This website uses cookies to ensure you have the best experience. Learn more

Ratio Analysis & Statements Of Cash Flow Final Report

3167 words - 13 pages

Final PaperStakeholders "rely on the company's periodic financial statements to provide basic information on the profitability of the firm" (Brealey et al, 2003, pg. 449). The information included in this paper will illustrate Wal-Mart and Target's history, products and services, and annual reports. These reports are intended to provide investors, creditors, and shareholders a glimpse into the financial successes and challenges a company goes through in a given year. Team A will use financial ratios to compare and analyze data from Wal-Mart and Target's balance sheet, income statement, and statement of cash flow. The paper will also highlight internal events that affect the company's cash position including cash generated by operating, financing, and investing activities. The impact of variable expenses will be discussed and five operating expenses will be given for three fiscal years along with an evaluation of operating leverage. Finally, Team A will compare areas of cash flow, operating, risk management, and profitability analysis for Target and Wal-Mart.History of Wal-MartOn July 2, 1962, Walton opened the first Wal-Mart store, Wal-Mart Discount City. Within five years the company expanded to 24 stores across the state of Arkansas and reached $12.6 million in sales. The company was incorporated as Wal-Mart Stores, Inc. on October 31, 1969, and in 1970 opened its home office in Bentonville, Arkansas, and its first distribution center (Wal-Mart, 2007). The company began trading stock at this time as a publicly held company on October 1, 1972, and was listed on the Ney York Stock Exchange shortly thereafter (Wikipedia, 2007). Wal-Mart continued to grow rapidly during the 1980s and by its 25th anniversary in 1987; there were 1,198 stores with sales of $15.9 billion and 200,000 associates (Wal-Mart, 2007).History of TargetIn 1962, the Dayton Company, using a concept developed by John F. Geisse, entered discount merchandising by opening its first Target discount store in Roseville, Minnesota. The name "Target" originated from Dayton's publicity director, Stewart K. Widdess, and was intended to prevent consumers from associating the new discount store chain with the department store (Target, 2007). Target Stores lost money in the initial years; however, in 1965 Target reported its first gain with sales reaching $39 million, allowing a fifth store to open in Minneapolis. Target Stores expanded outside of Minneapolis. In 1967, the Dayton Corporation was established and went public with its first offering of common stock (Wikipedia, 2007).Products and ServicesWal-Mart and Target are two very similar companies in the retail industry, providing many of the same products and services at low prices. Wal-Mart services include garden, automotive services, optometry, gift registry, photograph developments, portrait studio, grocery (at selected Wal-Mart's) pharmacy and layaway. Wal-Mart provides Internet shopping from a website. In addition, Wal-Mart provides...

Find Another Essay On Ratio Analysis & Statements of Cash Flow Final Report

Cash flow analysis of Hindustan Unilever

903 words - 4 pages - Rs.20,000 Rs.20 75 - - Rs.1,20,000 Rs.30,000 - 75 6,000 Rs.25,000 Rs.10,000 - Rs.30 - 5,000 Rs.50,000 - Rs.15,000 POR Ltd. Report the following results for the year ended 31st March,2008 Sales Rs.2,00,000,Variable cost Rs.1,20,000, Fixed cost Rs.50,000, Net Profit Rs.30,000. Construct a Profit Volume graph and also verify the same with the mathematical analysis. Q.3 From the following

Cash Flow Analysis

1450 words - 6 pages Cash Flow Analysis1. Cash ratio is known as "absolute current ratio", derived from further correction based on quick ratio, is most conservative indicator to evaluate short-term liquidity and to reflect direct debt-paying ability of the company. Cash ratio will examine the actual liquidity of the company from dynamic points of view of cash inflow and outflow, so is a more cautious indicator to evaluate short-term solvency of a company. This

Ratio Analysis and Statement of Cash Flows Paper

1430 words - 6 pages Dell verses GatewayThe two publicly traded companies chosen were Dell and Gateway. Both of these companies are well known for their technology in the personal computer industry. Based on the ratio analysis and statements of cash flows Dell is doing better in the market than Gateway.Record global product shipments, revenue, operating and net income, earnings per share and cash from operations made Dell's fiscal year 2005 the best reporting period

FIN 324 - Ratio Analysis and Statement of Cash Flows

1806 words - 7 pages and profitability are shown in the income statement. Assets are also shown in this report and can forecast risk for the company. A balance sheet is another tool that can be used in the gaming industry. A balance sheet is a financial statement that shows the value of the firm's assts and liabilities at a particular time. (Brealey, 2003) This ratio will help the company forecast its assets and liabilities for the upcoming years.Leverage ratios are

