OPERATING ACTIVITIES ANALYSIS REPORT on WALMART STORES INC.

Write a 1000-word report in current APA format analyzing the operating activities for WALMART STORES INC. from the information in the Excel doc.. Include the following in your report:

1. Identify core income sources
2. Identify comprehensive income sources
3. Examine the quality of earnings
4. Distinguish between operating and non-operating sources of earnings
5. Distinguish between permanent and transitory earnings
6. Discusstheimplicationsconcerningprojectingfutureearningsforthecompany.

Please see Attach EXCEL File with info. Tabs are labeled in the spreadsheet.

Johanna McLendon Acct 370 Excel Project Company Name Walmart Ticker Symbol WMT Industry Food and Staples Retailing Products & Services Wal-Mart Stores, Inc. is engaged in the operation of retail, wholesale and other units in various formats around the world. The Company o Major Competitors Target, Costco, Best Buy pany offers an assortment of merchandise and services at everyday low prices (EDLP). The Company's operations are conducted in three segments: Walmart U.S., Wa Walmart International and Sam's Club. The Walmart U.S. segment operates retail stores in all 50 states in the United States RevenueValues displayed are in millions. 2012 2013 2014 2015 1/31/2013 1/31/2014 1/31/2015 446,509 468,651 476,294 485,651 2012 2013 2014 2015 1/31/2013 1/31/2014 1/31/2015 334,993 352,297 358,069 365,086 85,025 88,629 91,353 93,418 420,018 440,926 449,422 458,504 2012 2013 2014 2015 1/31/2013 1/31/2014 1/31/2015 26,491 27,725 26,872 27,147 2012 2013 2014 2015 1/31/2013 1/31/2014 1/31/2015 -2,320 -2,249 -2,335 -2,461 161 186 119 113 24,332 25,662 24,656 24,799 2012 2013 2014 2015 1/31/2013 1/31/2014 1/31/2015 7,924 7,958 8,105 7,985 16,408 17,704 16,551 16,814 1/31/2012 Total Revenue Operating ExpensesValues displayed are in millions. 1/31/2012 Cost of Revenue, Total Sell/Gen/AdminExpenses,Tot Total Operating Expense Operating IncomeValues displayed are in millions. 1/31/2012 Total Operating Income Non-Operating Income & ExpensesValues displayed are in millions. 1/31/2012 Inter Expse,Net Non-Operat Inter/Invest Inc, Non-Oper Income Before Tax Income TaxesValues displayed are in millions. 1/31/2012 Income Tax - Total Income After Tax Minority Interest and Equity in AffiliatesValues displayed are in millions. 2012 2015 1/31/2014 1/31/2015 -688 -757 -673 -736 15,720 16,947 15,878 16,078 2013 2014 2015 1/31/2012 1/31/2013 1/31/2014 1/31/2015 -21 52 144 285 2012 Net Inc Before Extra Items 2014 1/31/2013 2012 Minority Interest 2013 1/31/2012 2013 2014 2015 1/31/2013 1/31/2014 1/31/2015 16,999 16,022 16,363 Extraordinary ItemsValues displayed are in millions. Total Extraordinary Items Net IncomeValues displayed are in millions. 1/31/2012 Total Net Income 15,699 Adjustments to Net IncomeValues displayed are in millions. 2012 1/31/2012 2013 2014 2015 1/31/2013 1/31/2014 1/31/2015 Income Available to Common Excl. E 15,720 16,947 15,878 16,078 Income Available to Common Incl. E 15,699 16,999 16,022 16,363 2012 2013 2014 2015 1/31/2012 1/31/2013 1/31/2014 1/31/2015 EPS ReconciliationValues displayed are in millions. Basic/Primary Weighted Averag 3,460 3,374 3,269 3,230 Basic/Primary EPS Excl. Extra. 4.54 5.02 4.86 4.98 Basic/Primary EPS Incl. Extra. I 4.54 5.04 4.9 5.07 Diluted Weighted Average Share 3,474 3,389 3,283 3,243 Diluted EPS Excl. Extra. Items 4.53 5 4.84 4.96 Diluted EPS Incl. Extra. Items 4.52 5.02 4.88 5.05 2012 2013 2014 2015 1/31/2012 1/31/2013 1/31/2014 1/31/2015 1.46 1.59 1.88 1.92 5,048 5,361 6,139 6,185 2012 2013 2014 2015 1/31/2012 1/31/2013 1/31/2014 1/31/2015 Common Stock DividendsValues displayed are in millions. Div/Share-ComStockPrimIssue Gross Divid - Common Stock Pro Forma IncomeValues displayed are in millions. Pro Forma Net Income -- -- -- -- Supplemental ItemsValues displayed are in millions. 