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Chapter 3: Evaluating Financial Performance Kmart vs. Wal-Mart
Chapter 3: Evaluating Financial PerformanceKmart vs. Wal-Mart
ObjectivesCalculate financial ratios to evaluate the financial health of a company.Apply DuPont analysis in evaluating a firms financial performance.Explain the limitations of ratio analysis.
Relevant PrinciplesPrinciple 7: Agency relationships, managers wont work for the owners unless its in their best interest to do so.Principle 5: Competitive markets make it hard to find exceptionally profitable investments.Principle 1: The risk-return trade-off we wont take more risk unless we expect higher returns.
How to use Financial Ratios?Compare across time for an individual firm. Trend Analysis.Compare to an industry average. Industry Analysis.Compare to a dominant competitor in the same industry. Comparison Analysis.We will conduct trend analysis for both Kmart & Wal-Mart and compare the ratios of the two companies.
4 Key Questions to Answer with Ratio AnalysisHow liquid is the firm?Is management generating adequate operating profits on the firms assets?How is the firm financing its assets?Are the stockholders receiving an adequate return on their investment?
How liquid is the firm?Measuring Liquidity Approach 1: comparing liquid assets to short-term debt.
Current Ratio = Current Assets/Current LiabilitiesAcid-test Ratio = (Current Assets Inventory)/Current Liabilities
How liquid is the firm?Measuring Liquidity Approach 2: How easily can other current assets be converted into cash.Average Collection Period = Accounts Receivable/Daily (Credit) SalesAccounts Receivable/(Sales/365)Accounts Receivable Turnover = (Credit) Sales/Accounts ReceivableInventory Turnover = Cost of Goods Sold/Inventory
Kmart and Wal-Marts Liquidity Ratios
Kmart
US Business Browser
Kmart Corp. - Summary
Kmart Corp.
www.kmart.com/ (Stock Quote* or Chart*)
3100 West Big Beaver Road
Troy, MI48084
Oakland County
United States
Financials in Millions of ReportedPrimary SIC: 5331 - Variety stores
Industry: Retail (Specialty Non-Apparel)
Annual Sales: 37,028.0
Annual Assets: 14,630.0
Market Guide's Business Description:
Kmart Corporation is a discount retailer and general merchandise retailer. The Company operates in the general merchandise retailing industry through 2,105 Kmart discount stores, with locations in each of the 50 United States, Puerto Rico, the United Stat
OneSource Business Description:
Provider of name-brand and private-label retail services. Parent/holding company with a high-tech operating unit which provides online retail services. Products are sold to consumers.
Kmart Corp.
Annual Income Statement
31-Jan-0126-Jan-0027-Jan-9928-Jan-9829-Jan-97
Sales--Core Business37,028.0035,925.0033,674.0032,183.0031,437.00
Total Sales37,028.0035,925.0033,674.0032,183.0031,437.00
Cost of Goods Sold29,658.0028,111.0026,319.0025,152.0024,390.00
SG&A Expense7,415.006,514.006,245.006,136.006,274.00
Other Operating Expense0000-10
Unusual Inc/Exp00191140
Total Expenses37,073.0034,625.0032,583.0031,402.0030,654.00
Interest Net, Non-Oper-287-280-293-363-453
Other--Net00000
Pre-Tax Income-3321,020.00798418330
Income Taxes-13433723012068
Income After Taxes-198683568298262
Preferred Dividends-36-50-50-49-31
Interest Adj for Primary EPS00000
Net Income before EI & DO-198683568298262
Discontinued Operations0-23000-451
Extraordinary Items00000
Accounting Change00000
Net Income after EI & DO-198453568298-189
Preferred Dividends-36-50-50-49-31
Income Av to Comm Shareholders Incl E&D-234403518249-220
Income Av to Comm Shareholders Excl E&D-234633518249231
Primary EPS Excluding E&D-0.491.291.050.510.48
Primary EPS Including E&D-0.490.821.050.51-0.46
Dividends Per Common Share00000
Shares to Calculate Primary EPS (millions of shares)482.8491.7492.1487.1483.6
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Kmart Corp.
Annual Balance Sheet
31-Jan-0126-Jan-0027-Jan-9928-Jan-9829-Jan-97
Assets
Cash & Equivalents401344710498406
Accounts Receivable00000
Inventory6,412.007,101.006,536.006,367.006,354.00
Other Current Assets811715584611973
Total Current Assets7,624.008,160.007,830.007,476.007,733.00
Long-Term Investments00000
Property Plant & Equipment11,942.0011,554.0010,778.0010,131.0010,768.00
Accum Depr. & Amort.-5,385.00-5,144.00-4,864.00-4,659.00-5,028.00
Property Plant & Equipment, Net6,557.006,410.005,914.005,472.005,740.00
Other Long-Term Assets449534422610813
Total Assets14,630.0015,104.0014,166.0013,558.0014,286.00
Liabilities
Accounts Payable2,288.002,204.002,047.001,923.002,009.00
Short-Term Debt00000
Curr. LT Debt and CLOs68667778156
Other Current Liabilities1,443.001,806.001,567.001,273.001,437.00
Total Current Liabilities3,799.004,076.003,691.003,274.003,602.00
Long-Term Debt2,084.001,759.001,538.001,725.002,121.00
Capitalized Lease Obligations9431,014.001,091.001,179.001,478.00
Total Long-Term Debt3,027.002,773.002,629.002,904.003,599.00
Deferred Taxes00000
Other Long-Term Liabilities1,721.001,951.001,867.009651,013.00
Total Liabilities8,547.008,800.008,187.007,143.008,214.00
Stockholders' Equity
Preferred Stock000981980
Common Stock487481493489486
Additional Paid in Capital1,578.001,555.001,667.001,620.001,608.00
Retained Earnings4,018.004,268.003,819.003,343.003,105.00
Treasury Stock000-15-37
Other Equity000-3-70
Total Shareholders' Equity6,083.006,304.005,979.006,415.006,072.00
Total Liabilities + Shareholders' Equity14,630.0015,104.0014,166.0013,558.0014,286.00
Shares Outstanding486.5481.4493.4488.2484.7
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Question 1:How liquid is the firm?20012000199919981997
Liquidity Approach 1:
Current Ratio2.012.002.122.282.15
Acid-test Ratio0.320.260.350.340.38
Liquidity Approach 2:
Average Collection Period00000
Accounts Receivable Turnover00000
Inventory Turnover4.633.964.033.953.84
Question 2: is the firm generating an adequate return on it's investments?20012000199919981997
OROI Comp. 1:Operating Profit Margin-0.12%3.62%3.24%2.43%2.49%
OROI Comp. 2:Total Asset Turnover2.532.382.382.372.20
Operating Return on Investment (OROI)-0.31%8.61%7.70%5.76%5.48%
Accounts Receivable Turnover00000
Inventory Turnover4.633.964.033.953.84
Fixed Asset Turnover5.655.605.695.885.48
Question 3: How is the firm financing its assets?20012000199919981997
Debt Ratio58.42%58.26%57.79%52.68%57.50%
Times-Interest Earned Ratio (TIE)-0.164.643.722.151.73
Question 4: Is the firm generating an adequate return for its stockholders?20012000199919981997
Return on Equity (ROE)-3.85%6.39%8.66%4.58%-4.32%
DuPont Equation:
ROE Components:20012000199919981997
Net Profit Margin-0.63%1.12%1.54%0.77%-0.70%
Total Asset Turnover2.532.382.382.372.20
= Return on Assets (ROA)-1.60%2.67%3.66%1.84%-1.54%
divided by (1 - Debt Ratio)41.58%41.74%42.21%47.32%42.50%
= Return on Equity-3.85%6.39%8.66%3.88%-3.62%
US Business Browser
www.kmart.com/
Annual Sales: 37,028.0
Annual Assets: 14,630.0
Primary SIC: 5331 - Variety stores
Industry: Retail (Specialty Non-Apparel)
Glossary of Financial Variables
Glossary of Financial Variables
Sheet1
Question 1: How Liquid is the Firm?
Kmart
Approach 1:20012000199919981997
Current Ratio2.012.002.122.282.15
Acid-test (Quick) Ratio0.320.260.350.340.38
Approach 2:
Average Collection Period00000
Accounts Receivable Turnover
Inventory Turnover4.633.964.033.953.84
Question 1: How Liquid is the Firm?
Wal-Mart
Approach 1:20012000199919981997
Current Ratio0.920.941.261.341.64
Acid-test (Quick) Ratio0.180.180.240.200.19
Approach 2:
Average Collection Period3.342.932.932.992.90
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Question 2: Is Management Generating Adequate Operating Profits on the Firm's Assets?
Kmart
20012000199919981997
OIROI Component 1: Oper Profit Margin-0.1%3.6%3.2%2.4%2.5%
OIROI Component 2 : Total Asset Turnover2.532.382.382.372.20
Oper. Income Return On Investmt (OIROI)-0.3%8.6%7.7%5.8%5.5%
Accounts Receivable Turnover
Inventory Turnover4.633.964.033.953.84
Fixed Asset Turvover5.655.605.695.885.48
Question 2: Is Management Generating Adequate Operating Profits on the Firm's Assets?
Wal-Mart
20012000199919981997
OIROI Component 1: Oper Profit Margin5.9%6.1%5.8%5.5%5.4%
OIROI Component 2 : Total Asset Turnover2.4742.3712.7842.6292.681
Oper. Income Return On Investmt (OIROI)14.7%14.4%16.2%14.3%14.4%
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Fixed Asset Turvover4.724.645.365.055.22
Question 3: How is the Firm Financing Its Assets?
Kmart
20012000199919981997
Debt Ratio58.4%58.3%57.8%52.7%57.5%
Times-Interest-Earned Ratio-0.164.643.722.151.73
Question 3: How is the Firm Financing Its Assets?
Wal-Mart
20012000199919981997
Debt Ratio59.9%63.3%57.8%59.2%56.7%
Times-Interest-Earned Ratio8.369.8910.198.296.77
Question 4: Are the Owners Receiving an Adequate Return on Their Investment?
Kmart
20012000199919981997
Return on Common Equity-3.8%6.4%8.7%4.6%-4.3%
Question 4: Are the Owners Receiving an Adequate Return on Their Investment?
