Walmart cash flow PDF

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One of Wal-Mart's key objectives is a financial one. To deliver results and operate with discipline. In Wal-Mart's annual report summery, a lot of emphasis is put on Wal-Mart's revenue performance which is on the income statement. As well as Cash-flow performance but more specifically; the record operating cash-flow of its 44th year of annual dividend increases to share holders. The Statement of Cash flow shows the cash inflow from the previous year and the cash outflow from the current year. In the case of Wal-Mart; the fiscal year begins from February 1st to January 31st. The increase and decrease of current cash balance is called cash flow. It consist of three main categories. These are Cash from operating Activities (CFOA), Cash from Investing Activities (CFIA), and Cash from Financing Activities (CFFA). Wal-Mart uses the US Dollar as its reporting currency and most of its business activities are in the US but also has international business outside of the US. When different currency are in use, there can be an effect on their exchange rates on the cash balance on the balance sheet. In 2017 Wal-Mart started the year with $8,7 billion in cash equivalents and ended the year with $6.9 billion. Therefore the net cash outflow was $1.8 billion. The factors that attribute to this net Cash outflow are as follows.  Cash from operating Activities (CFOA) $31.5B  Cash from Investing Activities (CFIA), ($14B)  Cash from Financing Activities (CFFA) ($18.9B)  Effects of exchange rate on cash bal ($0.4B) Wal-Mart received a large cash inflow from operating activities. They then returned most of that income to share holders as represented in the Cash from financing activities line. While at the same time, investing in the future of the business as represented in the cash from investing activities line. Each of these line activities have a very unique impact of the Statement of Cash Flow. The first line which is the Cash from operating Activities is the cash Inflow from customers paying the company minus the cash paid to suppliers, minus the cash paid to employees, and minus cash paid to governmental taxes. 2017 was an exceptional year for this Line activity due to the fact that compared to

previous years, this year was seeing a lot of positive earnings. For example; Inventory for 2015 and 2016 were ($1,229B) and ($703B) respectively. For 2017 inventory was 1,021B. If inventory goes down then cash goes up; hence the positive on this line item to signify a source of cash. The effects of accounts payable is even larger. When you purchase goods from suppliers then you receive invoices from those suppliers, and if you have not paid those invoices by the end of the period they will be reported as accounts payable on the balance sheet. If accounts payable goes up then cash goes up. Therefore it is a positive line item for cash flow. The ending amounts for these 2015, 2016 and 2017 were $2,678B, $2,008B and $3942B respectively. In summery; Wal-Mart highlights its $31.5B of Operating cash flow in fiscal year 2017 as a major achievement in its business. The second line item which is Cash from Investing Activities which had an Net cash outflow of $14B consist of mainly of cash outflow of payments from property and equipment and cash inflow from proceeds from Capital expenditure, and the disposal of certain operations. Wal-Mart has four main types of Capital expenses. These are "New stores and clubs", "Remodels and customer initiatives", "Ecommerce and technology", and "Logistics, maintenance." New stores and clubs were the largest capital spending in 2015 with $12.2B and is the smallest in 2018 with $11B. Most of the Capital expense will go to Remodel and customer initiatives, Logistics and maintenance, and E-commerce and technology. In other words; there were lower overall capital spending and an reallocation of the spending in the line with new strategic priorities. In 2017 Wal-Mart also acquired a US bases E-commerce company called Jet.com for a total purchase price of $2.4B which increased this line activity significantly. The third line Activity which is Cash from Financing Activities had a net cash outflow of $18.9B in 2017. The largest line item that attributed to that amount was an $8.9B from purchase of Company stock. This amount was well over the amounts from previous years [($8.9B), ($4,112B) and ($1,015) to years 2017, 2016 and 2015 respectively). Another line item that attributed to this was the payment of

long-term debt which allocated ($2,055B) towards the Net cash used in financing activities. This reduced the amount of long term debt on the balance sheet by $36B....