EVALUATING AN ANNUAL REPORT ON WALMART FINAL PROJECT. CLASS FIN 200

2. Final Project: Evaluating an Annual Report
• Resources: Appendix A
• Due Date: Day 7 [Individual forum]
• Review Appendix A for details to include in your analysis of your chosen company’s
financial health.
• Prepare a 1,750- to 2,100-word paper, formatted according to APA guidelines, that
includes performance ratios based on the company's last two annual reports and data
available on the company's Web site.
o Compute the eight ratios listed below for two consecutive years. Discuss their
significance for management and compare them to industry averages.
• Current Ratio
• Quick Ratio
• Inventory Turnover Ratio (Note: on the Dunn and Bradstreet Web site this ratio is
labeled Sales to Inventory)
FIN 200 Introduction to Finance: Harvesting the Money Tree
Course Syllabus Page 21
abeled Sales to Inventory)
FIN 200 Introduction to Finance: Harvesting the Money Tree
Course Syllabus Page 21
• Debt Ratio (Note: on the Dunn and Bradstreet Web site this ratio is labeled Total
Liabilities to Net Worth)
• Net Profit Margin Ratio (Note: on the Dunn and Bradstreet Web site this ratio is
labeled Return on Sales)
• ROI (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on
Assets)
• ROE (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on
Net)
• Price-to-Earnings Ratio (P/E) Ratio
o Analyze the company's working capital management. Explain why the companyÂ’s
operating and cash cycles are currently optimized. If you think they are not optimized,
explain why.
o Based on the companyÂ’s financial statements, list the long-term debt held by the
corporation, maturity dates and yield to maturity. List the types of stock issued by the
company, the stocksÂ’ current selling price, and the 52-week average selling price.
o Compute the weighted average cost of capital (WACC) for both years and discuss
your findings.
o Write a brief analysis that summarizes the data youÂ’ve gathered throughout the
weeks and evaluates how your company compares to industry averages.
o Write your recommendations on whether as an investor you should buy this
company's stock and why.