Walmart 's Financial Information Dealing Essay

Walmart 's Financial Information Dealing Essay

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Walmart is currently the largest retail store in the world. It holds three segments and international businesses around the world. One of the ways it has managed to stay on top of the competition is by having four times more sales than any of its competitors. In this report, I will be analyzing and reflecting on Walmart’s financial information dealing with its statement of cash flows for the fiscal year ending in January 31, 2016 from the SEC 10-K filing.
How does Walmart generate so much revenue? Per the SEC 10-K filing in January 31 of 2016, most of Walmart’s total revenue were from net sales and a small portion was from membership fees and other income. The currency exchange rate and the lower prices for fuel at the SAM’s Club segments impacted the net sales in Walmart by $17.1 billion. The operating expenses for fiscal 2015 increased due to wage expenses and more hours given to the associates in order to improve the overall customer service.
Walmart’s’ gross profit increased in fiscal year 2015, due to the improvements in the margin in food, consumables, its pharmaceutical reimbursement program, and general merchandise. Even though Walmart was charged over $700 million in the closure of 150 stores and the fact that it accrues numerous operating expenses, (Walmart’s digital retail and information technology), Walmart is still on top as the most profitable competitive retail store.
The fact that Walmart has all these revenues and expenses notated in the financial statement, there is one statement that will show how the cash is flowing in and out of the business. The statement of cash flows will show if the company has cash not depending on account receivables or bank financing to show that the company is profitable.
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...rt opened 423 new stores and clubs in fiscal year 2016. The company received $635 million for the disposal of property and equipment. This could have come from some of the stores that Walmart closed and equipment that were in the stores in fiscal year 2016. The net cash expenditure in the investing activities were $450 million lower than last fiscal year 2015, which was $1.4 billion. The disposal of certain operation earned the company $246 million. The las transaction is other investing activities that Walmart invested $79 million that could have been used for small equipment such as cash register, trucks, computer systems and much more.
Finally, the last part in the cash flow statement is the financing activities which will reflect the interest paid in debts, dividends paid to investors, pay down debt, and other finance related activities that Walmart used cash.

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