Financial Analysis of the Wal-Mart Stores Company

Abstract

Financial analysis is a process of selecting, evaluating and interpreting financial data. The objective of the thesis is to assess the financial performance of Wal-Mart Store Company, based on data from years 2007 to 2011. There are three main parts of the thesis. The first is methodological. There are described the common-size analysis, financial ratio analysis and the pyramidal decompositions. The second part of the thesis gives some basic information about Wal-Mart Store Company. The third part is application. The methodology of financial analysis, which is described in the second chapter, is applied to analyze the financial situation and the development of Wal-Mart Store Company during the selected period. It was found out that: the profitability of the company is good and increasing, activity ratios and solvency ratios are in norm. The problematic are liquidity ratios, which are a bit lower than should be recommended.

Financial analysis is a process of selecting, evaluating and interpreting financial data. The objective of the thesis is to assess the financial performance of Wal-Mart Store Company, based on data from years 2007 to 2011. There are three main parts of the thesis. The first is methodological. There are described the common-size analysis, financial ratio analysis and the pyramidal decompositions. The second part of the thesis gives some basic information about Wal-Mart Store Company. The third part is application. The methodology of financial analysis, which is described in the second chapter, is applied to analyze the financial situation and the development of Wal-Mart Store Company during the selected period. It was found out that: the profitability of the company is good and increasing, activity ratios and solvency ratios are in norm. The problematic are liquidity ratios, which are a bit lower than should be recommended.