Evaluation of Financial Situation of Walmart Company

Abstract

The goal of financial analysis is to provide a reference for financial statement users and help them make relevant decisions. This illustrates the importance of financial analysis to the company. In the process of financial analysis, we will understand the development history of a company, its operating status over a period, and analyze whether the investors should hold shares of the company for long time. The purpose of this thesis is to evaluate Walmart's financial performance based on the financial ststement data from 2014 to 2018. This thesis mainly consists of five parts. The first and final part are introduction and conclusion. In the second part, we will explain the financial analysis methods, including common-size analysis, financial ratio analysis and DuPont analysis. In the third part, we introduce the overview of Walmart, including business areas, industry status, company history, and company characteristics. The fourth part is the key part of the whole thesis. We evaluate the company's financial status based on Walmart's annual financial report for the past five years. In this chapter the important financial ratios will be calculated.