Unit 9 Assignment: Comprehensive Financial Analysis
In this assignment, you will be assessed based on the following outcomes:
MT482-6: Determine the value of a company through conducting effective earnings forecasts and
analysis.
GEL-1.02: Demonstrate college-level communication through the composition of original materials
in Standard English.
This is a challenging activity. You should prepare to spend substantial time working on your
response.
In this research paper, you will dig deep into the financial statements of Walmart. You will analyze
the company’s past financial performance to help you forecast their future business, profitability,
and cash flow. You will use these results to forecast the value of the company; what YOU think the
company is actually worth today. You will compare your value to the current stock price, explaining
any differences.
This is how decisions to buy and sell stock, and to buy and sell companies are made every day all
over the world. The nightly business news is full of the “buy, sell, and hold” recommendations
derived from analysis like this. I bet those jobs pay very nicely, don’t you!
Your paper must include the following criteria in addition to a title and references page:
● Executive Summary: This is a 1-page summary of the entire paper that highlights the key
results of your analysis and the resulting conclusions, and a summary of their defense.
● Table of Contents: List of the sections in your paper.
● Introduction: The company’s story- past, present, future. Include who they are (include
current events and interesting facts), what do they do (products), when they began (how
long), and where they do business. Discuss the markets they operate in globally, the current
market trends, and their competitors. (This should be at least 2- pages, likely more.)
● Financial History: (3-year analysis of the company’s performance. Your report will include
the ratio results plus an explanation and analysis of each ratio. Include the ratio, its results,
and what the results mean for the company. (Liquidity and Debt, Asset Management,
Profitability, and Market ratios. See ratio detail below.) Were there changes in the ratios?
What could have caused the change? You must include an evaluation section of what each
type of (LAPM) ratio means over the three years, then an overall comparison to validate
your conclusion. (Show you understand and know the ratios.)
● Financials Today: Current year with comparison to a competitor. What are they doing?
How are they doing now? Add current events and focus on the current financials. Include an
evaluation for each type of (LAPM) ratio for the current year, then an overall comparison to
validate your conclusion. Include your findings for your competitor.
● Financial Future: The story behind your analysis of your forecast of the future based on
your spreadsheet. Why did you choose the specific growth rates? What impact did they
have on the value of Walmart? Use the Walmart Proforma Income Excel spreadsheet
located in Course Documents.
Unit 9 [MT482]
Page 2 of 4
● Conclusion: Your recommendation with justification of how much Walmart is worth. How
much do you forecast each share to be worth? Defend your choice.
Required Ratio Analyses
Liquidity and Debt Ratios (L)
• Current
• Quick
• Total Debt to Total Asset
Asset Management Ratios (Activity A)
• Inventory Turnover
• Fixed Asset Turnover
• Total Asset Turnover
Profitability Ratios (P)
• Profit Margin on Sales
• Return on Assets
• Return on Equity
Market Value Ratios (M)
• Price Earnings Ratio
• Market/Book
Start your Walmart research at the website below. Click on everything and explore. This website
will be the sole source of financial information for this assignment.
Walmart, Inc. (n.d.). Retrieved from https://www.msn.com/en-us/money/stockdetails/financials/fi126.1.WMT.NYS
This assignment requires the following in addition to the criteria above:
● Submit your paper in a Microsoft Word® document. Include a title page with your name, course
number, instructor name, date, subject, and include a brief statement that you (and you alone)
produced the paper. Further format details will be provided by your instructor.
● Submit your completed Walmart Proforma Income spreadsheet to the Dropbox.
● Respond to the questions in a thorough manner, providing specific examples of concepts,
topics, definitions, and other elements asked for in the questions. Your paper should be highly
organized, logical, and focused.
● Your paper must be written in Standard English and demonstrate exceptional content,
organization, style, and grammar and mechanics.
● Your paper should provide a clearly established and sustained viewpoint and purpose.
● Your writing should be well ordered, logical and unified, as well as original and insightful.
● A separate page at the end of your research paper should contain a list of references, in current
APA style. Use your textbook, the Library, and the internet for research.
● Be sure to cite in-text citations were appropriate and reference all sources. Your sources and
content should follow proper current APA style. Review the APA formats found in the Writing
Center accessed through the Academic Success Center within the Academic Tools area of the
course. (Your paper should include a title page, paper is double-spaced, in Times New Roman
Unit 9 [MT482]
Page 3 of 4
12-point font, correct citations, Standard English with no spelling or punctuation errors, and
correct references on the references page.)
