Organizational Stock Exchange Market
Throughout this course, you have been working on your research paper on a company you have chosen. For this assignment, you will consolidate the parts of the assignment you wrote in Units II, V, and VI. In addition, you will add a new section that comprises content you have learned in this unit.
First, combine Parts I-III of your paper. Be sure to make any changes necessary based on feedback you have received. Make sure that you include an introduction and transitions so that these three parts read as one cohesive document.
Then, you will need to examine your firm’s working capital management. Look at the firm’s annual report and answer the following questions:
- What is the firm’s cash position? Does the firm reflect positive cash balances for the last three years?
- What methods does the firm use to ensure and maintain positive cash flows?
- What methods of short-term financing does the firm use?
Conclude your paper with a final recommendation about whether or not this company would be a good investment for potential investors. Your finished paper must be a minimum of seven pages long, and you must use at least five sources (most of which were likely used in other units). At least one source must come from the CSU Online Library. Adhere to APA Style when creating citations and references for this assignment.
Walmart Inc.: Stock Exchange Market
Financial Management
Which stock market exchange is the company listed on?
Walmart is one of the world’s biggest retailers, founded in 1962 in the United States. It has more than 2,000 000 employees globally. It is currently listed on New York Stock Exchange (NYSE).
Look at the past three years’ worth of stock activity for your company.
- What is the average stock price during that period?
The stock price for 2020 =USD117.89 (Walmart Inc (WMT) stock price & news, n.d)
Stock Price for 2021 =USD 146.63
Stock Price for 2022 =USD 144.89
Average = (117.89 + 146.63 + 144.89)/3
= USD 136.47
N/B: The stock price were indicated are for the beginning of each year (2020, 2021, 2022)
- What was the high/low price?
The highest stock price was recorded in 2021. It was $146.63. The lowest price was recorded in 2020. It was $117. 89
Has the company ever initiated a stock split?
Yes, Walmart has ever initiated a stock split. The company has enacted 2-for-1 splits 11 times since it went public in 1970 at $16.50 per share (Bowman, 2017). The first stock split happened in May 1971. However, since 1999, the company has never initiated a stock split (Bowman, 2017).
How many shares of stock are outstanding? Authorized? Issued?
Walmart 2022 shares outstanding were 2.805B, a 1.48% decline from 2021. Walmart 2021 shares outstanding were 2.847B, a 0.73% decline from 2020 (Walmart shares outstanding 2010-2022: WMT, n.d). Based on the available data, the company’s authorized shares were 11 billion, while issued shares were 2.8 billion in 2020.
Would you invest in this company based on what you have evaluated? Why, or why not?
Compare this company’s stock to another company within the same industry. How does the stock compare in terms of price and activity? Explain.
Compare Walmart Company to Amazon.com. Amazon.com Inc. is listed on the NASDAQ stock exchange. At the start of 2020, Amazon.com had a stock price of $1869.80. At the beginning of 2021 and 2022, the company had a stock price of $3182.70 and $3251.08, respectively.
Based on this data, first, the stock prices at Amazon.com Inc. are higher than those at Walmart. Second, the stock price at Amazon.com increased for three consecutive years starting from 2020. On the other hand, the stock price at Walmart increased from 2020 to 2021 but declined in 2022. The demand for stock at Amazon.com is higher than Walmart’s demand. The view fact is evidenced by the increasing stock price at Amazon.com.
References
Bowman, J. (2017, November 19). Why Wal-Mart could soon split its stock again. Yahoo! Finance. Retrieved May 4, 2022, from https://finance.yahoo.com/news/why-wal-mart-could-soon-131700475.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAGes9y88WZcVbiN8ZMx0KT5XssVpRLRKl1TnxKY7ghtyXKfX95TE3ZSAIdqqoiNeyBt0pZmwOmh9yHIRJThmVIFNZ6I8K3suzk2KcojBcdHwWv8RRmyG2TgzheAsuRyfmtdxdr3ZeTKRNGJ1SApnK4xRP8z6mxt8FOyg_AprIfFx#:~:text=Wal%2DMart%20has%20enacted%202,the%20day%20of%20the%20split
Google. (n.d.). Walmart Inc (WMT) stock price & news. Google Finance. Retrieved May 4, 2022, from https://www.google.com/finance/quote/WMT:NYSE?sa=X&ved=2ahUKEwielKW_-sT3AhUiyoUKHSXoC2EQ3ecFegQIMxAi&window=5Y
Walmart shares outstanding 2010-2022: WMT. Macrotrends. (n.d.). Retrieved May 4, 2022, from https://www.macrotrends.net/stocks/charts/WMT/walmart/shares-outstanding#:~:text=Walmart%202022%20shares%20outstanding%20were,a%200.73%25%20decline%20from%202020