Comprehensive Financial Analysis

Format of the Walmart Research Paper

In this research paper, you will dig deep into the financial statements of W almart. You

will analyze the company’s past financial performance to help you forecast their future

business, profitability, and cash flow. You will use these results to forecast the value of

the company; what YOU think the company is actually worth today. You will compare

your value to the current stock price, explaining any differences.

This is how decisions to buy and sell stock, and to buy and sell companies are made

every day all over the world. The nightly business news is full of the “buy, sell, and hold”

recommendations derived from analysis like this. I bet those jobs pay very nicely, don’t

you!

Your paper must include the following criteria in addition to a title and references page:

Executive Summary: This is a 1-page summary of the entire paper that highlights the

key results of your analysis and the resulting conclusions, and a summary of their

defense.

Table of Contents: List of the sections in your paper.

Introduction: The company’s story- past, present, future. Include who they are (include

current events and interesting facts), what do they do (products), when they began (how

long), and where they do business. Discuss the markets they operate in globally, the

current market trends, and their competitors. (This should be at least 2- pages, likely

more.)

Financial History: (3-year analysis of the company’s performance. Your report will

include the ratio results plus an explanation and analysis of each ratio. Include the ratio,

its results, and what the results mean for the company. (Liquidity and Debt, Asset

Management, Profitability, and Market ratios. See ratio detail below.) W ere there

changes in the ratios? W hat could have caused the change? You must include an

evaluation section of what each type of (LAPM) ratio means over the three years, then

an overall comparison to validate your conclusion. (Show you understand and know the

ratios.)

Liquidity & Debt

Ratios

2018 2017 2016

Current xxx xxx xxx

Quick xxx xxx xxx

Total Debt to Total

Assets

xxx xxx xxx

After each LAPM box you will include your words regarding the ratios in that box. Focus

on demonstrating your understanding of what the individual ratio means and your

assessment of W almart’s financial conditions based on the results. The paper should

include an individual evaluation section for each ratio, over the three years, and an

overall comparison to validate your conclusion of W almart’s financial condition.

Asset Management

Ratios

2018 2017 2016

Inventory Turnover xxx xxx xxx

Fixed Asset Turnover xxx xxx xxx

Total Asset Turnover xxx xxx xxx

Here you should include an individual evaluation section for each ratio ( over the three

years) then an overall comparison to validate your conclusion. Show you know and

understand the ratios.

Profit Ratios 2018 2017 2016

Profit Margin on

Sales

xxx xxx xxx

Return on Assets xxx xxx xxx

Return on Equity xxx xxx xxx

Here you should include an individual evaluation section for each ratio ( over the three

years) then an overall comparison to validate your conclusion. Show you know and

understand the ratios.

Market Ratios 2018 2017 2016

Price Earnings Ratio

(PE)

xxx xxx xxx

Market to Book xxx xxx xxx

Here you should include an individual evaluation section for each ratio ( over the three

years) then an overall comparison to validate your conclusion. Show you know and

understand the ratios.

Financials Today Current year with comparison to a competitor. W hat are they doing?

How are they doing now? Add current events and focus on the current financials.

Include an evaluation for each type of (LAPM) ratio for the current year, then an overall

comparison to validate your conclusion. Include your findings for your competitor.

Liquidity & Debt Ratios 2019 Competition or Industry

Current xxx xxx

Quick xxx xxx

Total Debt to Total Assets xxx xxx

Here you should include an individual evaluation section for each ratio with a reflection

on this year’s comparison to past years. Also, include a comparison to the results of the

competitor you chose or the industry averages. Then, an overall comparison to validate

your conclusion.

Asset Management Ratios 2019 Competition or Industry

Inventory Turnover xxx xxx

Fixed Asset Turnover xxx xxx

Total Asset Turnover xxx xxx

Here you should include an individual evaluation section for each ratio with a reflection

on this year’s comparison to past years. Also, include a comparison to the results of the

competitor you chose or the industry averages. Then, an overall comparison to validate

your conclusion.

Profit Ratios 2019 Competition or Industry

Profit Margin on Sales xxx xxx

Return on Assets xxx xxx

Return on Equity xxx xxx

Here you should include an individual evaluation section for each ratio with a reflection

on this year’s comparison to past years. Also, include a comparison to the results of the

competitor you chose or the industry averages. Then, an overall comparison to validate

your conclusion.

Market Ratios 2019 Competition or Industry

Price Earnings Ratio (PE) xxx xxx

Market to Book xxx xxx

Here you should include an individual evaluation section for each ratio with a reflection

on this year’s comparison to past years. Also, include a comparison to the results of the

competitor you chose or the industry averages. Then, an overall comparison to validate

your conclusion.

Financial Future The story behind your analysis of 5-year proforma forecast of the

income statement for W almart based on the spreadsheet. Your analysis will include why

you chose the specific rate changes you did in your version of the spreadsheet. You will

also provide an analysis of the impact your assumptions had on the value of W almart.

You must submit YOUR completed spreadsheet. Do not attach it to the paper or copy

paste it into the paper. Submit it separately in the same Dropbox as you submit the

paper.

Conclusion In this section include your summary of your findings based on your

complete analysis plus your analysis, with justification, of how much you think W almart’s

stock is worth today. Defend your analysis contrasting it to the actual price of W almart’s

stock today, and make a recommendation as to whether investors should or should not

buy W almart stock. Defend that recommendation.

References

Start your W almart research at the website below. Click on everything and explore. This

website will be the sole source of financial information for this assignment.

W almart, Inc. (n.d.). Retrieved from https://www.msn.com/en-

us/money/stockdetails/financials/fi-126.1.W MT.NYS