Wal-Mart
20012000199919981997
Return on Common Equity20.1%20.8%21.0%19.1%17.8%
Kmart
ROE Components:20012000199919981997
Net Profit Margin-0.6%1.1%1.5%0.8%-0.7%
Total Asset Turnover2.532.382.382.372.20
Return on Assets-1.6%2.7%3.7%1.8%-1.5%
1 - Debt Ratio0.420.420.420.470.43
Return On Equity-3.8%6.4%8.7%3.9%-3.6%
Wal-Mart
ROE Components:20012000199919981997
Net Profit Margin3.3%3.2%3.2%3.0%2.9%
Total Asset Turnover2.472.372.782.632.68
Return on Assets8.1%7.6%8.9%7.8%7.7%
1 - Debt Ratio0.400.370.420.410.43
Return On Equity20.1%20.8%21.0%19.1%17.8%
Wal-Mart
US Business Browser
Wal-Mart Stores, Inc. - Summary
Wal-Mart Stores, Inc.
www.walmart.com/ (Stock Quote* or Chart*)
702 Southwest 8th Street
Bentonville, AR72716
Benton County
United States
Financials in Millions of ReportedPrimary SIC: 5311 - Department stores
Industry: Retail (Department & Discount)
Annual Sales: 193,295.0
Annual Assets: 78,130.0
Market Guide's Business Description:
Wal-Mart Stores Inc. is principally engaged in the operation of mass merchandising stores. At January 31, 2001, the Company operated 1,736 discount stores, 888 Supercenters, 475 SAM'S Clubs and 19 Neighborhood Markets. Internationally, at January 31, 2001
OneSource Business Description:
Provider of an online site that sells retail home goods, clothing, electronics and other consumer goods. Parent/holding company with operating units involved in bulk grocery and home goods sales, logistics and warehousing services. Products and services a
Wal-Mart Stores, Inc.
Annual Income Statement
31-Jan-0131-Jan-0031-Jan-9931-Jan-9831-Jan-97
Sales--Core Business191,329.00165,013.00137,634.00117,958.00104,859.00
Sales--Other1,966.001,796.001,574.001,341.001,319.00
Total Sales193,295.00166,809.00139,208.00119,299.00106,178.00
Cost of Goods Sold150,255.00129,664.00108,725.0093,438.0083,510.00
SG&A Expense31,550.0027,040.0022,363.0019,358.0016,946.00
Interest Expense1,374.001,022.00797784845
Total Expenses183,179.00157,726.00131,885.00113,580.00101,301.00
Pre-Tax Income10,116.009,083.007,323.005,719.004,877.00
Income Taxes3,692.003,338.002,740.002,115.001,794.00
Income After Taxes6,424.005,745.004,583.003,604.003,083.00
Minority Interests-129-170-153-78-27
Net Income before EI & DO6,295.005,575.004,430.003,526.003,056.00
Accounting Change0-198000
Net Income after EI & DO6,295.005,377.004,430.003,526.003,056.00
Income Av to Comm Shareholders Incl E&D6,295.005,377.004,430.003,526.003,056.00
Income Av to Comm Shareholders Excl E&D6,295.005,575.004,430.003,526.003,056.00
Primary EPS Excluding E&D1.411.250.990.780.67
Primary EPS Including E&D1.411.210.990.780.67
Dividends Per Common Share0.240.20.160.140.11
Shares to Calculate Primary EPS (millions of shares)4,465.004,451.004,464.004,516.004,585.00
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Wal-Mart Stores, Inc.
Annual Balance Sheet
31-Jan-0131-Jan-0031-Jan-9931-Jan-9831-Jan-97
Assets
Cash & Equivalents2,054.001,856.001,879.001,447.00883
Accounts Receivable1,768.001,341.001,118.00976845
Inventory21,442.0019,793.0017,076.0016,497.0015,897.00
Prepayments & Advances1,291.001,366.001,059.00432368
Other Current Assets00000
Total Current Assets26,555.0024,356.0021,132.0019,352.0017,993.00
Property Plant & Equipment52,433.0045,348.0034,464.0027,376.0023,182.00
Accum Depr. & Amort.-11,499.00-9,379.00-8,491.00-5,907.00-4,849.00
Property Plant & Equipment, Other0002,137.001,991.00
Property Plant & Equipment, Net40,934.0035,969.0025,973.0023,606.0020,324.00
Goodwill/Intangibles9,059.009,392.002,538.0000
Other Long-Term Assets1,582.006323532,426.001,287.00
Total Assets78,130.0070,349.0049,996.0045,384.0039,604.00
Liabilities
Accounts Payable15,092.0013,105.0010,257.009,126.007,628.00
Short-Term Debt2,286.003,323.00000
Curr. LT Debt and CLOs4,375.002,085.001,006.001,141.00618
Other Current Liabilities7,196.007,290.005,499.004,193.002,711.00
Total Current Liabilities28,949.0025,803.0016,762.0014,460.0010,957.00
Long-Term Debt12,501.0013,672.006,908.007,191.007,709.00
Capitalized Lease Obligations3,154.003,002.002,699.002,483.002,307.00
Total Long-Term Debt15,655.0016,674.009,607.009,674.0010,016.00
Minority Interest1,140.001,279.001,799.001,938.001,025.00
Deferred Taxes1,043.00759716809463
Total Liabilities46,787.0044,515.0028,884.0026,881.0022,461.00
Stockholders' Equity
Common Stock447446445224228
Additional Paid in Capital1,411.00714435585547
Retained Earnings30,169.0025,129.0020,741.0018,167.0016,768.00
Other Equity-684-455-509-473-400
Total Shareholders' Equity31,343.0025,834.0021,112.0018,503.0017,143.00
Total Liabilities + Shareholders' Equity78,130.0070,349.0049,996.0045,384.0039,604.00
Shares Outstanding4,470.004,457.004,448.004,482.004,570.00
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Question 1:How liquid is the firm?20012000199919981997
Liquidity Approach 1:
Current Ratio0.920.941.261.341.64
Acid-test Ratio0.180.180.240.200.19
Liquidity Approach 2:
Average Collection Period3.342.932.932.992.90
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Question 2: is the firm generating an adequate return on it's investments?20012000199919981997
OROI Comp. 1:Operating Profit Margin5.94%6.06%5.83%5.45%5.39%
OROI Comp. 2:Total Asset Turnover2.472.372.782.632.68
Operating Return on Investment (OROI)14.71%14.36%16.24%14.33%14.45%
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Fixed Asset Turnover4.724.645.365.055.22
Question 3: How is the firm financing its assets?20012000199919981997
Debt Ratio59.88%63.28%57.77%59.23%56.71%
Times-Interest Earned Ratio (TIE)8.369.8910.198.296.77
Question 4: Is the firm generating an adequate return for its stockholders?20012000199919981997
Return on Equity (ROE)20.08%20.81%20.98%19.06%17.83%
DuPont Equation:
ROE Components:20012000199919981997
Net Profit Margin3.26%3.22%3.18%2.96%2.88%
Total Asset Turnover2.472.372.782.632.68
= Return on Assets (ROA)8.06%7.64%8.86%7.77%7.72%
divided by (1 - Debt Ratio)40.12%36.72%42.23%40.77%43.29%
= Return on Equity20.08%20.81%20.98%19.06%17.83%
US Business Browser
www.walmart.com/
Annual Sales: 193,295.0
Annual Assets: 78,130.0
Primary SIC: 5311 - Department stores
Industry: Retail (Department & Discount)
Glossary of Financial Variables
Glossary of Financial Variables
Is management generating adequate operating profits on the firms assets?Operating Return on Investment (OIROI)Operating Income/Total Assets, also:Operating Profit Margin x Total Asset TurnoverOperating Profit Margin = Operating Income/SalesOperating Income = Pre-Tax Income plus interest expense, or Pre-tax income minus interest, non-opTotal Asset Turnover = Sales/Total AssetsAffected by Accounts Receivable Turnover, Inventory Turnover, Fixed Asset TurnoverFixed Asset Turnover = Sales/Net Fixed Assets; Net Fixed Assets = Property, Plant, Equip, NET
Kmart & Wal-Marts Operating Profitability Ratios
Kmart
US Business Browser
Kmart Corp. - Summary
Kmart Corp.
www.kmart.com/ (Stock Quote* or Chart*)
3100 West Big Beaver Road
Troy, MI48084
Oakland County
United States
Financials in Millions of ReportedPrimary SIC: 5331 - Variety stores
Industry: Retail (Specialty Non-Apparel)
Annual Sales: 37,028.0
Annual Assets: 14,630.0
Market Guide's Business Description:
Kmart Corporation is a discount retailer and general merchandise retailer. The Company operates in the general merchandise retailing industry through 2,105 Kmart discount stores, with locations in each of the 50 United States, Puerto Rico, the United Stat
OneSource Business Description:
Provider of name-brand and private-label retail services. Parent/holding company with a high-tech operating unit which provides online retail services. Products are sold to consumers.
Kmart Corp.
Annual Income Statement
31-Jan-0126-Jan-0027-Jan-9928-Jan-9829-Jan-97
Sales--Core Business37,028.0035,925.0033,674.0032,183.0031,437.00
Total Sales37,028.0035,925.0033,674.0032,183.0031,437.00
Cost of Goods Sold29,658.0028,111.0026,319.0025,152.0024,390.00
SG&A Expense7,415.006,514.006,245.006,136.006,274.00
Other Operating Expense0000-10
Unusual Inc/Exp00191140
Total Expenses37,073.0034,625.0032,583.0031,402.0030,654.00
Interest Net, Non-Oper-287-280-293-363-453
Other--Net00000
Pre-Tax Income-3321,020.00798418330
Income Taxes-13433723012068
Income After Taxes-198683568298262
Preferred Dividends-36-50-50-49-31
Interest Adj for Primary EPS00000
Net Income before EI & DO-198683568298262
Discontinued Operations0-23000-451
Extraordinary Items00000
Accounting Change00000
Net Income after EI & DO-198453568298-189
Preferred Dividends-36-50-50-49-31
Income Av to Comm Shareholders Incl E&D-234403518249-220
Income Av to Comm Shareholders Excl E&D-234633518249231
Primary EPS Excluding E&D-0.491.291.050.510.48
Primary EPS Including E&D-0.490.821.050.51-0.46
Dividends Per Common Share00000
Shares to Calculate Primary EPS (millions of shares)482.8491.7492.1487.1483.6
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Kmart Corp.
