Analyzing the Financial Statements of the World’s Retailer

The Wal-Mart grapheme is intended for an introductory or main course on fiscal Statement Analysis. It may also be useful within a Corporate Finance/Financial Management course. After a conformation on financial statements and liquidity, internetability and solvency ratios and some brief examples discussed by the subscriber students should be capable of making a financial analysis of Wal-Mart. Students throne be asked to make this analysis in class, or to prepare the eccentric person outside the classroom, and to present it.Ideally, the causa work is conducted in groups of 4 to 6 students, and it typically takes between 1 to 1. 5 hours (for the analysis itself obviously, drafting a written report or presentation is more than time consuming). The Wal-Mart case is aimed at both undergraduate and graduate students, and for general management programmes/MBAs as well as finance students obviously, for the latter group, a much more fine-grained analysis, extensive discussion and adequate linking among various financials and between the poem and Wal-Marts business is required.Evidently, the lecturer should highlight many more expand in a class of finance students. In the teaching note, the authors counterbalance provide a detailed discussion of Wal-Marts balance sheet, profit and loss account and cash flow statement, mainly based upon viridity 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 evolution 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.