Will attachPart 1: Comprehensive Financial Analysis In this part of your research paper, you will...

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Will attachPart 1: Comprehensive Financial Analysis In this part of your research paper, you will dig deep into the financial statements of Walmart. You will analyze the company’s past financial performance to help you forecast their future business, profitability, and cash flow. You will use these results to forecast the value of the company; what YOU think the company is actually worth today. You will compare your value to the current stock price, explaining any differences. This is how decisions to buy and sell stock, and to buy and sell companies are made every day all over the world. The nightly business news is full of the “buy, sell, and hold” recommendations derived from analysis like this. I bet those jobs pay very nicely, don’t you! This part of your assessment should approach 20- pages. Refer to the following documents found in Course Documents to help you with this part of the assessment: · Format for Part 1 (Use this as a guide.) · Walmart Proforma Income Excel Spreadsheet · Walmart Ratio Solutions 2017 LAPM (Use this as a guide.) I have attached these for you!!!!!**** Your paper must include the following criteria in addition to a title and references page: · Executive Summary: This is a 1-page summary of the entire paper that highlights the key results of your analysis and the resulting conclusions, and a summary of their defense. · Table of Contents: List of the sections in your paper. · Introduction: The company’s story- past, present, future. Include who they are (include current events and interesting facts), what they do (products), when they began (how long), and where they do business. Discuss the markets they operate in globally, the current market trends, and their competitors. (This should be at least 2- pages, likely more.) · Financial History: (3-year analysis of the company’s performance. Your report will include the ratio results plus an explanation and analysis of each ratio. Include the ratio, its results, and what the results mean for the company. (Liquidity and Debt, Asset Management, Profitability, and Market ratios. See ratio detail below.) Were there changes in the ratios? What could have caused the change? You must include an evaluation section of what each type of (LAPM) ratio means over the three years, then an overall comparison to validate your conclusion. (Show you understand and know the ratios.) · Financials Today: Current year with comparison to a competitor. What are they doing? How are they doing now? Add current events and focus on the current financials. Include an evaluation for each type of (LAPM) ratio for the current year, then an overall comparison to validate your conclusion. Include your findings for your competitor. · Financial Future: The story behind your analysis of your forecast of the future based on your spreadsheet. Why did you choose the specific growth rates? What impact did they have on the value of Walmart? Use the Walmart Proforma Income Excel spreadsheet located in Course Documents. · Conclusion: Your recommendation with justification of how much Walmart is worth. How much do you forecast each share to be worth? Defend your choice. Required Ratio Analyses Liquidity and Debt Ratios (L) · Current · Quick · Total Debt to Total Asset Asset Management Ratios (Activity A) · Inventory Turnover · Fixed Asset Turnover · Total Asset Turnover Profitability Ratios (P) · Profit Margin on Sales · Return on Assets · Return on Equity Market Value Ratios (M) · Price Earnings Ratio · Market/Book Start your Walmart research at the website below. Click on everything and explore. This website will be the sole source of financial information for this part of the assessment. Walmart, Inc. (n.d.). Retrieved from https://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.WMT.NYS PART 2******** Part 2: Natural Resources and the Effects on Business Add this part of the assessment after Part 1 in your paper. Corporations often consume natural resources in our society. Overuse or mining of such natural resources can lead to problems in the natural world. In addition, our society has been using technology to improve a corporation’s position, either financially or through improved resource allocation. In this part of the assessment, you are to research a real-world issue and create a solution to the problem. Read the following articles: Curry, M. (n.d.). Ethics