AJames-GB550 Final Project-Unit 5

AJames-GB550 Final Project-Unit 5 - UNIT 3: FINAL PROJECT...

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Unformatted text preview: UNIT 3: FINAL PROJECT ASSIGNMENT 1 Alicia James Capital Structure Analysis Wal-Mart October 4, 2011 GB550: Financial Management Unit 5 Professor Ana Machuca Abstract Wal-Mart is one of the biggest retail chains of the world. (Sampson, 2008).Hence its very extensive financial reports were studied carefully in detail in order to understand and evaluate the companys operations and performance. Recommendations to improve the overall business of the company are suggested. Since cost drivers are significantly important for HR department, identifying them and then calculating overhead rate per employee of these cost drivers was quite essential for the evaluation of current financial standing of the company. (Knack & Keefer, 1997). These were also compared to figures of competitive rivals in order to UNIT 3: FINAL PROJECT ASSIGNMENT 2 know the effectiveness of HR department and the business as a whole. Finally, after detailed scrutiny of the financial impact of the key factors, some healthy recommendations are provided that are aligned to both the needs of the business as well as best practice principles. The purpose is to show a preview of capital structure, business risks related to the capital and assumptions based on theories, evidence and implications. Every business decision is associated in one way or another with the financial conditions of the organization. The results of the analysis will assist in the determination of organizations ability to remain in a particular line of business. The most imperative areas that are found in the Capital Structure Analysis Report fall into the following categories: Working Capital Management, Valuation and Investment, and Cost of Capital. Once the financial data is collected and calculated, potential areas for improvements can be identified and corrective measures can be implemented. As in all businesses, there is always room for improvement. Table of Contents I. Abstract II. Introduction III. Working Capital Management IV. Underperforming Company Ratios V. Recommendations/Strategies VI. Cash & Marketable Securities VII. Sources and Uses of Short-term Financing VIII. Credit Policy UNIT 3: FINAL PROJECT ASSIGNMENT 3 IX. Inventory X. Valuation & Investment Section XI. Cost of Capital Section XII. Conclusion XIII. References Introduction Every business decision is associated in one way or another with the financial condition of the organization. The results of a working capital analysis will assist in the determination of the organizations ability to remain in a particular line of business. The primary focus of this analysis of Wal-Mart, Inc is its current and future financial condition. The most imperative areas that are found in the Capital Structure Analysis Report fall into the following categories: Working Capital Management, Valuation and Investment, and Cost of Capital. The companys operational processes within each area can be examined and related financial data reviewed....
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This note was uploaded on 11/08/2011 for the course BUSINESS GB550 taught by Professor Machuca during the Fall '11 term at Kaplan University.

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AJames-GB550 Final Project-Unit 5 - UNIT 3: FINAL PROJECT...

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