2012 2013 2014 2015 1/31/2013 1/31/2014 1/31/2015 2,320 2,249 2,335 2,461 -60 -74 -78 -59 8,130 8,501 8,870 9,173 1/31/2012 Interest Expense, Suppl Interest Capitalized, Suppl Depreciat/Amort, Suppl Normalized IncomeValues displayed are in millions. 2012 2013 2014 2015 1/31/2013 1/31/2014 1/31/2015 24,332 25,662 24,656 24,799 7,924 7,958 8,105 7,985 Normalized Income After Tax 16,408 17,704 16,551 16,814 Normalzd Inc Avail to Common 1/31/2012 Normalzd Income Before Tax IncTxsExcl ImpctofSpec Itms 15,720 16,947 15,878 16,078 Basic Normalized EPS 4.54 5.02 4.86 4.98 Diluted Normalized EPS 4.53 5 4.84 4.96 AssetsValues displayed are in millions. 2012 1/31/2012 Cash and Short Term Invs Trade Accts Recvble, Gross Prov. for Doubtful Accts Total Receivables, Net Total Inventory Prepaid Expenses Restricted Cash - Current Discont. Ops.-Curr. Assets Other Curr. Assets, Total Total Current Assets 6,003 --- 2013 2014 2015 1/31/2013 1/31/2014 1/31/2015 7,066 6,627 9,135 -- -- -- -- -- -- 5,937 6,768 6,677 6,778 40,714 43,803 44,858 45,141 1,774 1,588 1,909 2,224 547 715 654 -- -- -- 460 0 547 715 1,114 0 54,975 59,940 61,185 63,278 Buildings 84,275 90,686 95,488 -- Land/Improvements 23,499 25,612 26,184 -- 2,682 2,796 2,785 -- Machinery/Equipment Construction in Progress 5,312 5,828 5,661 -- Other Prop./Plant/Equip. 45,170 46,802 48,560 182,634 Prop./Plant/Equip. - Gross 160,938 171,724 178,678 182,634 Accumulated Depreciation -48,614 -55,043 -60,771 -65,979 Prop./Plant/Equip. - Net 112,324 116,681 117,907 116,655 20,651 20,497 19,510 18,102 5,456 5,987 6,149 5,455 193,406 203,105 204,751 203,490 Goodwill, Net Other Long Term Assets Total Assets LiabilitiesValues displayed are in millions. 2012 1/31/2012 2013 2014 2015 1/31/2013 1/31/2014 1/31/2015 Accounts Payable 36,608 38,080 37,415 38,410 Accrued Expenses 18,180 18,808 18,793 19,152 Notes Payable/ST Debt 4,047 6,805 7,670 1,592 Curr. Port. LT Dbt/Cap Ls. 2,301 5,914 4,412 5,078 Dividends Payable Income Taxes Payable Discontinued Operations Other Curr. Lblts, Total -1,164 -- -- -- 2,211 -- 0 966 89 1,021 0 1,164 2,211 1,055 1,021 Total Current Liabilities 62,300 71,818 69,345 65,253 Long Term Debt 44,070 38,394 41,771 40,889 3,009 3,023 2,788 2,606 47,079 41,417 44,559 43,495 53,427 54,136 56,641 50,165 Deferred Income Tax 7,862 7,613 8,017 8,805 Minority Interest 4,850 5,914 6,575 4,543 122,091 126,762 128,496 122,096 2012 2013 2014 2015 1/31/2012 1/31/2013 1/31/2014 1/31/2015 342 332 323 323 Additional Paid-In Capital 3,692 3,620 2,362 2,462 Ret. Earn.(Accum. Deficit) 68,691 72,978 76,566 85,777 Capital Lease Obligations Total Long Term Debt Total Debt Total Liabilities Shareholder EquityValues displayed are in millions. Common Stock Cum. Trans. Adjustment -- -- -2,722 -7,011 Min. Pension Lblty Adj. -- -- -610 -679 Other Comprehensive Income -1,410 -587 336 522 Other Equity, Total -1,410 -587 -2,996 -7,168 71,315 76,343 76,255 81,394 193,406 203,105 204,751 203,490 3,418 3,314 3,233 3,228 0 0 0 0 Total Equity Total Liabilities & Shareholders' Equity Ttl Comm. Shares Outs. Trsy. Shrs-Comm. Primary Iss. LIQUIDITY RATIOS 2012 Current Ratio Quick Ratio 2013 0.88 0.2 2014 0.83 0.2 2015 0.88 0.2 0.97 0.24 LEVERAGE RATIOS Debt to Total Asset Ratio Debt Equity Ratio Long-Term Debt to Equity Times Interest Earned Ratio 0.66 22.79 11.51 0.54 18.9 12.43 0.58 20.4 11.56 24.73 0.54 20.17 11.08 8.7 4.06 2.39 81.07 38.21 8.34 4.1 2.37 73.85 38.67 8.08 4.06 2.34 70.85 38.48 8.11 4.14 2.38 72.19 37.9 25.02 5.94 3.51 8.39 22.45 4.61 13.25 24.87 5.93 3.32 8.57 23.02 5.16 14.48 24.82 5.64 3.36 7.86 21 4.96 15.34 24.83 5.59 3.37 8.01 20.76 5.07 15.91 ACTIVITY RATIOS Inventory Turnover Fixed Asset Turnover Total Asset Turnover Accounts Rec. Turnover Average Collection Period PROFITABILITY RATIOS Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Total Assets Return on Stockholder's Equity Earnings Per Share Price Earnings Ratio For the fiscal year ended 2014 (millions, except per share data) Total Revenues Cost of Sales Selling, general and admin. Expenses Preopening expenses