Mba 630 Final
Autor: msorebankole • October 18, 2015 • Coursework • 619 Words (3 Pages) • 998 Views
MIL $ | 2015 | 2014 | 2013 |
Revenue | 485,651 | 476,294 | 468,651 |
Gross Profit | 120,565 | 118,225 | 116,354 |
SG&A Expense | 93,418 | 91,353 | 88,629 |
Operating Income | 27,147 | 26,872 | 27,725 |
Net Income | 16,363 | 16,022 | 16,999 |
Walmart Income Statement Summary
% | 2015 | 2014 | 2013 |
Revenue | 2% | 1.6% | 5% |
Gross Profit | 24.3% | 24.3% | 24.3% |
SG&A Expense | 19.4% | 19.3% | 19% |
Operating Income | |||
Net Income |
Question 1: What 3 items of important information does the income statement reveal about the financial performance of the company over the last three years?
Revenue: Should be growing over time: According to the Walmart SEC Reporting their growth has been in fact growing as it has increased 17M from 2013 to 2015.
Gross Profit: Should be a stable % of Sales Revenue. The gross Profit for Walmart has in fact been stable remaining at 24.3% from 2013 through 2015.
SG&A Expense: Should be a stable % of Sales Revenue. The SG&A for Walmart ha been relatively stable, but the SEC filing reveals there has been a slight increase each year.
Conclusion: These three important pieces of information reveals that Walmart is financially a little shaky. From 2013 to 2014 they lost $977,000, but then improved by increasing revenue by $340,778 from 2014 to 2015. Their operating income also took a dive during 2014. But managed to slightly recuperate in 2015. Despite the up and downs of their income statements, Walmart manages to remain relatively stable.
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