Annual Balance Sheet
31-Jan-0126-Jan-0027-Jan-9928-Jan-9829-Jan-97
Assets
Cash & Equivalents401344710498406
Accounts Receivable00000
Inventory6,412.007,101.006,536.006,367.006,354.00
Other Current Assets811715584611973
Total Current Assets7,624.008,160.007,830.007,476.007,733.00
Long-Term Investments00000
Property Plant & Equipment11,942.0011,554.0010,778.0010,131.0010,768.00
Accum Depr. & Amort.-5,385.00-5,144.00-4,864.00-4,659.00-5,028.00
Property Plant & Equipment, Net6,557.006,410.005,914.005,472.005,740.00
Other Long-Term Assets449534422610813
Total Assets14,630.0015,104.0014,166.0013,558.0014,286.00
Liabilities
Accounts Payable2,288.002,204.002,047.001,923.002,009.00
Short-Term Debt00000
Curr. LT Debt and CLOs68667778156
Other Current Liabilities1,443.001,806.001,567.001,273.001,437.00
Total Current Liabilities3,799.004,076.003,691.003,274.003,602.00
Long-Term Debt2,084.001,759.001,538.001,725.002,121.00
Capitalized Lease Obligations9431,014.001,091.001,179.001,478.00
Total Long-Term Debt3,027.002,773.002,629.002,904.003,599.00
Deferred Taxes00000
Other Long-Term Liabilities1,721.001,951.001,867.009651,013.00
Total Liabilities8,547.008,800.008,187.007,143.008,214.00
Stockholders' Equity
Preferred Stock000981980
Common Stock487481493489486
Additional Paid in Capital1,578.001,555.001,667.001,620.001,608.00
Retained Earnings4,018.004,268.003,819.003,343.003,105.00
Treasury Stock000-15-37
Other Equity000-3-70
Total Shareholders' Equity6,083.006,304.005,979.006,415.006,072.00
Total Liabilities + Shareholders' Equity14,630.0015,104.0014,166.0013,558.0014,286.00
Shares Outstanding486.5481.4493.4488.2484.7
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Question 1:How liquid is the firm?20012000199919981997
Liquidity Approach 1:
Current Ratio2.012.002.122.282.15
Acid-test Ratio0.320.260.350.340.38
Liquidity Approach 2:
Average Collection Period00000
Accounts Receivable Turnover00000
Inventory Turnover4.633.964.033.953.84
Question 2: is the firm generating an adequate return on it's investments?20012000199919981997
OROI Comp. 1:Operating Profit Margin-0.12%3.62%3.24%2.43%2.49%
OROI Comp. 2:Total Asset Turnover2.532.382.382.372.20
Operating Return on Investment (OROI)-0.31%8.61%7.70%5.76%5.48%
Accounts Receivable Turnover00000
Inventory Turnover4.633.964.033.953.84
Fixed Asset Turnover5.655.605.695.885.48
Question 3: How is the firm financing its assets?20012000199919981997
Debt Ratio58.42%58.26%57.79%52.68%57.50%
Times-Interest Earned Ratio (TIE)-0.164.643.722.151.73
Question 4: Is the firm generating an adequate return for its stockholders?20012000199919981997
Return on Equity (ROE)-3.85%6.39%8.66%4.58%-4.32%
DuPont Equation:
ROE Components:20012000199919981997
Net Profit Margin-0.63%1.12%1.54%0.77%-0.70%
Total Asset Turnover2.532.382.382.372.20
= Return on Assets (ROA)-1.60%2.67%3.66%1.84%-1.54%
divided by (1 - Debt Ratio)41.58%41.74%42.21%47.32%42.50%
= Return on Equity-3.85%6.39%8.66%3.88%-3.62%
US Business Browser
www.kmart.com/
Annual Sales: 37,028.0
Annual Assets: 14,630.0
Primary SIC: 5331 - Variety stores
Industry: Retail (Specialty Non-Apparel)
Glossary of Financial Variables
Glossary of Financial Variables
Sheet1
Question 1: How Liquid is the Firm?
Kmart
Approach 1:20012000199919981997
Current Ratio2.012.002.122.282.15
Acid-test (Quick) Ratio0.320.260.350.340.38
Approach 2:
Average Collection Period00000
Accounts Receivable Turnover
Inventory Turnover4.633.964.033.953.84
Question 1: How Liquid is the Firm?
Wal-Mart
Approach 1:20012000199919981997
Current Ratio0.920.941.261.341.64
Acid-test (Quick) Ratio0.180.180.240.200.19
Approach 2:
Average Collection Period3.342.932.932.992.90
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Question 2: Is Management Generating Adequate Operating Profits on the Firm's Assets?
Kmart
20012000199919981997
OIROI Component 1: Oper Profit Margin-0.1%3.6%3.2%2.4%2.5%
OIROI Component 2 : Total Asset Turnover2.532.382.382.372.20
Oper. Income Return On Investmt (OIROI)-0.3%8.6%7.7%5.8%5.5%
Accounts Receivable Turnover
Inventory Turnover4.633.964.033.953.84
Fixed Asset Turvover5.655.605.695.885.48
Question 2: Is Management Generating Adequate Operating Profits on the Firm's Assets?
Wal-Mart
20012000199919981997
OIROI Component 1: Oper Profit Margin5.9%6.1%5.8%5.5%5.4%
OIROI Component 2 : Total Asset Turnover2.4742.3712.7842.6292.681
Oper. Income Return On Investmt (OIROI)14.7%14.4%16.2%14.3%14.4%
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Fixed Asset Turvover4.724.645.365.055.22
Question 3: How is the Firm Financing Its Assets?
Kmart
20012000199919981997
Debt Ratio58.4%58.3%57.8%52.7%57.5%
Times-Interest-Earned Ratio-0.164.643.722.151.73
Question 3: How is the Firm Financing Its Assets?
Wal-Mart
20012000199919981997
Debt Ratio59.9%63.3%57.8%59.2%56.7%
Times-Interest-Earned Ratio8.369.8910.198.296.77
Question 4: Are the Owners Receiving an Adequate Return on Their Investment?
Kmart
20012000199919981997
Return on Common Equity-3.8%6.4%8.7%4.6%-4.3%
Question 4: Are the Owners Receiving an Adequate Return on Their Investment?
Wal-Mart
20012000199919981997
Return on Common Equity20.1%20.8%21.0%19.1%17.8%
Kmart
ROE Components:20012000199919981997
Net Profit Margin-0.6%1.1%1.5%0.8%-0.7%
Total Asset Turnover2.532.382.382.372.20
Return on Assets-1.6%2.7%3.7%1.8%-1.5%
1 - Debt Ratio0.420.420.420.470.43
Return On Equity-3.8%6.4%8.7%3.9%-3.6%
Wal-Mart
ROE Components:20012000199919981997
Net Profit Margin3.3%3.2%3.2%3.0%2.9%
Total Asset Turnover2.472.372.782.632.68
Return on Assets8.1%7.6%8.9%7.8%7.7%
1 - Debt Ratio0.400.370.420.410.43
Return On Equity20.1%20.8%21.0%19.1%17.8%
Wal-Mart
US Business Browser
Wal-Mart Stores, Inc. - Summary
Wal-Mart Stores, Inc.
www.walmart.com/ (Stock Quote* or Chart*)
702 Southwest 8th Street
Bentonville, AR72716
Benton County
United States
Financials in Millions of ReportedPrimary SIC: 5311 - Department stores
Industry: Retail (Department & Discount)
Annual Sales: 193,295.0
Annual Assets: 78,130.0
Market Guide's Business Description:
Wal-Mart Stores Inc. is principally engaged in the operation of mass merchandising stores. At January 31, 2001, the Company operated 1,736 discount stores, 888 Supercenters, 475 SAM'S Clubs and 19 Neighborhood Markets. Internationally, at January 31, 2001
OneSource Business Description:
Provider of an online site that sells retail home goods, clothing, electronics and other consumer goods. Parent/holding company with operating units involved in bulk grocery and home goods sales, logistics and warehousing services. Products and services a
Wal-Mart Stores, Inc.
Annual Income Statement
31-Jan-0131-Jan-0031-Jan-9931-Jan-9831-Jan-97
Sales--Core Business191,329.00165,013.00137,634.00117,958.00104,859.00
Sales--Other1,966.001,796.001,574.001,341.001,319.00
Total Sales193,295.00166,809.00139,208.00119,299.00106,178.00
Cost of Goods Sold150,255.00129,664.00108,725.0093,438.0083,510.00
SG&A Expense31,550.0027,040.0022,363.0019,358.0016,946.00
Interest Expense1,374.001,022.00797784845
Total Expenses183,179.00157,726.00131,885.00113,580.00101,301.00
Pre-Tax Income10,116.009,083.007,323.005,719.004,877.00
Income Taxes3,692.003,338.002,740.002,115.001,794.00
Income After Taxes6,424.005,745.004,583.003,604.003,083.00
Minority Interests-129-170-153-78-27
Net Income before EI & DO6,295.005,575.004,430.003,526.003,056.00
Accounting Change0-198000
Net Income after EI & DO6,295.005,377.004,430.003,526.003,056.00
Income Av to Comm Shareholders Incl E&D6,295.005,377.004,430.003,526.003,056.00
Income Av to Comm Shareholders Excl E&D6,295.005,575.004,430.003,526.003,056.00
Primary EPS Excluding E&D1.411.250.990.780.67
Primary EPS Including E&D1.411.210.990.780.67
Dividends Per Common Share0.240.20.160.140.11
Shares to Calculate Primary EPS (millions of shares)4,465.004,451.004,464.004,516.004,585.00
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Wal-Mart Stores, Inc.
