,027 |
60.87% |
103,601 |
78.90% |
|
Network Capital (current assets-current liabilities) |
-9,239 |
N.A. |
2,314 |
N.A. |
|
Stockholder's equity (total assets-total liabilities) |
77,798 |
N.A. |
27,709 |
N.A. |
|
Cash flow statements |
Walmart |
Amazon |
|
|
Dollars ($million) |
Dollars ($million) |
|
Cash flow from operations |
31,530 |
18,434 |
|
Cash flow from investment |
(13,987) |
(27,819) |
|
Cash flow from finance |
(18,292) |
9,860 |
|
Net charge in cash |
(749) |
475 |
|
Beginning cash |
6,867 |
25,981 |
|
ending cash |
6,118 |
26,456 |
|
Liquidity Ratios |
Walmart |
Amazon |
||
|
Current ratios (current assets/current liabilities) |
57,689/66,928 |
0.86 |
60,197/57,883 |
1.04 |
|
Acid-test ratios (cash + account receivable/current liabilities) |
(6,867+5,835)/66,928 |
0.19 |
(30,986+13,164)/57,883 |
0.76 |
|
Day in receivables [accounts receivable/ (annual credit sales/365)] |
5,835/(485,873/365) |
4.38 days |
13,164/(177,866/365) |
27.01 days |
|
Day in inventory [inventory/(annual cost of goods sold/365)] |
43,046/(361,256/365) |
43.86 days |
16,047/(137,183/365) |
42.70 days |
|
Operating Ratios |
Walmart |
Amazon |
||
|
Operating return on assets (Operating profits/total assets) |
22,764/198,825 |
0.11 or 11% |
4,106/131,310 |
0.03 or 3% |
|
Operating profit margin (operating profits/sales) |
22,764/485,873 |
0.05 or 5% |
4,106/177,866 |
0.02 or 2% |
|
Total asset turnover (sales/total assets) |
485,873/198,825 |
2.4X |
177,866/131,310 |
1.3X |
|
Fixed asset turnover (sales/net fixed assets) |
485,873/114,178 |
4.2X |
177,866/48,866 |
3.6X |
|
Financing ratios |
Walmart |
Amazon |
||
|
Debt ratios (total debt/total assets) |
121,027/198,825 |
60.87% |
103,601/131,310 |
78.90% |
|
Times interest earned (operating profits/interest expense) |
22,764/2,367 |
9.6X |
4,106/177,866 |
4.8X |
|
Return on Capital |
Walmart |
Amazon |
||
|
Return on equity (net income/total common equity) |
13,643/77,798 |
17.54% |
3,033/27,709 |
10.95% |
|
Shareholder Value Ratios |
Walmart ($) |
Amazon ($) |
|
Price/Earnings ratio |
3.2X |
6.1X |
|
Price/Book ratio |
25.7X |
50.9X |
5) Identify any key issues or problems facing each company. (30% of grade)
In all likelihood, there will be several different factors at play. Find at least two
6) Investment Recommendation. (15% of grade)
