Annual Report Analysis
Principles of Financial Accounting
May 2010
Jeff Wojewoda, Julia Gaiser & Emily Cray
Table of Contents
Introduction to Wal-Mart…………………………………………………………………………………3
Overview of Performance for 2010; Projected Outlook for 2011…………….……….5
SWOT Analysis………………………………………………………………………………………….…….8
Horizontal Analysis…………………………………………………………………………………….….10
Trend Analysis…………………………………………………………………………………………….….11
Vertical Analysis……………………………………………………………………………………………..13
Ratio Analysis of the Company’s Liquidity, Profitability, Solvency and Cash Flow
Adequacy…………………………………………………………………………………………………….….15
Summary and Recommendations……………………………………………………………….……20
Reference Page………………………………………………………………………………………………..21
Appendix A: Components of Wal-Mart’s Annual Report…………………………………….I
Appendix B: Ratios and Analysis………………………………………………………………………..II
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Introduction to Wal-Mart
A Brief History
Founded by Sam Walton in 1962, Wal-Mart has evolved into the world’s largest
public corporation by revenue, according to the 2008 Fortune Global 500. It is currently
the largest private employer and the largest grocery retailer in the United States. In
addition to it’s large, discount department stores, it also owns and operates the Sam’s Club
retail warehouses, which have also been successful under Wal-Mart’s reign since opening
in 1983. Wal-Mart began expanding internationally in 1991; operating in Mexico as
Walmex, the United Kingdom as Asda, in Japan as Seiyu, and India as Best Price. Its
operations in the United Kingdom, South America and China are highly successful, but
desperately failed in other markets like Germany and South Korea.
In 1970, Wal-Mart stock was offered for the first time on the New York Stock
Exchange and in May 1971, Wal-Mart experienced it’s first stock split at a market price of
$47. By 1989, there were 1,402 Wal-Mart stores and 123 Sam’s Club locations. Sales had
grown from $1 billion in 1980 to $26 billion within the decade; and by 1990, Wal-Mart had
positioned itself as the nation’s number one retailer. In 1997, it had become the nation’s
leading employer with 680,000 associates and experienced its first $100 billion dollar sales
year: total sales hit $105,000,000,000. The following year, 1998, Wal-Mart exceeded $100
million in annual charitable contributions, with donations totaling $102,000,000. In 2002,
it was listed for the first time as America’s largest corporation on the fortune 500 with
revenues of $219.8 billion and profits of $6.7 billion. It has held this title every year, except
for 2006.
Overview of its Products and Services
An average Wal-Mart discount store claims an inventory of about 150,000 items;
it employs about 225 associates, and is around 108,000 square feet in size. Its shelves are
stocked with a variety of value-priced merchandise including: apparel, health and beauty
products, electronics, toys, lawn and garden items, jewelry, automotive products, home
furnishings, hardware, sporting goods, pet supplies and housewares. According to Sam
Walton himself, Wal-Mart strives to offer its customers “a wide assortment of quality
merchandise; the lowest possible prices; guaranteed satisfaction; friendly, knowledgeable
service; convenient hours; and a pleasant shopping experience”.
The Industry
In North America, Wal-Mart’s primary competition includes discount departments
stores like K-Mart, Target and ShopKo. Competitors of Wal-Mart’s Sam’s Club division are
Costco and BJ’s Wholesale Club. Wal-Mart competes in the following industries: Discount &
Variety Retail, Gasoline Retailers, Financial Services, Retail, Consumer Electronics &
Appliances Retail, Warehouse Clubs & Superstores.
Wal-Mart Today
Today, Wal-Mart’s headquarters reside in Bentonville, Arkansas, overseeing more
than 8,400 stores and club locations in 15 countries. Wal-Mart employs more than 2.1
million associates and serve customers more than 200 million times per week. For the
fiscal year ending January 31, 2010, Wal-Mart reported a net income of $14,335,000. Its
stock is publicly traded on the New York Stock Exchange under the ticker WMT for the
market price of $54.77 (listed day’s end on May 5, 2010). For the 2009-2010 year, Wal-
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Mart’s stock had a 52-week high market price of $56.27 and a 52-week low of $47.35.
Michael T. Duke has been its President and CEO since February 2009. Samuel Robson
Walton, the eldest son of Wal-Mart founder Sam Walton, is currently the Chairman of the
Board of Directors. Wal-Mart’s Audit Committee of the Board of Directors consists solely of
independent directors overseeing Wal-Mart’s annual consolidated financial statements in
accordance with generally accepted auditing standards. Ernst & Young LLP, an
independent and registered public accounting firm also holds a position on the Audit
Committee.
