
Compare five-year P&L and year-over-year growth for Amazon and Wal-Mart, and compute profitability, liquidity, and efficiency ratios. Use 10-K highlights and segment net sales to assess performance with a scorecard.
Calculate the receivables turnover ratio from net sales divided by average accounts receivable to gauge collection efficiency. Amazon yields about 15, while Walmart yields about 83.39, indicating Walmart collects faster.
Wal-Mart shows a slight advantage in inventory turnover ratio and a higher asset turnover ratio, while Amazon leads in receivables turnover ratio.
Compute the debt to equity ratio to assess financial leverage and risk. Amazon shows about 1.2x debt to equity, while Walmart sits near 1.0x, indicating higher leverage for Amazon.
Calculate and compare the interest coverage ratio for Amazon and Walmart using EBIT and interest expense, showing Amazon at 9.2x and Walmart at 8.7x.
Compare the debt-to-equity and interest coverage ratios for Amazon and Walmart, noting Walmart's lower leverage and Amazon's higher interest coverage, ending in a draw on capital structure.
Explore earnings per share (EPS) concepts, including basic and diluted EPS, by calculating net income divided by weighted average shares for Amazon and Walmart, and compare their profitability per share.
What Makes this Course Different?
1) Learn through examples
We will utilize Amazon & Walmart’s Financial Information to ‘Learn through examples’
2) Scorecard
We will maintain a ‘Scorecard’ of Amazon and Walmart’s performance throughout our Analysis
3) Gain Insights
We will ‘Gain Insights’ into the Financial Performance of Amazon versus Walmart
In this course, we will cover the following topics:
A) Financial & Trending Analysis:
5-year P&L Comparison
Year-over-Year P&L Analysis
B) How to calculate Financial Ratios:
Profitability Ratios
Capital Structure Ratios
Liquidity Ratios
Valuation Ratios
Efficiency Ratios
C) Go through key highlights & tables from Amazon and Walmart’s Form-10K filing