Income Statement Items
Walmart vs. Amazon.com
Income statements sometimes referred to as the profit and loss account, is a financial report that explores an organization’s expenses and revenues in a certain period of time. The statement also indicates the losses or profits of an organization, which are usually the income report’s bottom line. Investors usually explore several items on the income financial statement that can be used to assess a company’s capability and performance in an industry. Three items in the income statement that are important to investors include the earnings per share (EPS), operating expenses, and individual revenue. To begin with, Walmart had a revenue of 559.151 billion in the financial year ended 2021 January (Macrotrends, 2021). On the other hand, Amazon had revenue of $386.064 billion (Macrotrends, 2021). This information indicates that Walmart has a higher revenue compared to Amazon in the latest ended financial year.
Secondly, Walmart’s operating expenses in the financial year ended 2021 January was $536.603 billion compared to Amazon’s $363.165 billion (Macrotrends, 2021). Walmart’s operating expenses are higher than that of Amazon.com based on the income statement information for the two companies. The third item on the income statement, which is the earnings per share (EPS), also presents a significant difference between Amazon and Walmart. For Amazon.com, the EPS on the ended the financial year 2020-2021 was $41.83. On the other hand, Walmart’s EPS for the same year was $4.75. In this case, Amazon has higher earnings per share than Walmart.
Balance Sheet Items
Investors can also use several balance sheet items to assess an organization’s potential, like Walmart or Amazon.com. Items such as property, plant, and equipment, accounts receivable, and cash. In the financial year January 2020 to 2021 January, the cash indicated in Amazon’s balance sheet was $84.396 billion compared to Walmart’s $17.741 billion (Macrotrends, 2021). Amazon had more cash at hand than Walmart based on the information from the firms’ balance sheet. Secondly, according to Macrotrends (2021), Walmart’s accounts receivable were $6.516 billion, while the accounts receivable for Amazon were $24.542 billion. The differences indicated between Walmart and Amazon present that both companies operate in different business ways. Another important item to note refers to the property, plant, and equipment of the companies. For Walmart, the property, plant, and equipment was $92.201 billion, while that of Amazon was $113.114 billion. Amazon had more cash at hand, property, plant, and equipment, and accounts receivable from the balance sheet information than Walmart.
Balance Sheet and Income Statement Comparison
The income statements and balance sheets for Amazon.com and Walmart are important reports to the company owners. An even more strong balance sheet will always back strong income financial statements. However, in certain situations, one might be stronger while the other one is weaker. While Amazon and Walmart’s income statements indicate the business performance for the last year, the balance sheets are associated with showing the two companies’ assets and liabilities. For example, Walmart’s liabilities were $164. 965 billion, while those of Amazon was $227.791 billion (Macrotrends, 2021). On the other hand, the total assets for Amazon based on the balance sheet were $321.195 billion, while the total assets for Walmart were $252.496 billion, which indicates the difference in liabilities and assets for the organizations.
Macrotrends. (2021). Amazon Balance Sheet 2005-2021 | AMZN. Retrieved 28 February 2021 from https://www.macrotrends.net/stocks/charts/AMZN/amazon/balance-sheet
Macrotrends. (2021). Amazon Income Statement 2005-2021 | AMZN. Retrieved 28 February 2021 from https://www.macrotrends.net/stocks/charts/AMZN/amazon/income-statement
Macrotrends. (2021). Walmart Balance Sheet 2005-2021 | WMT. Retrieved 28 February 2021 from https://www.macrotrends.net/stocks/charts/WMT/walmart/balance-sheet
Macrotrends. (2021). Walmart Income Statement 2005-2021 | WMT. Retrieved 28 February 2021 from https://www.macrotrends.net/stocks/charts/WMT/walmart/income-statement