CAPITAL BUDGETING

Walmart

Tresa Jellison
November 24, 2014
QRB/501
Professor Smothers

CAPITAL BUDGETING CASE STUDY

Walmart was opened in 1962 in Rogers, Arkansas by a man named Sam
Walton. Walmart helps people around the world save money and live better
-- anytime and anywhere -- in retail stores and online. Each week, more than
245 million customers and members visit the nearly 11,000 stores under 71
banners in 27 countries and e-commerce websites in 10 countries. With fiscal
year 2014 sales of approximately $473 billion, Walmart employs 2.2 million
associates worldwide.

WALMART BACKGROUND

Largest Retail holding company in the world

The leading company in retail and among several of

the larger online companies
245 million people visit Walmart, whether it is in the store
or online

Walmart employs 2.2 million associates worldwide.

WALMART SERVICES
Clothing, Shoes & Jewelry
Pharmacy, Health & Beauty
Toys & Video Games
Food, Household & Pets
Electronics, Movies, Music & Books
Auto & Home Improvement
Sports, Fitness & Outdoors

WALMART HISTORICAL DATA

Year
2014
2011
Liquidity Ratios
Current Ratio

88%

Quick Ratio
Cash Ratio
13%

2013

24%
10%

11%

2012

83%

88%

89%

22%

23%

27%

11%

REVENUE GROWTH / CASH FLOW

CHARTS

WALMART DIVIDEN GROWTH

WHY
WALMART

Walmart has a greater revenue to assets ratio

Unlimited potential to have what their customers
need for a great low price
Increasing percentages and profits
Abundance of inventory in stock to please their
customers

REFERENCES
Nasdaq WMT company financials. (2014). Retrieved from
http://www.nasdaq.com/symbol/wmt/financials?query=ratios
The History of Walmart. (2014). Retrieved from
http://corporate.walmart.com/our-story/history/