Walmart Case Study
Essay title: Walmart Case Study
Background Information
Wal-Mart Inc.
Corporate Headquarters
702 Southwest 8th street
Bentonville, Ar 72716-8001
Top Executives
President and CEO: H. Lee Scott
Chairman of the Board: S. Robson Walton
Chairman, Executive Committee of the Board: David D. Glass
Chief Financial officer & Executive Vice President: Thomas M. Schoewe
Industry
General Merchandise, SIC code: 5399
Divisions
Wal-mart stores
Sam’s Club
International
Major Products
Hardware
House-wares
Auto Supplies
Small Appliances
Domestics
Grocery
Candy
Tobacco
Pharmaceuticals
Electronics
Health & Beauty Aids
Sporting Goods
Toys
Stationary
Jewelry
Shoes
1-hour Photo
Major Competitors
Target
Sears Roebuck & Co.
Kmart
Costco Wholesale
Most Successful Wal-mart Brands
Ol’ Roy
Great ValueТ
EquateТ
Financial Analysis
Profitability
Wal-mart experienced sales growth of 20% in the fiscal year of 2000. This impressive increase is a direct result of the companies expansion program. Wal-mart has also acquired a few international stores, which are doing very well and adding to the companies’ profit. As the table shows wal-mart is no stranger to climbing profits, in fact wal-mart has managed to increase sales by no less than 12% (typically more) each year for 11 consecutive years.
Net Earnings
Net Sales
Profitability
$5,377
$165,013
0.0326
$4,430
$137,634
0.0322
$3,526
$117,958
0.0299
$3,056
$104,859
0.0291
$2,740
$93,627
0.0293
Analysis
Liquidity
Wal-marts’ liquidity has been decreasing since 1996, which is a good sign from a growing company.
In 2000 wal-marts liquidity dropped off drastically, this is on account of their expansion projects. They are willing to take some short-term risks, because they are very confident it will pay off down the road. A lot of wal-marts’ money is being pumped into the super centers and also financing the over seas expansion.
Current Assets
Short-term Debt
Liquidity
$24,356
$25,803
0.9439
$21,132
$16,762
1.2607
$19,352
$14,460
1.3383
$17,331
$11,454
1.5131
$15,338
$9,973
1.5380