18 September 2009

WMT: Financial Gauge Analysis (Update) for the July 2009 Quarter

We previously posted Wal-Mart Stores (NYSE: WMT) preliminary Financial Gauge scores for the three months ended 31 July 2009, which was the second quarter of fiscal 2010.

The retailing behemoth sold more than $400 billion last year at its discount stores.

Data from Walmart's press release announcing earnings were used to calculate the preliminary scores.  Subsequently, on 9 September, Walmart filed a 10-Q with more complete financial statements for the quarter. 

We have now reviewed the 10-Q to discover whether the financial metrics that determine the GCFR scores had changed.

We can report that the final GCFR gauge scores the July 2009 quarter are unchanged from the preliminary set.

  • Overall: 29 of 100 (down from 36)

A couple items from the notes to the financial statements might be interesting to GCFR readers.  This information was generally disclosed previously.

The Sam's Club segment was responsible for 11.9 percent of Walmart's Revenue in the July quarter, but only 7.1 percent of Operating Income.

Walmart has been busy in the debt markets this year.
  • In March, Walmart sold £1.0 billion of 5.625 percent Notes that will mature in March 2034.
  • In May, Walmart sold $1.0 billion of 3.20 percent Notes that will mature in May 2014.
  • In July, Walmart sold $500 million of 6.200% Notes that will mature in April 2038.
  • In August, the Company sold ¥83.1 billion of Fixed Rate Bonds and ¥16.9 billion of Floating Rate Bonds that will mature in August 2014.

Full disclosure: Long WMT at time of writing.

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