Annual Balance Sheet
31-Jan-0131-Jan-0031-Jan-9931-Jan-9831-Jan-97
Assets
Cash & Equivalents2,054.001,856.001,879.001,447.00883
Accounts Receivable1,768.001,341.001,118.00976845
Inventory21,442.0019,793.0017,076.0016,497.0015,897.00
Prepayments & Advances1,291.001,366.001,059.00432368
Other Current Assets00000
Total Current Assets26,555.0024,356.0021,132.0019,352.0017,993.00
Property Plant & Equipment52,433.0045,348.0034,464.0027,376.0023,182.00
Accum Depr. & Amort.-11,499.00-9,379.00-8,491.00-5,907.00-4,849.00
Property Plant & Equipment, Other0002,137.001,991.00
Property Plant & Equipment, Net40,934.0035,969.0025,973.0023,606.0020,324.00
Goodwill/Intangibles9,059.009,392.002,538.0000
Other Long-Term Assets1,582.006323532,426.001,287.00
Total Assets78,130.0070,349.0049,996.0045,384.0039,604.00
Liabilities
Accounts Payable15,092.0013,105.0010,257.009,126.007,628.00
Short-Term Debt2,286.003,323.00000
Curr. LT Debt and CLOs4,375.002,085.001,006.001,141.00618
Other Current Liabilities7,196.007,290.005,499.004,193.002,711.00
Total Current Liabilities28,949.0025,803.0016,762.0014,460.0010,957.00
Long-Term Debt12,501.0013,672.006,908.007,191.007,709.00
Capitalized Lease Obligations3,154.003,002.002,699.002,483.002,307.00
Total Long-Term Debt15,655.0016,674.009,607.009,674.0010,016.00
Minority Interest1,140.001,279.001,799.001,938.001,025.00
Deferred Taxes1,043.00759716809463
Total Liabilities46,787.0044,515.0028,884.0026,881.0022,461.00
Stockholders' Equity
Common Stock447446445224228
Additional Paid in Capital1,411.00714435585547
Retained Earnings30,169.0025,129.0020,741.0018,167.0016,768.00
Other Equity-684-455-509-473-400
Total Shareholders' Equity31,343.0025,834.0021,112.0018,503.0017,143.00
Total Liabilities + Shareholders' Equity78,130.0070,349.0049,996.0045,384.0039,604.00
Shares Outstanding4,470.004,457.004,448.004,482.004,570.00
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Question 1:How liquid is the firm?20012000199919981997
Liquidity Approach 1:
Current Ratio0.920.941.261.341.64
Acid-test Ratio0.180.180.240.200.19
Liquidity Approach 2:
Average Collection Period3.342.932.932.992.90
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Question 2: is the firm generating an adequate return on it's investments?20012000199919981997
OROI Comp. 1:Operating Profit Margin5.94%6.06%5.83%5.45%5.39%
OROI Comp. 2:Total Asset Turnover2.472.372.782.632.68
Operating Return on Investment (OROI)14.71%14.36%16.24%14.33%14.45%
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Fixed Asset Turnover4.724.645.365.055.22
Question 3: How is the firm financing its assets?20012000199919981997
Debt Ratio59.88%63.28%57.77%59.23%56.71%
Times-Interest Earned Ratio (TIE)8.369.8910.198.296.77
Question 4: Is the firm generating an adequate return for its stockholders?20012000199919981997
Return on Equity (ROE)20.08%20.81%20.98%19.06%17.83%
DuPont Equation:
ROE Components:20012000199919981997
Net Profit Margin3.26%3.22%3.18%2.96%2.88%
Total Asset Turnover2.472.372.782.632.68
= Return on Assets (ROA)8.06%7.64%8.86%7.77%7.72%
divided by (1 - Debt Ratio)40.12%36.72%42.23%40.77%43.29%
= Return on Equity20.08%20.81%20.98%19.06%17.83%
US Business Browser
www.walmart.com/
Annual Sales: 193,295.0
Annual Assets: 78,130.0
Primary SIC: 5311 - Department stores
Industry: Retail (Department & Discount)
Glossary of Financial Variables
Glossary of Financial Variables
How is the firm financing its assets?Debt Ratio = Total Liabilities/Total AssetsTimes-Interest-Earned = Operating Income/Interest ExpenseOperating Income = Pre-Tax Income plus interest expense, or Pre-tax income minus interest, non-op (int exp for Kmart)
Kmart & Wal-Marts Financing Ratios
Kmart
US Business Browser
Kmart Corp. - Summary
Kmart Corp.
www.kmart.com/ (Stock Quote* or Chart*)
3100 West Big Beaver Road
Troy, MI48084
Oakland County
United States
Financials in Millions of ReportedPrimary SIC: 5331 - Variety stores
Industry: Retail (Specialty Non-Apparel)
Annual Sales: 37,028.0
Annual Assets: 14,630.0
Market Guide's Business Description:
Kmart Corporation is a discount retailer and general merchandise retailer. The Company operates in the general merchandise retailing industry through 2,105 Kmart discount stores, with locations in each of the 50 United States, Puerto Rico, the United Stat
OneSource Business Description:
Provider of name-brand and private-label retail services. Parent/holding company with a high-tech operating unit which provides online retail services. Products are sold to consumers.
Kmart Corp.
Annual Income Statement
31-Jan-0126-Jan-0027-Jan-9928-Jan-9829-Jan-97
Sales--Core Business37,028.0035,925.0033,674.0032,183.0031,437.00
Total Sales37,028.0035,925.0033,674.0032,183.0031,437.00
Cost of Goods Sold29,658.0028,111.0026,319.0025,152.0024,390.00
SG&A Expense7,415.006,514.006,245.006,136.006,274.00
Other Operating Expense0000-10
Unusual Inc/Exp00191140
Total Expenses37,073.0034,625.0032,583.0031,402.0030,654.00
Interest Net, Non-Oper-287-280-293-363-453
Other--Net00000
Pre-Tax Income-3321,020.00798418330
Income Taxes-13433723012068
Income After Taxes-198683568298262
Preferred Dividends-36-50-50-49-31
Interest Adj for Primary EPS00000
Net Income before EI & DO-198683568298262
Discontinued Operations0-23000-451
Extraordinary Items00000
Accounting Change00000
Net Income after EI & DO-198453568298-189
Preferred Dividends-36-50-50-49-31
Income Av to Comm Shareholders Incl E&D-234403518249-220
Income Av to Comm Shareholders Excl E&D-234633518249231
Primary EPS Excluding E&D-0.491.291.050.510.48
Primary EPS Including E&D-0.490.821.050.51-0.46
Dividends Per Common Share00000
Shares to Calculate Primary EPS (millions of shares)482.8491.7492.1487.1483.6
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Kmart Corp.
Annual Balance Sheet
31-Jan-0126-Jan-0027-Jan-9928-Jan-9829-Jan-97
Assets
Cash & Equivalents401344710498406
Accounts Receivable00000
Inventory6,412.007,101.006,536.006,367.006,354.00
Other Current Assets811715584611973
Total Current Assets7,624.008,160.007,830.007,476.007,733.00
Long-Term Investments00000
Property Plant & Equipment11,942.0011,554.0010,778.0010,131.0010,768.00
Accum Depr. & Amort.-5,385.00-5,144.00-4,864.00-4,659.00-5,028.00
Property Plant & Equipment, Net6,557.006,410.005,914.005,472.005,740.00
Other Long-Term Assets449534422610813
Total Assets14,630.0015,104.0014,166.0013,558.0014,286.00
Liabilities
Accounts Payable2,288.002,204.002,047.001,923.002,009.00
Short-Term Debt00000
Curr. LT Debt and CLOs68667778156
Other Current Liabilities1,443.001,806.001,567.001,273.001,437.00
Total Current Liabilities3,799.004,076.003,691.003,274.003,602.00
Long-Term Debt2,084.001,759.001,538.001,725.002,121.00
Capitalized Lease Obligations9431,014.001,091.001,179.001,478.00
Total Long-Term Debt3,027.002,773.002,629.002,904.003,599.00
Deferred Taxes00000
Other Long-Term Liabilities1,721.001,951.001,867.009651,013.00
Total Liabilities8,547.008,800.008,187.007,143.008,214.00
Stockholders' Equity
Preferred Stock000981980
Common Stock487481493489486
Additional Paid in Capital1,578.001,555.001,667.001,620.001,608.00
Retained Earnings4,018.004,268.003,819.003,343.003,105.00
Treasury Stock000-15-37
Other Equity000-3-70
Total Shareholders' Equity6,083.006,304.005,979.006,415.006,072.00
Total Liabilities + Shareholders' Equity14,630.0015,104.0014,166.0013,558.0014,286.00
Shares Outstanding486.5481.4493.4488.2484.7
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Question 1:How liquid is the firm?20012000199919981997
Liquidity Approach 1:
Current Ratio2.012.002.122.282.15
Acid-test Ratio0.320.260.350.340.38
Liquidity Approach 2:
Average Collection Period00000
Accounts Receivable Turnover00000
Inventory Turnover4.633.964.033.953.84
Question 2: is the firm generating an adequate return on it's investments?20012000199919981997
OROI Comp. 1:Operating Profit Margin-0.12%3.62%3.24%2.43%2.49%
OROI Comp. 2:Total Asset Turnover2.532.382.382.372.20
Operating Return on Investment (OROI)-0.31%8.61%7.70%5.76%5.48%
Accounts Receivable Turnover00000
Inventory Turnover4.633.964.033.953.84
Fixed Asset Turnover5.655.605.695.885.48
Question 3: How is the firm financing its assets?20012000199919981997
Debt Ratio58.42%58.26%57.79%52.68%57.50%
Times-Interest Earned Ratio (TIE)-0.164.643.722.151.73
Question 4: Is the firm generating an adequate return for its stockholders?20012000199919981997
Return on Equity (ROE)-3.85%6.39%8.66%4.58%-4.32%
DuPont Equation:
ROE Components:20012000199919981997
Net Profit Margin-0.63%1.12%1.54%0.77%-0.70%
Total Asset Turnover2.532.382.382.372.20
= Return on Assets (ROA)-1.60%2.67%3.66%1.84%-1.54%
divided by (1 - Debt Ratio)41.58%41.74%42.21%47.32%42.50%
= Return on Equity-3.85%6.39%8.66%3.88%-3.62%
US Business Browser
www.kmart.com/
Annual Sales: 37,028.0
Annual Assets: 14,630.0
Primary SIC: 5331 - Variety stores
Industry: Retail (Specialty Non-Apparel)
Glossary of Financial Variables
Glossary of Financial Variables
Sheet1
Question 1: How Liquid is the Firm?
Kmart
Approach 1:20012000199919981997
Current Ratio2.012.002.122.282.15
Acid-test (Quick) Ratio0.320.260.350.340.38
Approach 2:
Average Collection Period00000
Accounts Receivable Turnover
Inventory Turnover4.633.964.033.953.84
Question 1: How Liquid is the Firm?
Wal-Mart
Approach 1:20012000199919981997
Current Ratio0.920.941.261.341.64
Acid-test (Quick) Ratio0.180.180.240.200.19
Approach 2:
Average Collection Period3.342.932.932.992.90
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Question 2: Is Management Generating Adequate Operating Profits on the Firm's Assets?
Kmart
20012000199919981997
OIROI Component 1: Oper Profit Margin-0.1%3.6%3.2%2.4%2.5%
OIROI Component 2 : Total Asset Turnover2.532.382.382.372.20
Oper. Income Return On Investmt (OIROI)-0.3%8.6%7.7%5.8%5.5%
Accounts Receivable Turnover
Inventory Turnover4.633.964.033.953.84
Fixed Asset Turvover5.655.605.695.885.48
Question 2: Is Management Generating Adequate Operating Profits on the Firm's Assets?
Wal-Mart
20012000199919981997
OIROI Component 1: Oper Profit Margin5.9%6.1%5.8%5.5%5.4%
OIROI Component 2 : Total Asset Turnover2.4742.3712.7842.6292.681
Oper. Income Return On Investmt (OIROI)14.7%14.4%16.2%14.3%14.4%
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Fixed Asset Turvover4.724.645.365.055.22
Question 3: How is the Firm Financing Its Assets?
