A financial analysis of Wal-Mart stores for the fiscal years 2001 and 2002.
This paper examines the financial status of Wal-Mart, which is described as the world’s largest retailer. The paper demonstrates that the company is a consistent performer according to its key ratios: return on equity, return on assets and return on investment. The author states that the effective management at Wal-Mart is responsible for the positive financial statistics in the current gloomy economy.
The success of Wal-Mart’s business model is reflected in Wal-Mart’s Income Statement, Balance Sheet and Cash Flow Statement for 2001 and 2002 (see Appendix 1). It is apparent that Wal-Mart is growing its business and more important, managing it well. Overall sales in 2002 increased by 13.8% inspite of recessionary economic conditions and the aftermath of September 11th. It is more than probable that the percentage growth would have been higher than the 2001 figure of 15.9% in a more buoyant economy.