Wal-Mart is a great investment and looking at its recent annual report it has maintained its market share in almost all outlets. Its net assets increased to $198,825,000 excluding the effects of the current exchange rate, and acquisitions, and the total current assets 57,689,000. The company has added many stores in different countries leading to a total of 11,000 stores in 28 countries. Wal-Mart has also maintained the market share in most countries even with the challenging macroeconomic environment and fluctuations in the currency exchange rate. The competition is high due to the stretched household incomes. Total current liabilities was 66, 928,000 and total liabilities 121,027,000 which is an increase when compared with the previous year. In 2016 total liabilities decreased from 2015. The company provides an additional opportunity to the investors and return capital to the shareholders through the short-term investments and the dividend yield of over$10 billion (Stock analysis on the net). Through these capital gains and dividend payments, the shareholders and investors are assured of growth in the company.
Total equity 77, 798,000 in the fiscal year 2017 and $6.8m in 2014: the company recorded a decline from the previous year which also recorded a decline from 2015 (stock analysis on the net). A decline in equity may affect the shareholder’s equity and also the profitability of the company. However, Wal-Mart Stores Inc. has had a high return for its shareholders through share repurchases and dividends and its operating at less than 5% net margin annually which is challenging. The intelligent capital management through reinvestment gives back to the shareholders and also attracts investors.
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Although the company has been lagging the S & P 500 for the past few years, it still attracts investors because of its stability. Wal-Mart has had growth in its earnings for the past seven years and still projects to maintain the growth for the next years. Wal-Mart is a great investment and is recommendable to anyone.
References
Stock analysis on net. Wal-Mart Stores Inc. (WMT). Retrieved from https://www.stock-analysis-on.net/NYSE/Company/Wal-Mart-Stores-Inc/Financial-Statement/Liabilities-and-Stockholders-Equity