Depreciation and amortization EBIT Net Interest Expense Earnings from continuing operations before income taxes Provision for income taxes Net earning from continuing operations Discontinued operations, net of tax Net (loss)/earnings Basic (loss)/earnings per share Continuing operations Discontinues operations Net (loss)/earnings per share Diluted (loss)/earnings per share Continuing operations Discontinued operations Net (loss)/earnings per share Weighted average common shares outstanding Basic Dilutive effect of share-based awards Diluted Antidilutive Shares Net (loss)/income Other comprehensive income/(loss), net of tax Pension and other benefit liabilities Currency translation adjustment and cash flow hedges Other comprehensive income /(loss) Comprehensive (loss)/income Target 2014 Annual Report Costco 2014 Annual Report Walmart 2014 Annual Report Target Costco 72,618 51,278 14,676 2,129 4,535 882 3,653 1,204 2,449 -4,085 -1,636 3.86 -6.44 -2.56 3.83 -6.38 -2.56 634.7 5.4 640.1 3.3 -1,636 -139 431 292 -1,344 Walmart 112,640 98,458 10,899 63 476,294 358,069 91,353 3,197 -113 3084 1,109 2,088 -30 2,058 24656 2,216 22,440 8,105 16,695 -673 16,022 4.69 4.87 0.03 4.9 4.65 4.85 0.03 4.88 3,269 2,088 2,137 33 2,104 3,283 1.88 16,022 -2,786 360 -3,146 2,409 13,613 For the fiscal year ended during 2014 Assets Cash and cash equivalents Short-term investments Inventory Receivables, net Dererred income taxes and other current assets Assets of discontinued operations Other current assets Total current assets Property and equipment Land Buildings and improvements Fixtures and equipment Computer hardware and software Construction-in-progress Accumulated depreciation Property and equipment,net Noncurrent assets of discontinued operations Other noncurrent assets Total Assets Liabilities and shareholders' investment Accounts payable Short-term borrowings Accrued and other current liabilities Current portion of long-term debt and other borrowings Liabilities of discontinued operations Total current liabilities Long-term debt and other borrowings Deferred income taxes Noncurrent liabilities of discontinued operations Other noncurrent liabilities Total noncurrent liabilities Shareholders' investment Common stock Additional paid-in-capital Retained earnings Accumulated other comprehensive loss Pension and other benefit liabilities Currency translation adjustment and cash flow hedges Total shareholders' investment Total liabilities and shareholders' investment Target 2014 Annual Report Costco 2014 Annual Report Walmart 2014 Annual Report Target Costco 670 8,278 Walmart 5,738 1,577 8,456 1,148 669 7,281 44,858 6,677 793 1,832 11,573 17,588 61,185 6,143 25,984 5,199 2,395 757 -14,066 26,412 5,461 1,107 $44,553 4,716 12,522 4,845 0 592 -7,845 14,830 2 606 33,024 117,907 $7,335 8,491 3,610 1,143 689 12,777 11,429 1,349 1,296 1,471 15,545 5,921 14,412 5,093 1,004 37,415 7,670 19,759 4,412 89 69,345 44,559 8,017 20,509 1,491 121,921 53 4,470 12,599 -422 -469 16,231 $44,553 460 178,678 -60,771 25659 204,751 2 4,919 7,458 -76 323 2,362 76,566 -2,996 5,084 12,515 33,024 81,339 204,751 For fiscal year ended during 2014 Target Costco Walmart Industry LIQUIDITY RATIOS Current Ratio Quick Ratio 0.91 0.26 1.22 0.59 0.88 0.2 1.09 0.37 Debt to Total Asset Ratio Debt Equity Ratio Long-Term Debt to Equity Times Interest Earned Ratio 0.47 0.87 0.84 4.07 0.29 0.41 0.41 29.29 0.22 0.58 0.74 11.56 6.14 2.34 1.57 52.58 59.46 12.04 7.85 3.56 95.9 30.33 8.08 4.06 2.34 70.85 38.48 10.74 29.4% 5.83 2.72 4.42 12.14 3.83 31.7 12.6 2.9 1.83 6.5 17.79 4.65 29.78 24.38 5.68 3.39 7.83 21.01 4.9 17.8 21.21 8.24 4.75 6.56 17.86 LEVERAGE RATIOS 1.1 14.09 ACTIVITY RATIOS Inventory Turnover Fixed Asset Turnover Total Asset Turnover Accounts Rec. Turnover Average Collection Period 2.28 12.39 PROFITABILITY RATIOS Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Total Assets Return on Stockholder's Equity Earnings Per Share Price Earnings Ratio Target 2014 Annual Report 24.15