Kmart
20012000199919981997
Debt Ratio58.4%58.3%57.8%52.7%57.5%
Times-Interest-Earned Ratio-0.164.643.722.151.73
Question 3: How is the Firm Financing Its Assets?
Wal-Mart
20012000199919981997
Debt Ratio59.9%63.3%57.8%59.2%56.7%
Times-Interest-Earned Ratio8.369.8910.198.296.77
Question 4: Are the Owners Receiving an Adequate Return on Their Investment?
Kmart
20012000199919981997
Return on Common Equity-3.8%6.4%8.7%4.6%-4.3%
Question 4: Are the Owners Receiving an Adequate Return on Their Investment?
Wal-Mart
20012000199919981997
Return on Common Equity20.1%20.8%21.0%19.1%17.8%
Kmart
ROE Components:20012000199919981997
Net Profit Margin-0.6%1.1%1.5%0.8%-0.7%
Total Asset Turnover2.532.382.382.372.20
Return on Assets-1.6%2.7%3.7%1.8%-1.5%
1 - Debt Ratio0.420.420.420.470.43
Return On Equity-3.8%6.4%8.7%3.9%-3.6%
Wal-Mart
ROE Components:20012000199919981997
Net Profit Margin3.3%3.2%3.2%3.0%2.9%
Total Asset Turnover2.472.372.782.632.68
Return on Assets8.1%7.6%8.9%7.8%7.7%
1 - Debt Ratio0.400.370.420.410.43
Return On Equity20.1%20.8%21.0%19.1%17.8%
Wal-Mart
US Business Browser
Wal-Mart Stores, Inc. - Summary
Wal-Mart Stores, Inc.
www.walmart.com/ (Stock Quote* or Chart*)
702 Southwest 8th Street
Bentonville, AR72716
Benton County
United States
Financials in Millions of ReportedPrimary SIC: 5311 - Department stores
Industry: Retail (Department & Discount)
Annual Sales: 193,295.0
Annual Assets: 78,130.0
Market Guide's Business Description:
Wal-Mart Stores Inc. is principally engaged in the operation of mass merchandising stores. At January 31, 2001, the Company operated 1,736 discount stores, 888 Supercenters, 475 SAM'S Clubs and 19 Neighborhood Markets. Internationally, at January 31, 2001
OneSource Business Description:
Provider of an online site that sells retail home goods, clothing, electronics and other consumer goods. Parent/holding company with operating units involved in bulk grocery and home goods sales, logistics and warehousing services. Products and services a
Wal-Mart Stores, Inc.
Annual Income Statement
31-Jan-0131-Jan-0031-Jan-9931-Jan-9831-Jan-97
Sales--Core Business191,329.00165,013.00137,634.00117,958.00104,859.00
Sales--Other1,966.001,796.001,574.001,341.001,319.00
Total Sales193,295.00166,809.00139,208.00119,299.00106,178.00
Cost of Goods Sold150,255.00129,664.00108,725.0093,438.0083,510.00
SG&A Expense31,550.0027,040.0022,363.0019,358.0016,946.00
Interest Expense1,374.001,022.00797784845
Total Expenses183,179.00157,726.00131,885.00113,580.00101,301.00
Pre-Tax Income10,116.009,083.007,323.005,719.004,877.00
Income Taxes3,692.003,338.002,740.002,115.001,794.00
Income After Taxes6,424.005,745.004,583.003,604.003,083.00
Minority Interests-129-170-153-78-27
Net Income before EI & DO6,295.005,575.004,430.003,526.003,056.00
Accounting Change0-198000
Net Income after EI & DO6,295.005,377.004,430.003,526.003,056.00
Income Av to Comm Shareholders Incl E&D6,295.005,377.004,430.003,526.003,056.00
Income Av to Comm Shareholders Excl E&D6,295.005,575.004,430.003,526.003,056.00
Primary EPS Excluding E&D1.411.250.990.780.67
Primary EPS Including E&D1.411.210.990.780.67
Dividends Per Common Share0.240.20.160.140.11
Shares to Calculate Primary EPS (millions of shares)4,465.004,451.004,464.004,516.004,585.00
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Wal-Mart Stores, Inc.
Annual Balance Sheet
31-Jan-0131-Jan-0031-Jan-9931-Jan-9831-Jan-97
Assets
Cash & Equivalents2,054.001,856.001,879.001,447.00883
Accounts Receivable1,768.001,341.001,118.00976845
Inventory21,442.0019,793.0017,076.0016,497.0015,897.00
Prepayments & Advances1,291.001,366.001,059.00432368
Other Current Assets00000
Total Current Assets26,555.0024,356.0021,132.0019,352.0017,993.00
Property Plant & Equipment52,433.0045,348.0034,464.0027,376.0023,182.00
Accum Depr. & Amort.-11,499.00-9,379.00-8,491.00-5,907.00-4,849.00
Property Plant & Equipment, Other0002,137.001,991.00
Property Plant & Equipment, Net40,934.0035,969.0025,973.0023,606.0020,324.00
Goodwill/Intangibles9,059.009,392.002,538.0000
Other Long-Term Assets1,582.006323532,426.001,287.00
Total Assets78,130.0070,349.0049,996.0045,384.0039,604.00
Liabilities
Accounts Payable15,092.0013,105.0010,257.009,126.007,628.00
Short-Term Debt2,286.003,323.00000
Curr. LT Debt and CLOs4,375.002,085.001,006.001,141.00618
Other Current Liabilities7,196.007,290.005,499.004,193.002,711.00
Total Current Liabilities28,949.0025,803.0016,762.0014,460.0010,957.00
Long-Term Debt12,501.0013,672.006,908.007,191.007,709.00
Capitalized Lease Obligations3,154.003,002.002,699.002,483.002,307.00
Total Long-Term Debt15,655.0016,674.009,607.009,674.0010,016.00
Minority Interest1,140.001,279.001,799.001,938.001,025.00
Deferred Taxes1,043.00759716809463
Total Liabilities46,787.0044,515.0028,884.0026,881.0022,461.00
Stockholders' Equity
Common Stock447446445224228
Additional Paid in Capital1,411.00714435585547
Retained Earnings30,169.0025,129.0020,741.0018,167.0016,768.00
Other Equity-684-455-509-473-400
Total Shareholders' Equity31,343.0025,834.0021,112.0018,503.0017,143.00
Total Liabilities + Shareholders' Equity78,130.0070,349.0049,996.0045,384.0039,604.00
Shares Outstanding4,470.004,457.004,448.004,482.004,570.00
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Question 1:How liquid is the firm?20012000199919981997
Liquidity Approach 1:
Current Ratio0.920.941.261.341.64
Acid-test Ratio0.180.180.240.200.19
Liquidity Approach 2:
Average Collection Period3.342.932.932.992.90
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Question 2: is the firm generating an adequate return on it's investments?20012000199919981997
OROI Comp. 1:Operating Profit Margin5.94%6.06%5.83%5.45%5.39%
OROI Comp. 2:Total Asset Turnover2.472.372.782.632.68
Operating Return on Investment (OROI)14.71%14.36%16.24%14.33%14.45%
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Fixed Asset Turnover4.724.645.365.055.22
Question 3: How is the firm financing its assets?20012000199919981997
Debt Ratio59.88%63.28%57.77%59.23%56.71%
Times-Interest Earned Ratio (TIE)8.369.8910.198.296.77
Question 4: Is the firm generating an adequate return for its stockholders?20012000199919981997
Return on Equity (ROE)20.08%20.81%20.98%19.06%17.83%
DuPont Equation:
ROE Components:20012000199919981997
Net Profit Margin3.26%3.22%3.18%2.96%2.88%
Total Asset Turnover2.472.372.782.632.68
= Return on Assets (ROA)8.06%7.64%8.86%7.77%7.72%
divided by (1 - Debt Ratio)40.12%36.72%42.23%40.77%43.29%
= Return on Equity20.08%20.81%20.98%19.06%17.83%
US Business Browser
www.walmart.com/
Annual Sales: 193,295.0
Annual Assets: 78,130.0
Primary SIC: 5311 - Department stores
Industry: Retail (Department & Discount)
Glossary of Financial Variables
Glossary of Financial Variables
Are the stockholders receiving an adequate return on their investment?Return On Common Equity Net Income Available to Common Stockholders(including EI&DO)/Total Common EquityTotal Common Equity = Total Shareholders Equity Preferred Stock
Kmart & Wal-Marts Return on Equity
Kmart
US Business Browser
Kmart Corp. - Summary
Kmart Corp.
www.kmart.com/ (Stock Quote* or Chart*)
3100 West Big Beaver Road
Troy, MI48084
Oakland County
United States
Financials in Millions of ReportedPrimary SIC: 5331 - Variety stores
Industry: Retail (Specialty Non-Apparel)
Annual Sales: 37,028.0
Annual Assets: 14,630.0
Market Guide's Business Description:
Kmart Corporation is a discount retailer and general merchandise retailer. The Company operates in the general merchandise retailing industry through 2,105 Kmart discount stores, with locations in each of the 50 United States, Puerto Rico, the United Stat
OneSource Business Description:
Provider of name-brand and private-label retail services. Parent/holding company with a high-tech operating unit which provides online retail services. Products are sold to consumers.
Kmart Corp.
Annual Income Statement
31-Jan-0126-Jan-0027-Jan-9928-Jan-9829-Jan-97
Sales--Core Business37,028.0035,925.0033,674.0032,183.0031,437.00
Total Sales37,028.0035,925.0033,674.0032,183.0031,437.00
Cost of Goods Sold29,658.0028,111.0026,319.0025,152.0024,390.00
SG&A Expense7,415.006,514.006,245.006,136.006,274.00
Other Operating Expense0000-10
Unusual Inc/Exp00191140
Total Expenses37,073.0034,625.0032,583.0031,402.0030,654.00
Interest Net, Non-Oper-287-280-293-363-453
Other--Net00000
Pre-Tax Income-3321,020.00798418330
Income Taxes-13433723012068
Income After Taxes-198683568298262
Preferred Dividends-36-50-50-49-31
Interest Adj for Primary EPS00000
Net Income before EI & DO-198683568298262
Discontinued Operations0-23000-451
Extraordinary Items00000
Accounting Change00000
Net Income after EI & DO-198453568298-189
Preferred Dividends-36-50-50-49-31
Income Av to Comm Shareholders Incl E&D-234403518249-220
Income Av to Comm Shareholders Excl E&D-234633518249231
Primary EPS Excluding E&D-0.491.291.050.510.48
Primary EPS Including E&D-0.490.821.050.51-0.46
Dividends Per Common Share00000
Shares to Calculate Primary EPS (millions of shares)482.8491.7492.1487.1483.6
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Kmart Corp.