in the workplace-What’s it about? Business Training Media. Retrieved from http://www.businesstrainingmedia.com/article-businessethics.php Dimitriades, Z. S. (2007). Business ethics and corporate social responsibility in the e-economy: A commentary. Electronic Journal of Business Ethics and Organization Studies, 12(2). Retrieved from http://ejbo.jyu.fi/articles/0701_1.html Martin, K., Shilton, K. & Smith, J. (2019). Business and the ethical implications of technology: Introduction to the symposium. Journal of Business Ethics. Retrieved from https://link.springer.com/article/10.1007/s10551-019-04213-9 Then, answer the following questions: 1. Identify a problem in our natural world that is the result of overuse or by over mining of one or more natural resources to advance a corporation. 2. Prepare a summary that includes the negative effects on the natural world, how technology was used, and the benefit to the corporation. 3. Add an additional summary to propose a solution using technology to solve the problem. Explain how the proposed solution continues to benefit the corporation financially. Your summary should also show how this solution could create a significant improvement in the natural world. The goal is to use your critical thinking skills to identify a problem and propose a solution that leaves the corporation and the environment in the best shape possible with the help of technology. Minimum Submission Requirements · Proper notification of any Resubmission, Repurposing, or Reworking of prior work per the Purdue Global Student Coursework Resubmission, Repurposing, and Reworking Policy Resource. · This assessment should include both Part 1 and 2 in a Microsoft Word® document (Part 1 should be a minimum of 20- pages), in addition to the title and reference pages. There is no minimum page count for Part 2. · You must also submit your completed Walmart Proforma Income spreadsheet to the Dropbox. · Respond to the questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions. Your paper should be highly organized, logical, and focused. · Your paper must be written in Standard English and demonstrate exceptional content, organization, style, and grammar and mechanics. · Your paper should provide a clearly established and sustained viewpoint and purpose. · Your writing should be well ordered, logical and unified, as well as original and insightful. · A separate page at the end of your research paper should contain a list of references, in current APA style. Use your textbook, the Library, and the Internet for research. · Be sure to include references for all sources and to cite them using in-text citations where appropriate. Your sources and content should follow current APA style. Review the writing resources for APA formatting and citation found in Academic Tools. Additional writing resources can be found within the Academic Success Center. · Your submission should: · include a title page; · be double-spaced; · be typed in Times New Roman, 12 -point font; and · be free of spelling or punctuation errors.   Walmart 	Walmart --- Pro Forma Income Statements ($ in millions) M&A - Current Value Estimate - 2019 Actual								Terminal Value 	Year	Fiscal Year	2019	2020	2021	2022	2023	2024	Year 5 	Sales		$514,405	$524,693	$535,187	$545,891	$556,809	$567,945	Growth Rate		2.00% 	Variable Costs	75.00%	$385,301	$393,520	$401,390	$409,418	$417,606	$425,959 	Gross Profit		$129,104	$131,173	$133,797	$136,473	$139,202	$141,986 	Fixed Costs - SG&A		$96,469	$98,398	$100,366	$102,374	$104,421	$106,510			2.00% 	Other Income		($4,800) 	Depreciation		$10,678	$10,892	$11,109	$11,332	$11,558	$11,789			2.00% 	EBIT		$17,157	$21,883	$22,321	$22,767	$23,223	$23,687 	Taxes	23.00%	$4,790	$5,033	$5,134	$5,237	$5,341	$5,448 	Net Income		$12,367	$16,850	$17,187	$17,531	$17,882	$18,239 	EPS - Before Interest Exp.		