Unit 9 Assignment: Comprehensive Financial Analysis
Your paper should approach 20-pages and should be viewed as a term paper. Ask your instructor any questions in the Virtual Office.
Refer to the following documents found in Course Documents to help you with this assignment:
Format for the Walmart Research Paper
Walmart Proforma Income Excel Spreadsheet
Walmart Ratio Solutions 2017 LAPM (Use this as a guide.)
In this assignment, you will be assessed based on the following Outcomes:
MT482-6: Determine the value of a company through conducting effective earnings forecasts and analysis.
GEL-1.02: Demonstrate college-level communication through the composition of original materials in Standard English.
This is a challenging activity. You should prepare to spend substantial time working on your response.
In this research paper, you will dig deep into the financial statements of Walmart. You will analyze the companyâ€™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 â€œbuy, sell, and holdâ€ recommendations derived from analysis like this. I bet those jobs pay very nicely, donâ€™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 companyâ€™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 companyâ€™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)
Total Debt to Total Asset
Asset Management Ratios (Activity A)
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
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 assignment.
Walmart, Inc. (n.d.). https://www.msn.com/en-us/money/stockdetails/financials/fi-126.1.WMT.NYS
This assignment requires the following in addition to the criteria above:
Submit your paper in a Microsoft WordÂ® document. Include a title page with your name, course number, instructor name, date, subject, and include a brief statement that you (and you alone) produced the paper. Further format details will be provided by your instructor.
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, 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 cite in-text citations where appropriate and reference all sources. Your sources and content should follow proper current APA style. Review the APA formats found in the Writing Center accessed through the Academic Success Center within the Academic Tools area of the course. (Your paper should include a title page, paper is double-spaced, in Times New Roman 12-point font, correct citations, Standard English with no spelling or punctuation errors, and correct references on the references page.)
Clear business writing; spelling and grammar acceptable; effective use of current APA style; followed the required format and instructions.
Include the elements detailed in the grading rubric.