● Clear business writing; spelling and grammar acceptable; effective use of current APA style;
followed the required format and instructions.
● Include the elements detailed in the rubric below.
Directions for Submitting Your Assignment
● Compose your paper in a Microsoft Word document and save it as Username- MT482
Assignment-Unit 9.docx (Example: TAllen- MT482 Assignment Unit 9.docx). Submit your
document to the Unit 9 Assignment Dropbox by the end of the unit.
● Submit your Microsoft Excel file as a separate submission by selecting the Unit 9 Assignment
Dropbox by the end of the unit.
Unit 9 Assignment: Comprehensive Financial Analysis Points
Possible
Points
Earned
Content, Analysis, and Effective Writing Skills
Executive Summary: Provided a 1- page summary of the paper that
highlights the key results of your analysis and the resulting conclusions
and a summary of their defense.
10
Table of Contents: Lists the sections in the paper and page numbers. 5
Introduction: Provided a minimum 2- page history of Walmart: who they
are, where they are, and what do they do. Detailed the markets they
serve globally, the current market trends they face, and the nature of
their competitors.
20
Financial History: Detailed evaluation and analysis for a 3-year history:
Included charts of the ratios reviewed using the format in the provided
spreadsheet. Included a written analysis of the ratios that have been
calculated including a detailed description of the meaning and uses of
each ratio.
10
Correct calculation of the specific ratios required:
Liquidity and Debt Ratios (L) 5
Asset Management Ratios (Activity) (A) 5
Profitability Ratios (P) 5
Market Ratios (M) 5
Financials Today: Included detailed financial analysis of the current
year of the company and the industry or a key competitor comparing and
contrasting the results of the company versus the industry or competitor.
10
Correct calculation of the specific ratios required:
Liquidity and Debt Ratios (L) 5
Asset Management Ratios (Activity) (A) 5
Profitability Ratios (P) 5
Market Ratios (M) 5
Unit 9 [MT482]
Page 4 of 4
Unit 9 Assignment: Comprehensive Financial Analysis Points
Possible
Points
Earned
Financial Future: Prepared a forecast of the income statement for a 5-
year horizon and a terminal value using the Excel spreadsheet provided
in Course Documents. Analysis that determined the various growth rates
required, the terminal value multiplier (PE Ratio), the cost of capital, and
the current number of shares outstanding.
15
Conclusion: Prepared a thorough defense of the estimated value of the
company’s common stock per share using the valuation analysis and
procedures provided in the Excel spreadsheet. Explained the financial
future of Walmart and suggested actions they might take to improve or
ensure the predictions.
15
Exhibited strong critical thinking and appropriate analysis throughout the
paper. 10
Sentences are clear, concise, and direct; tone is appropriate.
Grammatical skills are strong with almost no errors per page. Paper
includes a clearly established and sustained viewpoint and purpose,
written in Standard English and demonstrates exceptional content,
organization, style, and mechanics. Paper follows current APA style, and
follows the criteria given in the paper. Including all content this paper
should approach 20- pages.
10
Total Points

Format of the Walmart Research Paper
In this research paper, you will dig deep into the financial statements of Walmart. You
will analyze the company’s past financial performance to help you forecast their future
business, profitability, and cash flow. You will use these results to forecast the value of
the company; what YOU think the company is actually worth today. You will compare
your value to the current stock price, explaining any differences.
This is how decisions to buy and sell stock, and to buy and sell companies are made
every day all over the world. The nightly business news is full of the “buy, sell, and hold”
recommendations derived from analysis like this. I bet those jobs pay very nicely, don’t
you!
Your paper must include the following criteria in addition to a title and references page:
Executive Summary: This is a 1-page summary of the entire paper that highlights the
key results of your analysis and the resulting conclusions, and a summary of their
defense.
Table of Contents: List of the sections in your paper.
Introduction: The company’s story- past, present, future. Include who they are (include
current events and interesting facts), what do they do (products), when they began (how
long), and where they do business. Discuss the markets they operate in globally, the
current market trends, and their competitors. (This should be at least 2- pages, likely
more.)