Overview of Performance for 2010; Projected Outlook for 2011
Wal-Mart’s projected future is only positioned for aggressive growth. Its
performance is extraordinary for fiscal year 2010, partially due to international success as
sales in the US were hindered by a fragile economy. However, the challenging US economy
nicely pairs with Wal-Mart’s mission to help customers “Save money, live better” and
allows Wal-Mart to perform as a haven for budget-constricted consumers. International
expansion will open up many more opportunities for global growth and continue to
generate revenue. Therefore, 2011 is expected to be another strong year, promising for
more national and international growth with negligent competition.
During the first quarter of the 2010 fiscal year, Wal-Mart reported net sales as
$93.471 billion, a decrease of 0.6 percent from $94.042 billion in the first quarter of the
2009 fiscal year. There was a notable negative impact due to currency exchange rates
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equal to $4.836 billion. Income from continuing operations for the first quarter of $3.030
billion was comparatively even to the same period last year.
The second quarter’s earnings exceeded the consensus estimates: net sales were
$100.082 billion. Again, currency exchange rates negatively affected sales by $4.199
billion. Income from continuing operations increased to $3.449 billion from $3.401 billion
in last year’s period. At the end of the second quarter, Wal-Mart had generated
approximately $4.2 billion in free cash flow and was one of the few Dow 30 companies to
report a year-over-year earnings increase during the quarter.
At the end of quarter three, Wal-Mart had a profit of $4.63 billion and net sales were
reported as $98.667 billion. In the United States, Wal-Mart saw a slight decrease in store
sales. Eduardo Castro-Wright, vice chairman of Wal-Mart stores, stated that customer
traffic at American stores had decreased slightly during the quarter because of effects due
to the recession. Income from continuing operating sales increased to $3.246 billion from
$3.033 billion in the same period last year.
The fourth quarter and the end of the 2010 fiscal year reported great things. The
quarter’s net sales were reported as $112.8 billion - an increase of 4.6 percent from $107.9
billion last year. This figure included a currency exchange rate benefit of $1.9 billion,
explaining part of the sudden increase. Income from continuing operations was $4.7
billion, an increase of almost 24 percent from $3.8 billion in the fourth quarter of last year.
Wal-Mart usually receives a disproportionate part of annual operating income during the
fourth quarter because of the seasonal buying patterns. Overall, Wal-Mart reported a 22%
increase in its profit, because of stores cutting costs and slimming down their inventories.
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Net sales for the full year topped $405 billion, with International net sales exceeding $100
billion for the first time. Wal-Mart US had record operating income of $19.5 billion. Free
cash flow performance closed the year impressively with $14.1 billion in free cash flow – an
increase over last year of almost 21 percent. The company returned $11.5 billion to
shareholders through dividends and share repurchase this 2010 fiscal year, a level of
return that is 58 percent higher than the 2009 fiscal year.
During 2010, Wal-Mart was awarded and recognized with the following titles: 2010
Gold Metal for International Corporate Achievement in Sustainable Development by the
World Environment Center; named one of the 20 Best companies for Multicultural Women
by Working Mother.com; it was ranked #1 for Retail and #9 Overall for Fast Company’s
“Most Innovative Companies 2010”; and finally named Donor of the Year by Feeding
America, for providing funds, vehicles, and more than 100-million pounds of food.
According to Michael Duke, President and CEO, Wal-Mart has plans to expand its
global footprint over 36 million square feet in 2011 and to open more than 150 stores in
the United States. He also expects to focus on their three strategic priorities of growth,
leverage and returns during the 2011 fiscal year. Today, there’s new leadership at the top,
major store renovations, and a newfound focus on environmentally friendly products. WalMart is headed towards becoming a boundary-less, global titan of a corporation. Its current
path foresees even more power, profits and expansion.
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SWOT Analysis
Strengths: Power. Revenues. Employee base. Enormous size. One stop shopping
approach. Global expansion. Low competition.
Wal-Mart has an incredible amount of power in the retail industry. It is the world’s
largest company in terms of revenues and employee base. Wal-Mart has many cost
advantages through its tremendous buyer power, generated by its sheer size. Its business
model of offering a wide range of low-cost products in many different markets meets
convenience demands for customers. The company generates high customer satisfaction
through investing time and money into training employees. Wal-Mart’s global expansion
has exponentially increased its growth and control as well as profits and sales. Wal-Mart
is consistently able to eliminate competition through setting low prices and subsequently
driving competition out of business.
Weaknesses: Sheer size. High debt to equity ratio. Controversy with employees and small
businesses. Bad media.
Wal-Mart is the world’s largest grocery retailer and the control over its massive
inventory could leave some overlooked weak areas due to its huge span of control. Its
diverse product markets don’t allow as much flexibility as some of its more focused
competitors. Its large employee base allows for more room to overlook poor employee
performance. A weakness concerning the company’s financials is its high debt to equity
ratio. The debt to equity ratio equals 149%, meaning their total liabilities are greatly
exceeding the average stockholder’s equity.
Wal-Mart has perhaps experienced more controversy than any other firm in
America. Unions loathe its persistent downward pressure on wages and its refusal to allow
workers to organize. It has been accused of unfair treatment of more elderly employees.
