Case Study: Financial Statements for Walmart Stores Inc. and Macy's Inc.
The table below contains the financial results for Walmart and Macy's.
1. Evaluate the financial performance of each company based on various metrics such as ROE, ROA, profit margin, asset turns, APT, C2C, ART, INVT, and PPET.
2. Can you explain the differences you see in their performance based on their supply chain strategy and structure?
3. Which metrics does each company perform better on? What supply chain drivers and metrics might explain this difference in performance?
|
Year end ($ millions)
|
Walmart
|
Macy's
|
|
|
Net operating revenues
|
469.162
|
27,686
|
|
|
Cost of goods sold
|
352,488
|
16,538
|
|
|
Gross profit
|
116,674
|
11,148
|
|
|
Selling, general, and administrative expense
|
88,873
|
8,482
|
|
|
Operating income
|
27,801
|
2,661
|
|
|
Interest expense
|
2.251
|
425
|
|
|
Other income (loss)-net
|
187
|
(134)
|
|
|
Income before income taxes
|
25,737
|
2.102
|
|
|
Income taxes
|
7,981
|
767
|
|
|
Net income
|
17.756
|
1,198
|
|
|
Assets
|
|
|
|
|
Cash and cash equivalents
|
7,781
|
1,836
|
|
|
Net receivables
|
6,768
|
371
|
|
|
Inventories
|
43.803
|
5,308
|
|
|
Total current assets
|
59,940
|
7,876
|
|
|
Property, plant, and equipment
|
116,681
|
8,196
|
|
|
Goodwill
|
20,497
|
3,743
|
|
|
Other assets
|
5,987
|
615
|
|
|
Total assets
|
203,105
|
20,991
|
|
|
Liabilities and Stockholder Equity
|
|
|
|
|
Accounts payable
|
59,099
|
4.951
|
|
|
Short-term debt
|
12,719
|
124
|
|
|
Total current liability
|
71,818
|
5,075
|
|
|
Long-term debt
|
41,417
|
6.806
|
|
|
Total liabilities
|
126.243
|
14,940
|
|
|
Stockholder equity
|
|
|
76,343
|
6,051
|
|