Annual Balance Sheet
31-Jan-0126-Jan-0027-Jan-9928-Jan-9829-Jan-97
Assets
Cash & Equivalents401344710498406
Accounts Receivable00000
Inventory6,412.007,101.006,536.006,367.006,354.00
Other Current Assets811715584611973
Total Current Assets7,624.008,160.007,830.007,476.007,733.00
Long-Term Investments00000
Property Plant & Equipment11,942.0011,554.0010,778.0010,131.0010,768.00
Accum Depr. & Amort.-5,385.00-5,144.00-4,864.00-4,659.00-5,028.00
Property Plant & Equipment, Net6,557.006,410.005,914.005,472.005,740.00
Other Long-Term Assets449534422610813
Total Assets14,630.0015,104.0014,166.0013,558.0014,286.00
Liabilities
Accounts Payable2,288.002,204.002,047.001,923.002,009.00
Short-Term Debt00000
Curr. LT Debt and CLOs68667778156
Other Current Liabilities1,443.001,806.001,567.001,273.001,437.00
Total Current Liabilities3,799.004,076.003,691.003,274.003,602.00
Long-Term Debt2,084.001,759.001,538.001,725.002,121.00
Capitalized Lease Obligations9431,014.001,091.001,179.001,478.00
Total Long-Term Debt3,027.002,773.002,629.002,904.003,599.00
Deferred Taxes00000
Other Long-Term Liabilities1,721.001,951.001,867.009651,013.00
Total Liabilities8,547.008,800.008,187.007,143.008,214.00
Stockholders' Equity
Preferred Stock000981980
Common Stock487481493489486
Additional Paid in Capital1,578.001,555.001,667.001,620.001,608.00
Retained Earnings4,018.004,268.003,819.003,343.003,105.00
Treasury Stock000-15-37
Other Equity000-3-70
Total Shareholders' Equity6,083.006,304.005,979.006,415.006,072.00
Total Liabilities + Shareholders' Equity14,630.0015,104.0014,166.0013,558.0014,286.00
Shares Outstanding486.5481.4493.4488.2484.7
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Question 1:How liquid is the firm?20012000199919981997
Liquidity Approach 1:
Current Ratio2.012.002.122.282.15
Acid-test Ratio0.320.260.350.340.38
Liquidity Approach 2:
Average Collection Period00000
Accounts Receivable Turnover00000
Inventory Turnover4.633.964.033.953.84
Question 2: is the firm generating an adequate return on it's investments?20012000199919981997
OROI Comp. 1:Operating Profit Margin-0.12%3.62%3.24%2.43%2.49%
OROI Comp. 2:Total Asset Turnover2.532.382.382.372.20
Operating Return on Investment (OROI)-0.31%8.61%7.70%5.76%5.48%
Accounts Receivable Turnover00000
Inventory Turnover4.633.964.033.953.84
Fixed Asset Turnover5.655.605.695.885.48
Question 3: How is the firm financing its assets?20012000199919981997
Debt Ratio58.42%58.26%57.79%52.68%57.50%
Times-Interest Earned Ratio (TIE)-0.164.643.722.151.73
Question 4: Is the firm generating an adequate return for its stockholders?20012000199919981997
Return on Equity (ROE)-3.85%6.39%8.66%4.58%-4.32%
DuPont Equation:
ROE Components:20012000199919981997
Net Profit Margin-0.63%1.12%1.54%0.77%-0.70%
Total Asset Turnover2.532.382.382.372.20
= Return on Assets (ROA)-1.60%2.67%3.66%1.84%-1.54%
divided by (1 - Debt Ratio)41.58%41.74%42.21%47.32%42.50%
= Return on Equity-3.85%6.39%8.66%3.88%-3.62%
US Business Browser
www.kmart.com/
Annual Sales: 37,028.0
Annual Assets: 14,630.0
Primary SIC: 5331 - Variety stores
Industry: Retail (Specialty Non-Apparel)
Glossary of Financial Variables
Glossary of Financial Variables
Sheet1
Question 1: How Liquid is the Firm?
Kmart
Approach 1:20012000199919981997
Current Ratio2.012.002.122.282.15
Acid-test (Quick) Ratio0.320.260.350.340.38
Approach 2:
Average Collection Period00000
Accounts Receivable Turnover
Inventory Turnover4.633.964.033.953.84
Question 1: How Liquid is the Firm?
Wal-Mart
Approach 1:20012000199919981997
Current Ratio0.920.941.261.341.64
Acid-test (Quick) Ratio0.180.180.240.200.19
Approach 2:
Average Collection Period3.342.932.932.992.90
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Question 2: Is Management Generating Adequate Operating Profits on the Firm's Assets?
Kmart
20012000199919981997
OIROI Component 1: Oper Profit Margin-0.1%3.6%3.2%2.4%2.5%
OIROI Component 2 : Total Asset Turnover2.532.382.382.372.20
Oper. Income Return On Investmt (OIROI)-0.3%8.6%7.7%5.8%5.5%
Accounts Receivable Turnover
Inventory Turnover4.633.964.033.953.84
Fixed Asset Turvover5.655.605.695.885.48
Question 2: Is Management Generating Adequate Operating Profits on the Firm's Assets?
Wal-Mart
20012000199919981997
OIROI Component 1: Oper Profit Margin5.9%6.1%5.8%5.5%5.4%
OIROI Component 2 : Total Asset Turnover2.4742.3712.7842.6292.681
Oper. Income Return On Investmt (OIROI)14.7%14.4%16.2%14.3%14.4%
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Fixed Asset Turvover4.724.645.365.055.22
Question 3: How is the Firm Financing Its Assets?
Kmart
20012000199919981997
Debt Ratio58.4%58.3%57.8%52.7%57.5%
Times-Interest-Earned Ratio-0.164.643.722.151.73
Question 3: How is the Firm Financing Its Assets?
Wal-Mart
20012000199919981997
Debt Ratio59.9%63.3%57.8%59.2%56.7%
Times-Interest-Earned Ratio8.369.8910.198.296.77
Question 4: Are the Owners Receiving an Adequate Return on Their Investment?
Kmart
20012000199919981997
Return on Common Equity-3.8%6.4%8.7%4.6%-4.3%
Question 4: Are the Owners Receiving an Adequate Return on Their Investment?
Wal-Mart
20012000199919981997
Return on Common Equity20.1%20.8%21.0%19.1%17.8%
Kmart
ROE Components:20012000199919981997
Net Profit Margin-0.6%1.1%1.5%0.8%-0.7%
Total Asset Turnover2.532.382.382.372.20
Return on Assets-1.6%2.7%3.7%1.8%-1.5%
1 - Debt Ratio0.420.420.420.470.43
Return On Equity-3.8%6.4%8.7%3.9%-3.6%
Wal-Mart
ROE Components:20012000199919981997
Net Profit Margin3.3%3.2%3.2%3.0%2.9%
Total Asset Turnover2.472.372.782.632.68
Return on Assets8.1%7.6%8.9%7.8%7.7%
1 - Debt Ratio0.400.370.420.410.43
Return On Equity20.1%20.8%21.0%19.1%17.8%
Wal-Mart
US Business Browser
Wal-Mart Stores, Inc. - Summary
Wal-Mart Stores, Inc.
www.walmart.com/ (Stock Quote* or Chart*)
702 Southwest 8th Street
Bentonville, AR72716
Benton County
United States
Financials in Millions of ReportedPrimary SIC: 5311 - Department stores
Industry: Retail (Department & Discount)
Annual Sales: 193,295.0
Annual Assets: 78,130.0
Market Guide's Business Description:
Wal-Mart Stores Inc. is principally engaged in the operation of mass merchandising stores. At January 31, 2001, the Company operated 1,736 discount stores, 888 Supercenters, 475 SAM'S Clubs and 19 Neighborhood Markets. Internationally, at January 31, 2001
OneSource Business Description:
Provider of an online site that sells retail home goods, clothing, electronics and other consumer goods. Parent/holding company with operating units involved in bulk grocery and home goods sales, logistics and warehousing services. Products and services a
Wal-Mart Stores, Inc.
Annual Income Statement
31-Jan-0131-Jan-0031-Jan-9931-Jan-9831-Jan-97
Sales--Core Business191,329.00165,013.00137,634.00117,958.00104,859.00
Sales--Other1,966.001,796.001,574.001,341.001,319.00
Total Sales193,295.00166,809.00139,208.00119,299.00106,178.00
Cost of Goods Sold150,255.00129,664.00108,725.0093,438.0083,510.00
SG&A Expense31,550.0027,040.0022,363.0019,358.0016,946.00
Interest Expense1,374.001,022.00797784845
Total Expenses183,179.00157,726.00131,885.00113,580.00101,301.00
Pre-Tax Income10,116.009,083.007,323.005,719.004,877.00
Income Taxes3,692.003,338.002,740.002,115.001,794.00
Income After Taxes6,424.005,745.004,583.003,604.003,083.00
Minority Interests-129-170-153-78-27
Net Income before EI & DO6,295.005,575.004,430.003,526.003,056.00
Accounting Change0-198000
Net Income after EI & DO6,295.005,377.004,430.003,526.003,056.00
Income Av to Comm Shareholders Incl E&D6,295.005,377.004,430.003,526.003,056.00
Income Av to Comm Shareholders Excl E&D6,295.005,575.004,430.003,526.003,056.00
Primary EPS Excluding E&D1.411.250.990.780.67
Primary EPS Including E&D1.411.210.990.780.67
Dividends Per Common Share0.240.20.160.140.11
Shares to Calculate Primary EPS (millions of shares)4,465.004,451.004,464.004,516.004,585.00
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Wal-Mart Stores, Inc.
