Wal - Mart Analysis ACC 205 Financial Statement Analysis Write a detailed financial statement analysis of Wal - Mart Stores Inc. for the years 2010, 2011, and 2012, covering the following areas: 1. Company Overview : Provide a brief overview of Wal - Mart, including its industry, products or services, and main competitors. (1 - 2 paragraphs) 2. Horizontal Analysis : Perform a three - year horizontal analysis of the income statement and balance sheet. Discuss the trends, both positive and negative, based on your analysis. 3. Ratio Analysis : Calculate and interpret the current ratio, quick ratio, and cash to current liabilities ratio for the two most recent years. Discuss any liquidity issues and compare the results to competitors in the same industry. 4. Recommendation : Based on your analysis, would you recommend investing in Wal - Mart? Discuss the strengths and risks of the company, providing a well - supported recommendation. Your paper should be between 1500 - 1700 words, formatted according to APA style as outlined in the Ashford Writing Center. You must use at least two scholarly sources in addition to your textbook. Financial Statement Analysis of Wal - Mart Stores Inc.: A Comprehensive Review of Financial Health and Investment Recommendation Write a five - to seven - page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions. Your paper needs to include a minimum of two scholarly resources in addition to the textbook as references. Company Overview Provide a brief overview of your company (one to two paragraphs at most). What industry is it in? What are its main products or services? Who are its competitors? Horizontal Analysis of Income Statement and Balance Sheet Prepare a three - year horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company. Ratio Analysis Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two - year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Discuss liquidity issues of competitive companies within the same industry. Recommendation Based on your analysis would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position. Financial Analysis of Wal - Mart Abstract The purpose is to present the financial analysis of Wal - Mart Stores Inc. To analyze the financial position data for the year ended Jan 2012 and Jan 2011 has been used. For this purpose the horizontal and ratio analysis techniques have been used. Company Overview