$4.19	$5.71	$5.83	$5.94	$6.06	$6.18 			Cash Flows 	Operating Cash Flow			$27,742	$28,297	$28,862	$29,440	$30,029 	Residual Value	(OFFER)							$364,783.27	PE Mulitple	20	assumed 	Capital Spending	0		0	0	0	0	0 	Cash Flow 	$0		$27,742	$28,297	$28,862	$29,440	$394,812 	Discount Rate (WACC)	11.00%	assumed 	Net Present Value	$322,757.14	Our current estimate of WalMart's total value in Millions 	Shares Outstanding	2,950,000,000 	Value Per Share	$   109.41	Based on your growth, PE, WACC, and Outstanding Shares Assumptions  			this is your valuation of Walmart's shares 	Students, you change the numbers above in RED to reflect your analysis of the company … the value of the  	company will update based on you assumptions … 	Assumptions of growth, cost structure, taxes, PE Ratio, WACC, and Shares Outstanding. Sheet2 Sheet3   Ratios 	Walmart 2017 Ratios 	Liquidity & Debt				Ratios 	Current	Current Assests/Current Liabilites			0.8620 	Quick	(CA - Inventories)/Current Liabilites			0.2189 	Total Debt to Total Asset	Total Debt/Total Assests			59.49% 	Asset Management 	Inventory Turnover	CGS/ Inventories		per year	8.39 	Fixed Asset Turnover	Sales/ Net Fixed Assests			4.26 	Total Asset Turnover	Sales/Total Assets			2.44 	Profitability 	Profit Margin on Sales	Net Income/Sales			2.81% 	Return on Assests	Net Income/Total Assets			6.86% 	Return on Equity	Net Income/Common Equity			17.54% 	Market Value 	Price Earnings Ratio	Price of Shares/Earning Per Share			14.92 	Market/Book	Market Price/Book Value (Per Share)			2.58 Sheet2 Sheet3   MT482M6  Format for Part 1  In this part of your research paper, you will dig deep into the financial statements of  Walmart. You will analyze the company’s past financial performance to help you  forecast their future business, profitability, and cash flow. You will use these results to  forecast the value of the company; what YOU think the company is actually worth today.  You will compare your value to the current stock price, explaining any differences.  This is how decisions to buy and sell stock, and to buy and sell companies are made  every day all over the world. The nightly business news is full of the “buy, sell, and hold”  recommendations derived from analysis like this. I bet those jobs pay very nicely, don’t  you!  Your paper must include the following criteria in addition to a title and references page:  Executive Summary: This is a 1-page summary of the entire paper that highlights the  key results of your analysis and the resulting conclusions, and a summary of their  defense. Table of Contents: List of the sections in your paper. Introduction: The company’s story- past, present, future. Include who they are (include  current events and interesting facts), what do they do (products), when they began (how  long), and where they do business. Discuss the markets they operate in globally, the  current market trends, and their competitors. (This should be at least 2- pages, likely  more.) Financial History: (3-year analysis of the company’s performance. Your report will  include the ratio results plus an explanation and analysis of each ratio. Include the ratio,  its results, and what the results mean for the company. (Liquidity and Debt, Asset  Management, Profitability, and Market ratios. See ratio detail below.) Were there  changes in the ratios? What could have caused the change? You must include an  evaluation section of what each type of

Bidusha · Accepted Answer

Research Paper on Walmart		4
RESEARCH PAPER ON WALMART
Executive Summary
Reviewing the numerous financial records utilized by the company might reveal a variety of facts in the corporate sector. You can compare their own financial statements from different periods of time, or compare businesses to one another, with the average figure discovered during an examination of all firms in that industry. Consumers, shareholders, creditors and lenders, as well as management and other businesses, utilize financial analysis.
A comparison of the industry in 2020 will be made between the years 2017 and 2019. In addition, we had to determine the market ratios for liquidity, asset management, profitability, and efficiency. Those dates ranged from 2017 to 2019. Liquidity measures included the current ratio, the quick ratio, as well as the debt-to-assets ratio and total debt. Inventory turnover, fixed asset turnover, and total asset turnover comprised the asset management ratios. Profit margin on sales, return on assets, and return on equity were the three profitability ratios that were used. Finale: The price earnings ratio and the market-to-book ratio were used in calculating the market-to-book ratio. We found out where Walmart was doing well and where it might improve.
	In order to establish what the optimal ratio analysis is for a certain circumstance; you must first determine what information you want. Walmart is one of the bigger stores that has become a household name throughout the world. Using financial data from 2016 to 2018 and comparing their 2019 financials to (competitor) may help us calculate the various sorts of ratios and build a fair and accurate predicted projection for Walmart over the next five years.
