We're Open
+44 7340 9595 39
+44 20 3239 6980

Financial Analysis of Walmart

  100% Pass and No Plagiarism Guaranteed

Financial Analysis of Walmart

Executive Summary

The analysis recommends taking a buy option for the Walmart’s stock. Currently the share price is about $66. Using the discounted cash flow method and Abnormal Earnings Method the share price is valued at $85.67 and $91.35 respectively. This shows that it is likely that the company’s stock is undervalued which leads me to my recommendations. The analysis assumes that the tax will rise to 34%, the company sales will grow by 4.02% and the expenses will grow by 2.0%.

  • Accounting Analysis
  1. Key Accounting Policies

The Company’s fiscal year under the GAAP is made up of 52 or 53 weeks, ending on the Saturday that is closest to the last day of January. The financial statements of Walmart are prepared according to the USA GAAP which affects the assumptions made. Walmart considers cash and cash equivalent as the highly liquid, short term instruments that are purchased with an original maturity that is three months or less Christensen et al., 2015). The company recognizes the revenue at the sales time and the sales return are recognized time when the returns are made. The company uses different accounting methods for the inventory. These are usually valued at the lower of the market or cost as it is determined by the retail accounting method, using the LIFO method for all the US segments’ inventories.

The internal segments of the company are valued using the FIFO method. As such the company inventory valuation is the balance between the two methods. The inventory valuation method affects the ending inventory value and as such it affects the company’s profitability. Other accounting policies adopted by the company include carrying property and equipment at cost, using straight-line method of depreciation, and the long term assets are reviewed for impairment when changes in situation indicate that the carrying amount of the asset cannot be recovered under SFAS No. 144 (Hribar, 2014).

  1. Degree of Accounting Flexibility

Walmart operates in different countries that uses different accounting policies. The retail store also operates an online store that helps it to sell mainly electronics to different people located at different jurisdictions. In this case the company has an average degree of flexibility when it comes to choosing different accounting estimates and policies in certain situations that have an effect on the amount reported in the accompanying consolidated financial statements. For instance, Wal-Mart records large amount of accounts receivable every year from its retail price stores. This means that there exist low likelihood that materially different amounts would be reported. On addition to this, the company has an option on how to amortize or depreciate intangible assets like goodwill. The company uses the financial accounting standard N0 142. Concerning intangible assets and good will. According to these accounting policies the company can have difference between estimable and…………….

100% Plagiarism Free & Custom Written,
Tailored to your instructions

International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

UK Registered Company # 11483120

100% Pass Guarantee


View our samples written by our professional writers to let you comprehend how your work is going to look like. We have categorised this into 3 categories with a few different subject domains

View Our Samples

We offer a £ 2999

If your assignment is plagiarised, we will give you £ 2999 in compensation

Recent Updates


  • Title: Financial Analysis of Walmart
  • Price: £ 99
  • Post Date: 2021-04-26T11:16:12+00:00
  • Category: Research Paper Queries
  • No Plagiarism Guarantee
  • 100% Custom Written

Customer Reviews

Financial Analysis of Walmart Financial Analysis of Walmart
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

Oh my god! This writing company has saved me from so many bothering and figured out my problem in the best way possible. I am not fond of reading and when this book review was given to me as part of my coursework, I went into depression. But I must say, my writer came up with an amazing book review covering all the major aspects of the book nicely. I am waiting for other assignments to come so that I would come here again. The place is good and quite reasonable as well which makes it easy for me to manage my budget.
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

CIPD assignment is not my cup of tea. That’s the reason I sought out this place suggested by my friend. I would say that the writers of this site are really admiring. I was assigned the best CIPD writer that solved all my issues. He explained to me the difficult topics so well that now I am able to talk on those topics eloquently. I owe my writer a huge thanks and praise! And yes, I would recommend other students as well to come to instaresearch.co.uk for the top CIPD assignment help.