Equity, Cash Flow, and Notes Analysis Paper of Samsung Electronics

1444 words - 6 pages willingness to make industry-leading investments in the future. (BO 2003) Investment is one of the most reliable forms of income that will enhance core competitiveness for the future. An example of how well they're growing: 2003 Owners Equity Income had an all time record high of $25,196,084 (USD) compared to 2002 figures, $21,989,429 (USD). They gained a difference of $3,206,655.Samsung's Statement of Cash Flow is pretty straight forward. The

An analysis of Procter & Gamble equity, cash flow, and notes

1982 words - 8 pages , prestige fragrances and skin care. Pet Nutrition and care products include pet health nutrition products.P&G's goal is to deliver continue sales growth in order to exceed its financial goals. With a strong and consistent performance they were able to meet their goals in the fiscal year 2004: Volume was up 17%, sales increase by 19% to $51.4 billion and earnings were up 25% with a free cash flow of $7.3 billion. To analyze where this increase come

Ratio Analysis and Statement of Cash Flows for Ford and GM

936 words - 4 pages these goals, each company distributes annual financial statements. With these financial statements, each company can be measured by analyzing factors such as return on sales, current ratio, earnings per share (EPS) debt ratio, and their price-earning ratio.LiquidityLiquidity can be defined as having enough money on hand to pay bills when they are due and to take care of unexpected needs for cash, while profitability refers to the ability of business

Analysis of Financial Statements

2370 words - 9 pages million. The total liabilities and shareholders' equity equaled $20,569.8million.The Income Statement showed a net income of $1,355 million.The Cash Flow Statements show the net amount collected and paid out from Operating Activities was $1,742.4 million, the net amount used in Investing Activities was ($4,593.2) million, and the net amount used in Financing Activities was $2,868.1 million.The Statement of Retained Earnings showed net earnings of

Bibliography Regarding Statement of Cash Flow in Finance

3029 words - 13 pages Literature review Jaan Alver, 2005, Preparation and Analysis of Cash Flow Statements: The Net Profit Approach and Operating Profit Approach According to this paper the author states that a cash flow statement is vital as a component of a complete set of financial statement prepared in congruity with IFRS and also US GAAP for all business undertakings. IAS 7 sets out a formal structure for the cash flow statement. Cash flows must be categorized

Final Report Analysis

2009 words - 8 pages customer service each and everyday. (Woolworths Limited, 2003)2. Principal areas of judgmentInformation of Financial reports such as Balance Sheet, Income Statement, Cash Flow, which should be objective, reliable, independent and trustworthy to their interested reader. Figures presented in these financial statements provide us with essential information to evaluate the performance of company. In addition, ratio analysis has been the principal

Financial Ratio Analysis of Microsoft

889 words - 4 pages and experience. Most risks that one can encounter when investing in Microsoft is when there is new research. Microsoft is known for its innovation and risks they disregard when it is time for a state of the art software, gaming console, and research on products.CONCLUSIONThe Statements of Cash Flow indicates that Microsoft has a healthy amount of cash and cash equivalents and a steady increase in net income over the last three years. Besides, the

Similar Essays

Ratio Analysis And Statement Of Cash Flow: Wendy's Vs. Mc Donald's

1502 words - 6 pages Cash flow is the lifeblood of all businesses, regardless of size; if a company has no cash flow it would have to cease doing business. For the McDonald's Corporation, cash flow from operating during the time period ending December 2004 was $3,903,600,000. The balance sheet of McDonald's also reveals that the cash flow generated by investing was $1,383,100,000 through December 31, 2004, according to annual data, and cash flow from financial

Ratio Analysis And Statement Of Cash Flow: The Proctor And Gamble Company

1467 words - 6 pages Productivity. Free cash flow productivity is defined as the ratio of free cash flow to net earnings. The Company's target is to generate free cash flow at or above 90% of net earnings. Free cash flow productivity is one of the measures used to evaluate senior management." (P&G)Return on Sales Ratio (Profit Margin)Profit Margin= Net Income $7,257.00 = .2610Sales $27,804.00This ratio shows a difference of $0.13 between the financial years of

Understanding Financial Statements And Cash Flow

1360 words - 6 pages in understanding the basics of four different types of financial statements paint a picture of a business’s cash flow. The latter part of the paper will summarize the importance of a company’s financial statement regarding its success in critical decisions to improve its market share in the global market. Everyone wants to be successful. Most people measure success on the basis money. The world operates its daily activities around

Frs 1(Cash Flow Statements) & Frs 3 (Reporting Financial Performance)

2098 words - 8 pages resourcesFRS 1 (revised) also ensures its second objective of cash flow statements is met by a thorough overhaul of the notes to the cash flow statement.Note 1, 'Reconciliation of operating profit to net cash inflows from operating activities' remains unchanged, but the other FRS 1 notes, 'Analysis of changes in cash and cash equivalents during the year', 'Analysis of the balances of cash and cash equivalents during the year', and 'Analysis of changes