My chosen corporations are Kroger corp verses Walmart Corporation. The question

Question

My chosen corporations are Kroger corp verses Walmart Corporation. The question is as follows,

Find the cash flow statement for your chosen company and post it, as well as the cash flow for a competitor company. Compare the cash flow for both companies and compare/comment on each. Attach the cash flow statements to your posting.

Tips: Please focus on the elements of the cash flow statement and compare each section. The analysis is not to compare the volume of cash flow. Many companies that are competitors of each other are very different in size. Concentrate on how each company is obtaining its cash and how they are using that cash and note similarities and differences. Compare year over year numbers and note and research any significant trends or differences from year to year . Cash flow analysis consists of operating activities, investing activities, statement of cash flows and financial activities

Explanation / Answer

Answer

Note : Answer is based on latest 10 K fillings of Walmart Stores Inc. and The Kroger Co. Three years of trend is used by taking consolidated statement of cash flows.

Wal-mart stores inc.

Cash flow from operating activities: Company has good operating cash inflows. Company’s operating cash flows is for current year was what less than last year but significantly up compared to second last year. There are no discontinued operations in current year compared to last two years. Non cash expenditure increased in form of depreciation and amortisation constantly over past 3 years. Investments in inventory and accounts receivables has increased consistently over past 3 years. Delay in Account payables payments has also increased shown by inflows in accounts payable amount.

Cash flow from investing activities: Company has invested significantly in property and equipment throughout past 3 years and disposed of very small proportion of old property and equipment in those 3 years.Net cash flows from investing activities for past 3 years have been negative.

Cash flow from financing activities: Company has repaid long term debt throughout past 3 years. Company has also paid dividend and purchased of company stock throughout past 3 years. Company has also raised significant new long term debt in past 2 years. Company has repaid significant short term borrowing in last year. Overall cash flow from financing activity throughout last 3 years has been negative.

The Kroger Co.

Cash flow from operating Activities: Cash flow from operating activity has been positive and improving over past 3 years. Non cash expenditure in form of Depreciation and amortisation has also increased. Investment in Accounts receivables and inventory has also increased throughout past 3 years. Delay in Account payables payments has also increased shown by inflows in accounts payable amount.

Cash flow from investing activities: Company has invested significantly in property and equipment throughout past 3 years and disposed of very small proportion of old in property and equipment in those 3 years. Company was also actively involved in mergers throughout past 3 years showing its outflows.Net cash flows from investing activities for past 3 years have been negative.

Cash flow from financing activities: Company has repaid long term debt throughout past 3 years. Company has also paid dividend and purchased of company stock throughout past 3 years. Company has also raised new long term debt throughout past 3 years. Company has repaid significant short term borrowing in form of commercial paper in current year and second last year. Company has issued very small amount of capital stock throughout past 3 years. Company has also invested very amount in equity of non-controlling interest during current year. Net cash flows from financing activities for past 2 years have been negative.

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