Horizontal and Vertical Analysis of Wallmart 10k

Horizontal and vertical analysis of Walmart 10-k annual report of
consolidated balance sheets 2018-2017
Corporate Financies
Gustavo Allauca Valencia
Andrea Ccente Diaz del Olmo
David Chavesta Ramirez
Kelly Orozco Rosales
Ricardo Palma University
Group 2
Teacher: Carlos Gonzalez Taranco
May of 2020
INDICE
Introduction ……………………………………………………. 3
Chapter 1: Horizontal Analysis ………………………………... 4
Chapter 2: Vertical Analysis …………………………………… 6
Conclusions …………………………………………………….. 8
2
Introduction
This information is about the vertical and horizontal analysis of the annual 10-k
consolidated balance sheet of 2018 compare to 2017 of Walmart, and how this company
has been affected one year to the other.
3
Chapter 1: Horizontal Analysis
This chapter will have the complete analysis with a final commentary.
Analysis:
4
 The total current assets have increase comparing with 2017 because of the prepaid
expenses and others, and the inventories, means it had higher sales.
 The property and equipment has decreased related with 2017 because of the
increase of the depreciation, this can be negative for the corporation.
 In the horizontal analysis of the Walmart company, an increase of $ 5,697 can be
observed with respect to the year 2017 to the year 2018, which is favorable for the
company because it presents an increase in its assets, financial obligations and
capital.
Final commentary:
Also we can see that there was a decrease in the effective and equivalent item and
accounts receivable compared to the previous year, but in inventories and prepaid
expenses and others, an increase was generated that makes us have an increase in the
total current assets.
In property and equipment and less accumulated depreciation there was an increase but
also a small decrease in property and equipment.
There is a considerable increase in property under capital lease and financial
obligations, property under capital lease and financial obligations, net and goodwill that
makes us have an increase in total assets.
In conclusion Walmart in 2018 has increased much more than 2017, this means that the
company had a good year and had more sales so they had to expand them buying more
equipment and asking for more financial to the bank to buy more inventories.
5
6
Chapter 2: Vertical Analysis
This chapter will have the complete analysis with a final commentary.
Analysis:
 The percentage of the cash and equivalents has increased, that is positive for the
enterprise.
7
 The percentage of the receivables has decreased which is good for the company.
 The percentage of inventories has decreased in 2018 compare with 2017 due the
depreciation has increased.
 The percentage of current assets has increase because of prepaid expenses and
other.
 An increase in property and equipment of 0.25% was generated.
 The percentage of property and equipment has decreased compare to 2017 because
of the depreciation.
 The percentage of total assets in 2018 is higher with reference to 2017. This clearly
indicates that the company is making good profits by having more assets than
liabilities. In other words, you have fewer obligations to pay.
 The percentage of current liabilities increased because of the accounts payable
which is not good for the company.
Final commentary:
In the vertical analysis, we can see that there was an increase in total assets in 2018 with $
204,522,000, a greater amount compared to the previous year, which was $ 198,825,000.
8
Conclusions
We can conclude that the Walmart company has great monetary liquidity, which is
beneficial for it, because it has enough money to obtain greater assets such as machinery,
investments, Transport equipment, among other important assets for the company. The
company also has cash to pay its obligations such as Suppliers, short-term debts with credit
institutions and pending remuneration payment. So they don’t need bank financing. We
can see that thanks to the depreciation, the property and equipment network has been
devalued. Therefore, we have to recover the value of new assets, the value of the company
by making a new investment in the purchase of property and equipment.

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Horizontal and vertical analysis of Walmart 10-k annual report of

consolidated balance sheets 2018-2017

Gustavo Allauca Valencia

Andrea Ccente Diaz del Olmo

David Chavesta Ramirez

Kelly Orozco Rosales

Ricardo Palma University

Teacher: Carlos Gonzalez Taranco

Chapter 1: Horizontal Analysis ………………………………... 4

Chapter 2: Vertical Analysis …………………………………… 6

has been affected one year to the other.

increase of the depreciation, this can be negative for the corporation.

 In the horizontal analysis of the Walmart company, an increase of $ 5,697 can be

company because it presents an increase in its assets, financial obligations and

total current assets.

also a small decrease in property and equipment.

There is a considerable increase in property under capital lease and financial

makes us have an increase in total assets.

depreciation has increased.

 An increase in property and equipment of 0.25% was generated.

liabilities. In other words, you have fewer obligations to pay.

 The percentage of current liabilities increased because of the accounts payable

which is not good for the company.

by making a new investment in the purchase of property and equipment.

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