I took a look at the Income statement for Wal-Mart in 2016. The expenses from the operating portion seem to slowly be increasing by about $3,000. The issue is the income from operations is either remaining the same or decreasing. The expenses in 2015 were approximately 93.4 million dollars and in 2016 were 97.0 million. The cost is going up for operations but no increase in the income.
2. 2016 $60239 = .93 2015 $ 63,278 = .97 64619 65,253Looking at the two years, the current ratios are both below 1.0. The current ratio for investors to like what the company is doing is usually a 1.
5 to 3. Wal-Mart is below 1.0 and this type of ratio is not good for a company. When comparing the two years, it is the current assets like cash and receivables have dropped and this is making the company look not horrible but not good. If the ratio of assets to liabilities was going up then it would be better for the company but since it is slowly declining, this look bad for the investors or getting investors. 3. When the statement of cash flow was made, it is broken down into three different categories within the company.
The categories are operating, investing and financing activities. The operating activities are the day to day operations of the company. It is where the sales and cost of goods are reported. It is typically the bigger portion of the statement explaining accounts receivable and payable. Next, the investing activities are the plant operations and assets. The investing activities are more expenses than income but the income that is reported is from the capital assets.
Lastly, financing activities are the short term investments, long term investments, and stocks and dividends. The Financing shows how much other income the company has coming in. 4.
Wal-Mart has restricted stock and performance share units, restricted stock units and other stock. The restricted and performance shares are for shares that vest based on the passage of time and include restrictions to employment. The amount of these shares has decreased in 2016. The restricted stock provides rights to the company stock after a specified time with the company.
These units have significantly increased over the past few years. This statement tells me that the employees are becoming more invested with Wal-Mart because of their time with the company. The employees are becoming more long term and more invested. Other is stocks from the United Kingdom. 5. In the past, I would have jumped at the chance to 8invest with Wal-Mart but not so much anymore.
The reason I say this is because Wal-Mart is not the go to place as much anymore for our everyday needs. With target being a major competitor with better products to offer and the fact that Amazon offers more and more choices for home needs without leaving the comfort of home. For example, I can order goods such as diapers, toilet paper and even can goods and have it delivered straight to my home two days later. I do not see Wal-Mart closing or going bankrupt but it is not the store of choices like it used to be.