Annual Balance Sheet
31-Jan-0131-Jan-0031-Jan-9931-Jan-9831-Jan-97
Assets
Cash & Equivalents2,054.001,856.001,879.001,447.00883
Accounts Receivable1,768.001,341.001,118.00976845
Inventory21,442.0019,793.0017,076.0016,497.0015,897.00
Prepayments & Advances1,291.001,366.001,059.00432368
Other Current Assets00000
Total Current Assets26,555.0024,356.0021,132.0019,352.0017,993.00
Property Plant & Equipment52,433.0045,348.0034,464.0027,376.0023,182.00
Accum Depr. & Amort.-11,499.00-9,379.00-8,491.00-5,907.00-4,849.00
Property Plant & Equipment, Other0002,137.001,991.00
Property Plant & Equipment, Net40,934.0035,969.0025,973.0023,606.0020,324.00
Goodwill/Intangibles9,059.009,392.002,538.0000
Other Long-Term Assets1,582.006323532,426.001,287.00
Total Assets78,130.0070,349.0049,996.0045,384.0039,604.00
Liabilities
Accounts Payable15,092.0013,105.0010,257.009,126.007,628.00
Short-Term Debt2,286.003,323.00000
Curr. LT Debt and CLOs4,375.002,085.001,006.001,141.00618
Other Current Liabilities7,196.007,290.005,499.004,193.002,711.00
Total Current Liabilities28,949.0025,803.0016,762.0014,460.0010,957.00
Long-Term Debt12,501.0013,672.006,908.007,191.007,709.00
Capitalized Lease Obligations3,154.003,002.002,699.002,483.002,307.00
Total Long-Term Debt15,655.0016,674.009,607.009,674.0010,016.00
Minority Interest1,140.001,279.001,799.001,938.001,025.00
Deferred Taxes1,043.00759716809463
Total Liabilities46,787.0044,515.0028,884.0026,881.0022,461.00
Stockholders' Equity
Common Stock447446445224228
Additional Paid in Capital1,411.00714435585547
Retained Earnings30,169.0025,129.0020,741.0018,167.0016,768.00
Other Equity-684-455-509-473-400
Total Shareholders' Equity31,343.0025,834.0021,112.0018,503.0017,143.00
Total Liabilities + Shareholders' Equity78,130.0070,349.0049,996.0045,384.0039,604.00
Shares Outstanding4,470.004,457.004,448.004,482.004,570.00
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Question 1:How liquid is the firm?20012000199919981997
Liquidity Approach 1:
Current Ratio0.920.941.261.341.64
Acid-test Ratio0.180.180.240.200.19
Liquidity Approach 2:
Average Collection Period3.342.932.932.992.90
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Question 2: is the firm generating an adequate return on it's investments?20012000199919981997
OROI Comp. 1:Operating Profit Margin5.94%6.06%5.83%5.45%5.39%
OROI Comp. 2:Total Asset Turnover2.472.372.782.632.68
Operating Return on Investment (OROI)14.71%14.36%16.24%14.33%14.45%
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Fixed Asset Turnover4.724.645.365.055.22
Question 3: How is the firm financing its assets?20012000199919981997
Debt Ratio59.88%63.28%57.77%59.23%56.71%
Times-Interest Earned Ratio (TIE)8.369.8910.198.296.77
Question 4: Is the firm generating an adequate return for its stockholders?20012000199919981997
Return on Equity (ROE)20.08%20.81%20.98%19.06%17.83%
DuPont Equation:
ROE Components:20012000199919981997
Net Profit Margin3.26%3.22%3.18%2.96%2.88%
Total Asset Turnover2.472.372.782.632.68
= Return on Assets (ROA)8.06%7.64%8.86%7.77%7.72%
divided by (1 - Debt Ratio)40.12%36.72%42.23%40.77%43.29%
= Return on Equity20.08%20.81%20.98%19.06%17.83%
US Business Browser
www.walmart.com/
Annual Sales: 193,295.0
Annual Assets: 78,130.0
Primary SIC: 5311 - Department stores
Industry: Retail (Department & Discount)
Glossary of Financial Variables
Glossary of Financial Variables
DuPont Analysis of Return on Common Equity (ROE)Breaks down company performance into operational and financing components.ROE = (Net Profit Margin x Total Asset Turnover)/(1-Debt Ratio), whereNet Profit Margin = Net Income(available to common stockholders including EI&DO)/SalesTotal Asset Turnover = Sales/Total AssetsDebt Ratio = Total Liabilities/Total AssetsNet Profit Margin x Total Asset Turnover = Return on Assets, which are the operating components.1/(1-Debt Ratio) = measures impact of financial leverage
How does Leverage work?Suppose we have an all equity-financed firm worth $100,000. Its earnings this year total $15,000.
ROE =
(ignore taxes for this example)
How does Leverage work?Suppose we have an all equity-financed firm worth $100,000. Its earnings this year total $15,000.
ROE = =15%
15,000100,000
How does Leverage work?Suppose the same $100,000 firm is financed with half equity, and half 8% debt (bonds). Earnings are still $15,000.
ROE =
How does Leverage work?Suppose the same $100,000 firm is financed with half equity, and half 8% debt (bonds). Earnings are still $15,000.ROE ==15,000 - 4,00050,000
How does Leverage work?Suppose the same $100,000 firm is financed with half equity, and half 8% debt (bonds). Earnings are still $15,000.ROE = = 22%15,000 - 4,00050,000
Kmart & Wal-Marts DuPont Analysis
Kmart
US Business Browser
Kmart Corp. - Summary
Kmart Corp.
www.kmart.com/ (Stock Quote* or Chart*)
3100 West Big Beaver Road
Troy, MI48084
Oakland County
United States
Financials in Millions of ReportedPrimary SIC: 5331 - Variety stores
Industry: Retail (Specialty Non-Apparel)
Annual Sales: 37,028.0
Annual Assets: 14,630.0
Market Guide's Business Description:
Kmart Corporation is a discount retailer and general merchandise retailer. The Company operates in the general merchandise retailing industry through 2,105 Kmart discount stores, with locations in each of the 50 United States, Puerto Rico, the United Stat
OneSource Business Description:
Provider of name-brand and private-label retail services. Parent/holding company with a high-tech operating unit which provides online retail services. Products are sold to consumers.
Kmart Corp.
Annual Income Statement
31-Jan-0126-Jan-0027-Jan-9928-Jan-9829-Jan-97
Sales--Core Business37,028.0035,925.0033,674.0032,183.0031,437.00
Total Sales37,028.0035,925.0033,674.0032,183.0031,437.00
Cost of Goods Sold29,658.0028,111.0026,319.0025,152.0024,390.00
SG&A Expense7,415.006,514.006,245.006,136.006,274.00
Other Operating Expense0000-10
Unusual Inc/Exp00191140
Total Expenses37,073.0034,625.0032,583.0031,402.0030,654.00
Interest Net, Non-Oper-287-280-293-363-453
Other--Net00000
Pre-Tax Income-3321,020.00798418330
Income Taxes-13433723012068
Income After Taxes-198683568298262
Preferred Dividends-36-50-50-49-31
Interest Adj for Primary EPS00000
Net Income before EI & DO-198683568298262
Discontinued Operations0-23000-451
Extraordinary Items00000
Accounting Change00000
Net Income after EI & DO-198453568298-189
Preferred Dividends-36-50-50-49-31
Income Av to Comm Shareholders Incl E&D-234403518249-220
Income Av to Comm Shareholders Excl E&D-234633518249231
Primary EPS Excluding E&D-0.491.291.050.510.48
Primary EPS Including E&D-0.490.821.050.51-0.46
Dividends Per Common Share00000
Shares to Calculate Primary EPS (millions of shares)482.8491.7492.1487.1483.6
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Kmart Corp.
Annual Balance Sheet
31-Jan-0126-Jan-0027-Jan-9928-Jan-9829-Jan-97
Assets
Cash & Equivalents401344710498406
Accounts Receivable00000
Inventory6,412.007,101.006,536.006,367.006,354.00
Other Current Assets811715584611973
Total Current Assets7,624.008,160.007,830.007,476.007,733.00
Long-Term Investments00000
Property Plant & Equipment11,942.0011,554.0010,778.0010,131.0010,768.00
Accum Depr. & Amort.-5,385.00-5,144.00-4,864.00-4,659.00-5,028.00
Property Plant & Equipment, Net6,557.006,410.005,914.005,472.005,740.00
Other Long-Term Assets449534422610813
Total Assets14,630.0015,104.0014,166.0013,558.0014,286.00
Liabilities
Accounts Payable2,288.002,204.002,047.001,923.002,009.00
Short-Term Debt00000
Curr. LT Debt and CLOs68667778156
Other Current Liabilities1,443.001,806.001,567.001,273.001,437.00
Total Current Liabilities3,799.004,076.003,691.003,274.003,602.00
Long-Term Debt2,084.001,759.001,538.001,725.002,121.00
Capitalized Lease Obligations9431,014.001,091.001,179.001,478.00
Total Long-Term Debt3,027.002,773.002,629.002,904.003,599.00
Deferred Taxes00000
Other Long-Term Liabilities1,721.001,951.001,867.009651,013.00
Total Liabilities8,547.008,800.008,187.007,143.008,214.00
Stockholders' Equity
Preferred Stock000981980
Common Stock487481493489486
Additional Paid in Capital1,578.001,555.001,667.001,620.001,608.00
Retained Earnings4,018.004,268.003,819.003,343.003,105.00
Treasury Stock000-15-37
Other Equity000-3-70
Total Shareholders' Equity6,083.006,304.005,979.006,415.006,072.00
Total Liabilities + Shareholders' Equity14,630.0015,104.0014,166.0013,558.0014,286.00
Shares Outstanding486.5481.4493.4488.2484.7
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Question 1:How liquid is the firm?20012000199919981997
Liquidity Approach 1:
Current Ratio2.012.002.122.282.15
Acid-test Ratio0.320.260.350.340.38
Liquidity Approach 2:
Average Collection Period00000
Accounts Receivable Turnover00000
Inventory Turnover4.633.964.033.953.84
Question 2: is the firm generating an adequate return on it's investments?20012000199919981997
OROI Comp. 1:Operating Profit Margin-0.12%3.62%3.24%2.43%2.49%
OROI Comp. 2:Total Asset Turnover2.532.382.382.372.20
Operating Return on Investment (OROI)-0.31%8.61%7.70%5.76%5.48%
Accounts Receivable Turnover00000
Inventory Turnover4.633.964.033.953.84
Fixed Asset Turnover5.655.605.695.885.48
Question 3: How is the firm financing its assets?20012000199919981997
Debt Ratio58.42%58.26%57.79%52.68%57.50%
Times-Interest Earned Ratio (TIE)-0.164.643.722.151.73
Question 4: Is the firm generating an adequate return for its stockholders?20012000199919981997
Return on Equity (ROE)-3.85%6.39%8.66%4.58%-4.32%
DuPont Equation:
ROE Components:20012000199919981997
Net Profit Margin-0.63%1.12%1.54%0.77%-0.70%
Total Asset Turnover2.532.382.382.372.20
= Return on Assets (ROA)-1.60%2.67%3.66%1.84%-1.54%
divided by (1 - Debt Ratio)41.58%41.74%42.21%47.32%42.50%
= Return on Equity-3.85%6.39%8.66%3.88%-3.62%
US Business Browser
www.kmart.com/
Annual Sales: 37,028.0
Annual Assets: 14,630.0
Primary SIC: 5331 - Variety stores
Industry: Retail (Specialty Non-Apparel)
Glossary of Financial Variables
Glossary of Financial Variables
Sheet1
Question 1: How Liquid is the Firm?
