Financial statement analysis essay assignment
Order ID |
53563633773 |
Type |
Essay |
Writer Level |
Masters |
Style |
APA |
Sources/References |
4 |
Perfect Number of Pages to Order |
5-10 Pages |
Description/Paper Instructions
Course Project
Alicia Younes
South University-Online
Financial statement analysis
FIN4060
07/26/2021
Introduction
Alibaba and Walmart are well-established e-commerce retail companies that operate globally. Alibaba is well known for the high consistency and value of its products while Walmart for high sales. These two companies have stable financial status because of their high global reputation. The paper analyzes the income and balance sheet statements of Walmart and Alibaba.
Income Statement items
One important income statement item for investors is the sales or revenue. This represents the income generated from an organization’s operations before deducting the expenses. Revenue would be important for an investor as it helps assess the growth of a company. (Hasanaj & Kuqi, 2019). Walmart has high revenue and reports increasing and stable revenue. In FY 2021, it reported revenue of $559,551M a 6.72% increase from 2020 ($523,964M). Alibaba reported sales of $109, 480M in FY 2021, a 52.09% rise from 2020 ($71.985B). Both Walmart and Alibaba have been reporting increasing revenue; however, Alibaba has high revenue increase than Walmart. Besides, Walmart reports high revenue compared to Alibaba.
The second important item is the net income. It indicates the amount of profit a company made after paying off all its expenses. It is the amount available to pay dividends, reinvest and repurchase shares. Walmart reported a net income of $13.51B in FY 2020, a 9.21% decrease from 2020 ($14.881B). Alibaba reported Net Income of $22.941B, an 8.83% increase from 2020 ($21.08B). Alibaba reports a high net income compared to Walmart. Besides, Alibaba has stable and increasing Net income, unlike Walmart.
The third item is operating income which would be important for investors as it is an indirect measure of efficiency (Hasanaj & Kuqi, 2019). Walmart reported an operating income of $22.548B, a rise of 9.63% from $20.568B (2020). Alibaba, on the other hand, reported a 13.688B, an increase of 5.35% from $12.993B. Walmart reports high operating income than Alibaba. Besides, Walmarts operating income is more stable and predictable compared to Alibaba.
Balance Sheet items
The first balance sheet item is current assets. They are important because they help finance the operational expenses of a company, therefore, an indicator of liquidity (Dauderies & Annand, 2019). Walmart reported a CA of $90,067M in FY 2021, an increase from $61,806M. Alibaba, on the other hand, reported $ 98,196M, an increase from $65,377M. Alibaba has high and increasing current assets than Walmart to finance short-term obligations.
The second item is current liabilities which is important as they provide useful information about the financial state of the company to an investor. Walmart reported current liabilities of $ 92,645M in 2021, an increase from $77,790M. Alibaba had current liabilities of $57,596M in FY 2021, an increase from $35,916M. Although both companies have increasing current liabilities, Walmart reports high current liabilities than Alibaba.
The third item is cash and cash equivalent. They are important because they help the company finance working capital needs (Dauderies & Annand, 2019). Walmart reported a value of $17,741M in FY 2021, an increase from $9,465M. Alibaba, on the other hand, had $73,788M in FY 2021, an increase from $55,437M. Both companies have increasing cash and cash equivalents; however, Alibaba reports a high value compared to Walmart.
Analysis based on the income statement and balance sheet
Based on the income statement, Walmart has high revenue and operating income compared to Alibaba, while Alibaba has high Net income than Walmart. Generally, the nature of the income statement of the two companies is good; however, Walmart can be considered much better than Alibaba. According to the balance sheet, Alibaba reports high cash and cash equivalents, high current assets, and low current liabilities than Walmart. The financial state of Alibaba based on a balance sheet is better than Walmart
RUBRIC
QUALITY OF RESPONSE |
NO RESPONSE |
POOR / UNSATISFACTORY |
SATISFACTORY |
GOOD |
EXCELLENT |
Content (worth a maximum of 50% of the total points) |
Zero points: Student failed to submit the final paper. |
20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. |
30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. |
40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. |
50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. |
Use of Sources (worth a maximum of 20% of the total points). |
Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. |
5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. |
10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. |
15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. |
20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. |
Grammar (worth maximum of 20% of total points) |
Zero points: Student failed to submit the final paper. |
5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors |
10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors |
15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. |
20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. |
Structure of the Paper (worth 10% of total points) |
Zero points: Student failed to submit the final paper. |
3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. |
5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper |
7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. |
10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. |
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