Wal-Mart Business Analysis Part 2
Dr. Kenneth Edick

Wal-Mart Business Analysis Part 2 This paper compares Wal-Mart’s financial health to its competitors such as Target and K-Mart, which are also designed in retail multi-shopping department stores. Further review will detail how Wal-Mart’s rates in comparison of profitability through its income statement, balance sheet, and cash flow in relationship to Target and K-Mart. Upon examination, this information will illustrate the future perspective success of Wal-Mart and determine areas of improvement such as sales, operating income, return on investments, liabilities, and cash flow. Further information will identify the processes that Wal-Mart has designated to comply with the Security Exchange Commission (SEC) regulations. Detailed evaluations will specify Wal-Mart’s financial performance and the principal tools of benchmarking analyses that differentiates Wal-Mart’s position in best practices, operational processes and procedures in the domestic and global markets as well as the technology advantages in relationship to Target and K-Mart (University of Phoenix, 2011).
Financial Statements Wal-Mart implemented a new financial system, which reflects the retail method of accounting for inventory. This procedure affects the operating income and the consolidated net income for all comparable periods. Wal-Mart reclassified expense and revenue items within these statements of income for the purpose of reporting. However, the reclassifications did not affect consolidated operating income or net income to Wal-Mart (Wal-Mart 2011 Annual Report, 2011).
Cash Flow Wal-Mart generated a positive cash flow of $10.9 billion, $14.1 billion and $11.6 billion for January 31, 2011, 2010, 2009 respectively. The decline in fiscal 2011 was because of an investment increase in inventory and accounts payable. Nevertheless, an