The annual reports of Wal-Mart and Target are offered free of charge by way of walmart. com and goal. com. After inspection, the Wal-Mart and target reports include meaningful financial transactions, including the Declaration of Owners Equity, Income Assertion, and "balance sheet". These statements had been obtained through 10-K assertions available on walmart. com and target. com.
In assessing the claims of these firms, Wal-Mart and Target equally provide multi-step Statements of Operations, such as the current and former 2 years economic information.
Picked Data by Statement of Operations
(Dollars in Millions)
Wal-Mart (2002) Wal-Mart (2001) Wal-Mart (2002) Wal-Mart (2001)
Sales$5, 269. 3$4, 870. 3$3, 486. 1$3, 387. 9
Gross Margin1, 413. 41, 310. 5960. 9938. 6
Cash flow from Operations264. 1245. 7193. 9157. zero
Net Income99. 963. 9111. 787. four
A review of key operating info shows that gross annual sales better by 399 million and 98. two million to get Wal-Mart and Target, correspondingly. This triggered Wal-Mart increasing net income simply by 36. 1%, and Goal producing a twenty one. 8% gain over the previous year. When Wal-Mart would seem to have better dramatically, further more review shows that this improvement is due to a large reduction in income taxes, caused by a related loss in operation segment walmart. com. Because segment is usually expected to reduce its failures in the year 2003, look for Wal-Mart to have a even more modest improvement in net income.
Consistent with GAAP, both companies have well-balanced consolidated equilibrium sheets the following:
Selected Info from Consolidated Balance Linens
(Dollars in millions)
Wal-Mart (2002) Focus on (2001) Wal-Mart (2002) Focus on (2001)
A=Assets$2, 995. 4$2, 623. 2$2, 268. 2$2, 179. several
L+Liabilities one particular, 967. 71, 735. one particular $1237. sixty one, 229. 4
SEStockholder's Equity 1, 027. 7888. one particular $1030. 6949. 9
Total Liabilities and Shareholder Equity$2995. 4$2623. 2$2, 268. 2$2, 179. a few
According to the Assertion of Cash Moves, Wal-Mart and Target have got produced drastically larger net cash goes from Operations than net gain. Target provides improved cash flows via operations through effective reduction of A/P, while Wal-Mart utilized disability and the loss on walmart. com to enhance net cash flows. In 2001, Focus on appears to possess expanded, in addition to 2002 the bills started to be payable. This explains the in money from operations over the earlier years. Wal-Mart also has extended to increase, but offers spent substantial funds upon acquisitions and capital assets. With regards to auto financing, Target used the BORSEGANG (OSTERR.) of GameStop to considerably improve money flows via a negative equilibrium. Countering this gain was an increase in credit rating, used to pay for expansion. The net result was a gain of 144% in cash and cash variation over the prior year.
Wal-Mart also were able to improve its negative funds position via financing, having paid down creditors in 2001. This kind of enabled the corporation to borrow additional funds for 2002, and this inflow of cash supplied some of the needed resources to repurchase prevalent stock. The consequence of this was a positive balance in financing and a related improvement in cash and cash equivalents of practically 42%.
Because of both organizations holding numerous subsidiaries, most statements happen to be consolidated to be able to reflect the accounts in the company and it's majority owned subsidiaries.
In Wal-Mart, almost all inventories will be valued over a FIFO basis using the price tag inventory technique; some division and other bills are noted as products on hand costs. Depreciation of house and machines are recorded making use of the straight-line basis for economic statements and an faster basis intended for tax purposes. All revenues are stated as net of believed returns, at the point-of-sale for all of you company's portions, while cash and funds equivalents include all short-term investments with maturity times of ninety days or much less. Pre-opening costs are registered as sustained. Additional paperwork to the economical statements consist of disclosures...