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Comparative Analysis: Amazon.com, Inc. vs. Wal-Mart Stores, Inc.Wendy MylesACC/290October 2, 2017Professor Dan Jensen
Wal-Mart Stores, Inc. and Amazon.com, Inc. are two of the largest retail outlets in the world. One difference in Wal-Mart and Amazon is that Wal-Mart has brick and mortar stores where Amazon is online shopping only. Wal-Mart does offer online shopping with the option to pick up in the store or have it shipped to the consumer but has considerably less online items than Amazon. According to Peterson from Business Insider, Wal-Mart offers 4.2 million differentproducts and Amazon offers an amazing 250 million products. In most people’s past experiences with the two, if someone is looking for something that is not a usual purchase, their best option may be to purchase from Amazon. Wal-Mart FinancialsAccording to the 2015 Annual Report (Kimmel, Kieso, & Weygandt, 2015), the total revenues for Wal-Mart for 2015 were $485,651(Kimmel, Kieso, & Weygandt, 2015, Appendix E). The inventories for 2015 was $45,141 and the inventory for 2014 was $44,858 (Kimmel, Kieso, & Weygandt, 2015, Appendix E). The cost of goods sold was $365,086 for 2015. According to Kimmel, Kieso, & Weygandt, Wal-Mart values their inventory at the lower of cost or market and uses the last-in, first-out (LIFO) method for its accounting practices. Wal-Mart had an average inventory for the year’s 2014 and 2015 of 45,000. To obtain the average inventory, the inventory totals are added together for the two years and then divided by two to get the average. The inventory turnover was 8.11 for Wal-Mart. To calculate the inventory turnover, the cost of goods sold are divided by the average inventory. The number of days of inventory will be 365, which is the number of days in a company’s fiscal year. The number of days in inventory for Wal-Mart was 45 days. To calculate the number of days in inventory, the number of days (365) will be divided by the inventory turnover.

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