Kmart
Approach 1:20012000199919981997
Current Ratio2.012.002.122.282.15
Acid-test (Quick) Ratio0.320.260.350.340.38
Approach 2:
Average Collection Period00000
Accounts Receivable Turnover
Inventory Turnover4.633.964.033.953.84
Question 1: How Liquid is the Firm?
Wal-Mart
Approach 1:20012000199919981997
Current Ratio0.920.941.261.341.64
Acid-test (Quick) Ratio0.180.180.240.200.19
Approach 2:
Average Collection Period3.342.932.932.992.90
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Question 2: Is Management Generating Adequate Operating Profits on the Firm's Assets?
Kmart
20012000199919981997
OIROI Component 1: Oper Profit Margin-0.1%3.6%3.2%2.4%2.5%
OIROI Component 2 : Total Asset Turnover2.532.382.382.372.20
Oper. Income Return On Investmt (OIROI)-0.3%8.6%7.7%5.8%5.5%
Accounts Receivable Turnover
Inventory Turnover4.633.964.033.953.84
Fixed Asset Turvover5.655.605.695.885.48
Question 2: Is Management Generating Adequate Operating Profits on the Firm's Assets?
Wal-Mart
20012000199919981997
OIROI Component 1: Oper Profit Margin5.9%6.1%5.8%5.5%5.4%
OIROI Component 2 : Total Asset Turnover2.4742.3712.7842.6292.681
Oper. Income Return On Investmt (OIROI)14.7%14.4%16.2%14.3%14.4%
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Fixed Asset Turvover4.724.645.365.055.22
Question 3: How is the Firm Financing Its Assets?
Kmart
20012000199919981997
Debt Ratio58.4%58.3%57.8%52.7%57.5%
Times-Interest-Earned Ratio-0.164.643.722.151.73
Question 3: How is the Firm Financing Its Assets?
Wal-Mart
20012000199919981997
Debt Ratio59.9%63.3%57.8%59.2%56.7%
Times-Interest-Earned Ratio8.369.8910.198.296.77
Question 4: Are the Owners Receiving an Adequate Return on Their Investment?
Kmart
20012000199919981997
Return on Common Equity-3.8%6.4%8.7%4.6%-4.3%
Question 4: Are the Owners Receiving an Adequate Return on Their Investment?
Wal-Mart
20012000199919981997
Return on Common Equity20.1%20.8%21.0%19.1%17.8%
Kmart
ROE Components:20012000199919981997
Net Profit Margin-0.6%1.1%1.5%0.8%-0.7%
Total Asset Turnover2.532.382.382.372.20
Return on Assets-1.6%2.7%3.7%1.8%-1.5%
1 - Debt Ratio0.420.420.420.470.43
Return On Equity-3.8%6.4%8.7%3.9%-3.6%
Wal-Mart
ROE Components:20012000199919981997
Net Profit Margin3.3%3.2%3.2%3.0%2.9%
Total Asset Turnover2.472.372.782.632.68
Return on Assets8.1%7.6%8.9%7.8%7.7%
1 - Debt Ratio0.400.370.420.410.43
Return On Equity20.1%20.8%21.0%19.1%17.8%
Wal-Mart
US Business Browser
Wal-Mart Stores, Inc. - Summary
Wal-Mart Stores, Inc.
www.walmart.com/ (Stock Quote* or Chart*)
702 Southwest 8th Street
Bentonville, AR72716
Benton County
United States
Financials in Millions of ReportedPrimary SIC: 5311 - Department stores
Industry: Retail (Department & Discount)
Annual Sales: 193,295.0
Annual Assets: 78,130.0
Market Guide's Business Description:
Wal-Mart Stores Inc. is principally engaged in the operation of mass merchandising stores. At January 31, 2001, the Company operated 1,736 discount stores, 888 Supercenters, 475 SAM'S Clubs and 19 Neighborhood Markets. Internationally, at January 31, 2001
OneSource Business Description:
Provider of an online site that sells retail home goods, clothing, electronics and other consumer goods. Parent/holding company with operating units involved in bulk grocery and home goods sales, logistics and warehousing services. Products and services a
Wal-Mart Stores, Inc.
Annual Income Statement
31-Jan-0131-Jan-0031-Jan-9931-Jan-9831-Jan-97
Sales--Core Business191,329.00165,013.00137,634.00117,958.00104,859.00
Sales--Other1,966.001,796.001,574.001,341.001,319.00
Total Sales193,295.00166,809.00139,208.00119,299.00106,178.00
Cost of Goods Sold150,255.00129,664.00108,725.0093,438.0083,510.00
SG&A Expense31,550.0027,040.0022,363.0019,358.0016,946.00
Interest Expense1,374.001,022.00797784845
Total Expenses183,179.00157,726.00131,885.00113,580.00101,301.00
Pre-Tax Income10,116.009,083.007,323.005,719.004,877.00
Income Taxes3,692.003,338.002,740.002,115.001,794.00
Income After Taxes6,424.005,745.004,583.003,604.003,083.00
Minority Interests-129-170-153-78-27
Net Income before EI & DO6,295.005,575.004,430.003,526.003,056.00
Accounting Change0-198000
Net Income after EI & DO6,295.005,377.004,430.003,526.003,056.00
Income Av to Comm Shareholders Incl E&D6,295.005,377.004,430.003,526.003,056.00
Income Av to Comm Shareholders Excl E&D6,295.005,575.004,430.003,526.003,056.00
Primary EPS Excluding E&D1.411.250.990.780.67
Primary EPS Including E&D1.411.210.990.780.67
Dividends Per Common Share0.240.20.160.140.11
Shares to Calculate Primary EPS (millions of shares)4,465.004,451.004,464.004,516.004,585.00
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Wal-Mart Stores, Inc.
Annual Balance Sheet
31-Jan-0131-Jan-0031-Jan-9931-Jan-9831-Jan-97
Assets
Cash & Equivalents2,054.001,856.001,879.001,447.00883
Accounts Receivable1,768.001,341.001,118.00976845
Inventory21,442.0019,793.0017,076.0016,497.0015,897.00
Prepayments & Advances1,291.001,366.001,059.00432368
Other Current Assets00000
Total Current Assets26,555.0024,356.0021,132.0019,352.0017,993.00
Property Plant & Equipment52,433.0045,348.0034,464.0027,376.0023,182.00
Accum Depr. & Amort.-11,499.00-9,379.00-8,491.00-5,907.00-4,849.00
Property Plant & Equipment, Other0002,137.001,991.00
Property Plant & Equipment, Net40,934.0035,969.0025,973.0023,606.0020,324.00
Goodwill/Intangibles9,059.009,392.002,538.0000
Other Long-Term Assets1,582.006323532,426.001,287.00
Total Assets78,130.0070,349.0049,996.0045,384.0039,604.00
Liabilities
Accounts Payable15,092.0013,105.0010,257.009,126.007,628.00
Short-Term Debt2,286.003,323.00000
Curr. LT Debt and CLOs4,375.002,085.001,006.001,141.00618
Other Current Liabilities7,196.007,290.005,499.004,193.002,711.00
Total Current Liabilities28,949.0025,803.0016,762.0014,460.0010,957.00
Long-Term Debt12,501.0013,672.006,908.007,191.007,709.00
Capitalized Lease Obligations3,154.003,002.002,699.002,483.002,307.00
Total Long-Term Debt15,655.0016,674.009,607.009,674.0010,016.00
Minority Interest1,140.001,279.001,799.001,938.001,025.00
Deferred Taxes1,043.00759716809463
Total Liabilities46,787.0044,515.0028,884.0026,881.0022,461.00
Stockholders' Equity
Common Stock447446445224228
Additional Paid in Capital1,411.00714435585547
Retained Earnings30,169.0025,129.0020,741.0018,167.0016,768.00
Other Equity-684-455-509-473-400
Total Shareholders' Equity31,343.0025,834.0021,112.0018,503.0017,143.00
Total Liabilities + Shareholders' Equity78,130.0070,349.0049,996.0045,384.0039,604.00
Shares Outstanding4,470.004,457.004,448.004,482.004,570.00
Glossary of Financial Variables
Copyright 2002, Market Guide, Inc. Published by OneSource Information Services, Inc., Feb, 2002.
Question 1:How liquid is the firm?20012000199919981997
Liquidity Approach 1:
Current Ratio0.920.941.261.341.64
Acid-test Ratio0.180.180.240.200.19
Liquidity Approach 2:
Average Collection Period3.342.932.932.992.90
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Question 2: is the firm generating an adequate return on it's investments?20012000199919981997
OROI Comp. 1:Operating Profit Margin5.94%6.06%5.83%5.45%5.39%
OROI Comp. 2:Total Asset Turnover2.472.372.782.632.68
Operating Return on Investment (OROI)14.71%14.36%16.24%14.33%14.45%
Accounts Receivable Turnover109.33124.39124.52122.23125.65
Inventory Turnover7.016.556.375.665.25
Fixed Asset Turnover4.724.645.365.055.22
Question 3: How is the firm financing its assets?20012000199919981997
Debt Ratio59.88%63.28%57.77%59.23%56.71%
Times-Interest Earned Ratio (TIE)8.369.8910.198.296.77
Question 4: Is the firm generating an adequate return for its stockholders?20012000199919981997
Return on Equity (ROE)20.08%20.81%20.98%19.06%17.83%
DuPont Equation:
ROE Components:20012000199919981997
Net Profit Margin3.26%3.22%3.18%2.96%2.88%
Total Asset Turnover2.472.372.782.632.68
= Return on Assets (ROA)8.06%7.64%8.86%7.77%7.72%
divided by (1 - Debt Ratio)40.12%36.72%42.23%40.77%43.29%
= Return on Equity20.08%20.81%20.98%19.06%17.83%
US Business Browser
www.walmart.com/
Annual Sales: 193,295.0
Annual Assets: 78,130.0
Primary SIC: 5311 - Department stores
Industry: Retail (Department & Discount)
Glossary of Financial Variables
Glossary of Financial Variables
Caveats of Ratio AnalysisDifferent Accounting Practices.Sometimes hard to pick an industry for comparison.Seasonality in Operations.