A modest dip in profitability did not deter WALMART INC. from maintaining 3.9 percent revenue growth in FY 2019. As of February 2019, the company's Board of Directors approved a 2 percent increase in dividends, which translates to a $0.53 increase per share. As a whole, we came to the conclusion that Walmart is a profitable firm that might enhance its liquidity and asset management practices. The Pro Forma Income Statement for the following five years was also created. In addition, we were able to identify specific growth rates and how to anticipate for the future. These years were included in the pro forma income statement. SGA and depreciation were used to calculate the growth rate of sales. We also had to figure out how many shares were outstanding. This led me to the conclusion that the shares should be valued a little bit more than they now are.
Table of Contents
Executive Summary	2
Introduction	6
Financial History	9
Liquidity	9
Asset Management	10
Market Value	12
Profitability	13
Financial Today	14
Liquidity (2019)	14
Asset Ratio (2019)	15
Market Ratio (2019)	16
Profitability Ratio (2019)	17
Financial Future	18
The Per Forma Income Statement	18
Liquidity	19
Asset Management	20
Market Value	20
Profitability	21
Conclusion	22
References	25
Introduction
	1962 saw the opening of the first Walmart store in a little Arkansas town called Rogers. Sam Walton was the man who dreamed of controlling such a large business. To identify the greatest cheap retail techniques, Sam Walton scoured the industry. Then, he invested all of his money into his retail strategy. According to Sam, it was vital to build businesses in tiny towns with fewer people. For example, "now ninety-percent of all Walmart stores are within 15-minute walking distance from people's houses".
	Walmart has grown from one shop to six within seven years. Walmart was listed on the New York Stock Exchange in 1969, with a share price of $47. The use of technology aided in the transmission of information between stores as well as the reduction of miscalculation losses. Walmart was a step ahead of the competition because it was using technology to link its shops and warehouses. By 1974, Sam Walton had opened 18 Walmart shops. Walmart's low prices were one of its greatest assets. This period saw the addition of new services. They also opened up a pharmacy and a car repair shop.
	Around 1985, Sam Walton was determined to expand the "Made in America" movement throughout the United States. Things like "Made in the USA" or "Buy American Made" are still there today. In 1988, Walmart had opened its first supercenter and had almost 2,000 stores around the country at the same time. Walmart had spread to other countries in the years to come. Mexico, Hong Kong, Canada, Argentina, Chile, the United Kingdom, and Brazil were some of the countries that participated in the study abroad. Sam Walton, the creator of Walmart, died in 1972 at the age of 74. George H.W. Bush presented him with the Medal of Freedom before he died. For the first time in 1983, Sam's Club opened its doors to compete with Costco, which was founded in 1976.
	As of 1995, Walmart has finally opened a store in Vermont, making it the 50th state to have a Walmart. Wal-Mart grew so rapidly that it reached the milestone of selling $100 billion worth of goods by 1997. Walmart had 1,995 shops, 239 Supercenters, 433 Sam's Clubs, and 276 foreign locations at this point, employing around 675,000 people. In the year 2002, Walmart has its best sales day in the company's history. The day after Thanksgiving, which had brought in $1.43 billion in revenue. In the United States, it is known as Black Friday, and is a major shopping day. Walmart also topped the Fortune 500 list of America's biggest corporations in 2002.
In 2005, Walmart became a major player in disaster relief efforts. Hurricane Katrina victims received $18 million and 2,450 trucks of goods from Wal-Mart. Aside from zero waste, Walmart declared that it will exclusively purchase sustainable energy and offer items that benefit both people and the environment, according to the company. Walmart debuted the site to store service in 2007, allowing customers to purchase items online and pick them up in a local Walmart. For the first time ever, Walmart pledged $2 billion to help eradicate hunger in the United States in 2010. In India and South Africa, Walmart continues to grow. The retailer also hoped that its worldwide commitment to agriculture would benefit local farmers and local economies, all the while ensuring that its consumers had access to inexpensive, high-quality food. In 2012, we celebrated our 50th anniversary.
