The analysis of the income statement of Wal-Mart has been done in this section so as to critically analyse the financials of the company. As can be seen, from Figure 1, the revenue generated through sales in 2008 was $378,799 billion, in 2009 it crossed $400 billion and the growth continued till 2012, so the revenue of Wal-Mart in 2012 was $446,950 billion. The revenue generated by the company in the last five years of its operations shows that the company has managed to have a steady increase in its revenues. It also reveals that during recession too the company has been able to generate profits and has been able to utilize its resources well to generate higher revenues. Similarly, the operating income also shows an upward trend from 2008, as it was $21,996 million to 27,602 million in 2012.
The net income in the year 2008 was around $12,731 million while in 2011 it increased to $16,454 million. However, again the net income decreased to $15,699 million has been seen in 2012. It can be seen from Appendix 2 that the percentage increase in revenue in the year 2008 was the highest that is 8.4 percent, which further diminished in 2009 to 7.3 percent; while in 2010, a considerable decrease in net sales percent shows the effect of recession on Wal-Mart. As can be seen from Appendix 2, the inventories in 2012 have increased to $40,714 than the other four years. In 2010 it was around $32,713, which was the lowest in five years. This shows that the current assets have increased, but the cash equivalent assets were decreasing. The increasing trend of shareholder’s equity reveals that the debt of the company has decreased with years. In 2012 the shareholder’s equity is $71315 million, which was $68,542 million in 2011 and $64,969 in 2009. The number of units count as stated in Appendix 2 reveals that the international segment of Wal-Mart that is Wal-Mart doing business outside US has sold more than the US segment in 2012, the US segment sold 3,868 units, while the international segments sold 5,651units.
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