Financial History: (3-year analysis of the company’s performance. Your report will
include the ratio results plus an explanation and analysis of each ratio. Include the ratio,
its results, and what the results mean for the company. (Liquidity and Debt, Asset
Management, Profitability, and Market ratios. See ratio detail below.) Were there
changes in the ratios? What could have caused the change? You must include an
evaluation section of what each type of (LAPM) ratio means over the three years, then
an overall comparison to validate your conclusion. (Show you understand and know the
ratios.)
Liquidity & Debt
Ratios
2018 2017 2016
Current xxx xxx xxx
Quick xxx xxx xxx
Total Debt to Total
Assets
xxx xxx xxx
After each LAPM box you will include your words regarding the ratios in that box. Focus
on demonstrating your understanding of what the individual ratio means and your
assessment of Walmart’s financial conditions based on the results. The paper should
include an individual evaluation section for each ratio, over the three years, and an
overall comparison to validate your conclusion of Walmart’s financial condition.
Asset Management
Ratios
2018 2017 2016
Inventory Turnover xxx xxx xxx
Fixed Asset Turnover xxx xxx xxx
Total Asset Turnover xxx xxx xxx
Here you should include an individual evaluation section for each ratio (over the three
years) then an overall comparison to validate your conclusion. Show you know and
understand the ratios.
Profit Ratios 2018 2017 2016
Profit Margin on
Sales
xxx xxx xxx
Return on Assets xxx xxx xxx
Return on Equity xxx xxx xxx
Here you should include an individual evaluation section for each ratio (over the three
years) then an overall comparison to validate your conclusion. Show you know and
understand the ratios.
Market Ratios 2018 2017 2016
Price Earnings Ratio
(PE)
xxx xxx xxx
Market to Book xxx xxx xxx
Here you should include an individual evaluation section for each ratio (over the three
years) then an overall comparison to validate your conclusion. Show you know and
understand the ratios.
Financials Today Current year with comparison to a competitor. What are they doing?
How are they doing now? Add current events and focus on the current financials.
Include an evaluation for each type of (LAPM) ratio for the current year, then an overall
comparison to validate your conclusion. Include your findings for your competitor.
Liquidity & Debt Ratios 2019 Competition or Industry
Current xxx xxx
Quick xxx xxx
Total Debt to Total Assets xxx xxx
Here you should include an individual evaluation section for each ratio with a reflection
on this year’s comparison to past years. Also, include a comparison to the results of the
competitor you chose or the industry averages. Then, an overall comparison to validate
your conclusion.
Asset Management Ratios 2019 Competition or Industry
Inventory Turnover xxx xxx
Fixed Asset Turnover xxx xxx
Total Asset Turnover xxx xxx
Here you should include an individual evaluation section for each ratio with a reflection
on this year’s comparison to past years. Also, include a comparison to the results of the
competitor you chose or the industry averages. Then, an overall comparison to validate
your conclusion.
Profit Ratios 2019 Competition or Industry
Profit Margin on Sales xxx xxx
Return on Assets xxx xxx
Return on Equity xxx xxx
Here you should include an individual evaluation section for each ratio with a reflection
on this year’s comparison to past years. Also, include a comparison to the results of the
competitor you chose or the industry averages. Then, an overall comparison to validate
your conclusion.
Market Ratios 2019 Competition or Industry
Price Earnings Ratio (PE) xxx xxx
Market to Book xxx xxx
Here you should include an individual evaluation section for each ratio with a reflection
on this year’s comparison to past years. Also, include a comparison to the results of the
competitor you chose or the industry averages. Then, an overall comparison to validate
your conclusion.
Financial Future The story behind your analysis of 5-year proforma forecast of the
income statement for Walmart based on the spreadsheet. Your analysis will include why
you chose the specific rate changes you did in your version of the spreadsheet. You will
also provide an analysis of the impact your assumptions had on the value of Walmart.
You must submit YOUR completed spreadsheet. Do not attach it to the paper or copy
paste it into the paper. Submit it separately in the same Dropbox as you submit the
paper.
Conclusion In this section include your summary of your findings based on your
complete analysis plus your analysis, with justification, of how much you think Walmart’s
stock is worth today. Defend your analysis contrasting it to the actual price of Walmart’s
stock today, and make a recommendation as to whether investors should or should not
buy Walmart stock. Defend that recommendation.
References
Start your Walmart research at the website below. Click on everything and explore. This
website will be the sole source of financial information for this assignment.
Walmart, Inc. (n.d.). Retrieved from https://www.msn.com/enus/money/stockdetails/financials/fi-126.1.WMT.NYS