Description

In this portion of your report you will research the annual report of your chosen company and begin to formulate an opinion of the current overall financial health of the company and its health in the recent past. You will use the skills and content you mastered in your adaptive coach this week, as well as the information from your company’s annual reports to analyze the company’s current and recent financial condition and complete the content within this section.

Include the following content in this section. Using the financial reports of your chosen company, evaluate the financial performance of your company by creating a complete financial statement review.

Review all three accounting statements and compare each of these statements to statements for the previous three years. Describe any positive or negative trends that emerge from the accounting statement data and comparisons providing a detailed explanation of the factors that lead to these trends. Assess potential weaknesses in the financial statements for your company.

Solution

Introduction

Walmart is an American retail firm that operates thousands of stores in form of hypermarkets, discounts, and grocery stores with its headquarters in Arkansas (Wells & Ellsworth, 2016). The retailer which was founded in 1962, is now the largest in terms of revenue across the world (Wells & Ellsworth, 2016).

Profitability.

In the last three years, the profitability of Walmart, as shown by its gross profit margin decreased in 2018 and has remained constant in 2019. The net margin however, decreased from 3% in 2017 to 2% in 2018 and then to 1% in 2019, as shown in Appendix 1. The decreasing net margin is a result of decline in net profit due to the high cost of operation. The return on capital employed of Walmart also decreased in both 2018 and 2019 compared to 2017 due to decreasing net income and equity……………………………To access the rest of the solution for $5, please click on the purchase button.