Walmart plans to recruit any honorably discharged veteran during the first year after leaving active duty in the next year. Wal-Mart had planned on recruiting more than 100,000 veterans in the following five years. At the end of 2015, Walmart had more than 2.3 million employees working across the world, with 200 million consumers shopping there each week. Because it operates in 27 countries and has more than 11,000 locations, Walmart must be one of the world's largest corporations. In two years, they invested $2.7 billion to raise the minimum wage from $7.25 to $9.25. As a result of this investment, new training programs were created, and employees had greater choice over their schedule. It was a quick and easy option for consumers in 2016 to make purchases using their cellphones using Walmart Pay.
	Free two-day delivery was given by Walmart in 2017 on more than 2 million goods. For fundamental analysts, the price-to-earnings ratio (P/E) is the key financial measure they employ to assess a company's shares. Ratio relates a company's stock price to its EPS (EPS). According to industry, the average P/E ratio ranges from 15 to 20.
Walmart's P/E ratio is about 23.88 as of Q2 2020, implying that WMT shares trade in the market at approximately 24 times earnings per share. WMT's P/E ratio has been growing, and previous to 2017, Walmart's P/E ratio tended to hover slightly below 14x or 15x. Nonetheless, this price-to-earnings ratio is substantially lower than rival Costco's (COST) P/E ratio of 36.19. Target (TGT), the company's other major competitor, with a P/E ratio of about 18.77. This implies that Walmart is a possible value investment, although it has recently undergone significant price movement in relation to its profits, which may make some value investors uneasy. At the very least, based on earnings, the stock does not appear to be outrageously overpriced.
	With the change of Walmart's official name in 2018, a significant change occurred. Walmart Inc. replaced Wal-Mart Stores, Inc. as the company's name. In addition, the hourly pay was raised from $9 to $11, and maternity and parental leave benefits were enlarged. The monetary bonus provided to qualified employees as a once-a-year event was a tremendous incentive. Walmart has evolved significantly throughout the years, but one constant has been Sam Walton's visionary leadership, "together with generations of colleagues dedicated to helping customers and communities save money and live better."
	Walmart Inc. (WMT) stock is suitable for many investors looking for principal preservation as well as current income through dividends. Walmart stock may also be ideal for value investors, or investors who choose companies with cheap share prices relative to the company's profits and book value, based on a financial performance study. Walmart has always been seen as a bargain investment; nevertheless, its fundamentals may be changing, making it less appealing to conservative value investors.
	Analysis of particular ratios from financial statements and comparison of those ratios to industry benchmarks and other firms is required to determine if an investment is suitable for your aims. It is possible to determine a company's direction, likelihood of being solvent and if its stock is overpriced, undervalued, or valued just right by examining financial statistics. The following are the five most significant financial ratios when analyzing Walmart.
Financial History
Liquidity
	Liquidity
	2018
	2017
	2016
	Current ratio
	0.76
	0.86
	0.93
	Quick ratio
	0.20
	0.22
	0.24
	Total debt/total asset
	0.57
	0.60
	0.68
	The availability of liquid assets to a market or firm is described as liquidity. There are three ratios that may be used to assess a company's liquidity to further enhance liquidity. The current ratio, quick ratio, and total debt to total assets ratio are the three ratios that together give information on a company's liquidity. Each one sheds light on a company's financial risk and capacity to meet its obligations. The current ratio, for example, assesses a company's capacity to meet both short- and long-term obligations (Tikhonova, 2021).
	When looking at the history of this ratio for Walmart, the present ratio has dropped.

Part 1: Comprehensive Financial Analysis In this part of your research paper, you will dig deep into the financial statements of Walmart. You will analyze the company’s past financial performance to...

Answer To: Part 1: Comprehensive Financial Analysis In this part of your research paper, you will dig deep into...

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