As most of us know, Walmart is one of the top retail chains in the U.S. and it’s currently expanding overseas as well. The history of Walmart can be dated back to 1962 when Sam Walton opened the very first ‘Wal-Mart Discount City’ in Arkansas. There were 24 stores with sales totaling $12.7 million by 1967, and Walmart officially became a corporation by 1969. In the 70’s Walmart became a publicly traded company as well as making it onto the New York Stock Exchange. The 80’s showed a ‘Decade of Firsts’ for the corporation. The first Walmart Supercenter opened and they hit their first $1 billion in annual sales, which was faster than any other company during that time. Walmart became known as ‘America’s Top Retailer’ in the 90’s all the while seeking out even bigger venues. They went international venturing into Mexico, Canada, China, and the United Kingdom. During the 90’s they also hit a $1 billion sales week as well as a $100 billion sales year.
The ‘New Millennium’ found Walmart at the top of the Fortune 500 rankings of America’s largest companies they introduced the U.S. shoppers to Walmart.com. The company also reached $400 billion in annual sales during this time. In 2012, Walmart celebrated its 50th anniversary. Today there are over 11,000 retail units in 27 countries and 2.2 million employees around the world. Along with doing so well in sales, Walmart is dedicated to helping the environment. They are striving to use 100% renewable energy resources, reducing greenhouse gas emissions, and preserving natural wildlife. They are doing things like this by using solar and wind power, filling trucks just a little more to reduce miles driven, finding newer and better ways of recycling products while reducing the waste, and for every acre they develop they purchase an acre of wildlife land to preserve.
The company also has goals of hiring so many military veterans as well as boosting the diversity of associates from women to people of different ethnicities. (Paragraph summarized from Walmart.com – Corporate, 2014) Walmart sells everything one could possibly need to stock an apartment. Things like food, clothes, shoes, home goods, health and beauty supplies, cleaning items, and outdoor equipment are just to name a few. Their main competitors are stores like Target and K-mart.
Horizontal Analysis of Income Statement and Balance Sheet
A horizontal analysis can be important because it can be used to compare a company’s financial data, side-by-side, for two or more accounting cycles (Bridgepoint Edu, 2012, chap 9.1, para 6). It allows us to see changing patterns or trends in a company’s income as well as monitoring these changes closely. In the horizontal analysis of the Income Statement, the only real positive I noticed was the revenue continued to grow from year to year; however, it only increased 1.6% from 2013 to 2014. The horizontal analysis of the Balance sheet showed an increase in total assets, but the biggest increase was between 2012 and 2013.