The company is facing one of America’s largest class-action lawsuits alleging wage
discrimination against women. There is also constant concern for competition with local
shops as well as whole communities. These issues have accumulated into bad media
exposure, thus steering potential customers away.
Opportunities: International growth. Sustainability. Effects of the economy.
Strategic alliances.
Currently, Wal-Mart is prioritizing growth. Foremost, it is focusing on international
acquisitions in Asian, Indian and European retail markets. Its range of diversified sites
from large supercenters, to local and mall-based locations allows options for spatial
establishments. Wal-Mart’s green campaign has potential to help clean up its image – it is
also considering expanding into the organic foods market, which has profit potential. Due
to the recession, an increased number of consumers want ease of shopping as well as low
prices, adding to its consumer base. There are also potential opportunities to take over,
merge with, or form strategic alliances with other global retailers.
Threats: International expansion. Competition.
Obstacles such as the ability to locate, hire and retain qualified personnel and the
ability to acquire new store sites on acceptable terms threaten international expansion.
Cultural differences in some potential international markets may result in unreceptive
customers. Because Wal-Mart is the number one retailer, consequentially it is the target of
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competition, locally and globally. Lower manufacturing costs have dropped the cost of
production due to outsourcing to low-cost regions of the world. This has led to threatening
price competition and price deflation in some ranges.
Horizontal Analysis
A horizontal analysis presents a comparison of financial statements between two
years. The analysis compares key aspects of the income statement and balance statement
between the two consecutive years. Year to year changes can be seen as both dollar
amounts and percentages.
The horizontal analysis on the consolidated income statement showed growth in
most aspects from then end of the fiscal year in 2009 to the end of the fiscal year in 2010.
Net sales increased 1.7%, while the cost of these sales was 0.5%. This yielded a gross
margin increase of 3.2%. The net income for the year however grew 7.0%, which exceeds
the percent increase in net sales. Thus the profit margin grew over the year. Wal-Mart
faced increases in operating, selling, general and administrative expenses (2.7%), as well as
increases in interest (8.7%). However the company still proved able to increase its net
income by a decent margin.
Despite increases in Wal-Mart’s cash and cash equivalents (8.7%) as well as net
receivables (6.1%), the current assets decreased 1.3% between the years as inventories
dropped 3.9%. This decrease in inventories may be the result of Wal-Mart’s management
wanting to hold fewer inventories at a given time. Property, equipment, and capital lease
assets increased by about $7654 million over the year (8.0%) and total assets increased
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4.5%. These increases may be the result of Wal-Mart replacing current assets with long
term assets. Because the increase in assets was less than the increase in net income, WalMart has achieved a greater return on assets over the year.
Wal-Mart only had an increase of 0.3% for its current liabilities. While this increase
is greater than the decrease in current assets that was seen, and does hurt the current ratio,
the change is not relatively drastic. Total liabilities only increased 1.9%, which is less than
the increase in total assets. This shows that the company has been conscious about its
liquidity.
Wal-Mart decreased its common stock by 3.8%, but increased its retained earnings
by 4.7%. The increase in retained earnings may be the result of less common stock issued.
Shareholders’ equity had a significant increase of 8.4%. The increase in equity is beneficial
especially concerning the debt to equity ratio. However, as the increase in shareholders’
equity exceeds net income the profit margin is not as great.
Trend Analysis
The trend analysis presents the percent changes over many years in relation to a
base year. Here, a trend analysis is presented over a five-year period from the end of the
fiscal year in 2006, to January 31, 2010. On the income statement, the trend analysis shows
that the nets sales for Wal-Mart have grown steadily over the period. Over the course of
the five year period net sales have grown a little over 32%. The cost of sales has also
grown about 28% over the five year time period. Despite the significant increase in the
cost of sales, the gross margin has shown very steady growth as it has continuously grown
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45.2% over the period. The sales have outweighed their costs as a positive growth in gross
margin is experienced.
The increase in sales has probably arisen at the cost of other expenses as well.
Operating, selling, general and administrative expenses have increased 42.9% over the five
years as well as net interest expenses which has greatly increased 75%. These interest
expenses may have arisen from purchases on credit that were made to increase the sales of
the business. Despite these increases in expenses, Wal-Mart’s net income still constantly
grew over the period which lead to a 27.6% increase in net income over the years.
While a 27.6% increase in net income over five years is good to see, this increase
does not keep up with the 32.1% increase that is seen in net sales. Thus even with a gross
margin growth of 45.2% over the years, expenses are growing quicker than net sales,
particularly operating expenses. While Wal-Mart has been spending more money to earn a
greater income, the returns are not as high as they should be. Thus Wal-Mart’s profit
margin has decreased over time.
Over the course of five years Wal-Mart’s assets have increased 25.7%. By
comparing this growth to net sales and net income, it can be determined that Wal-Mart has
slightly increased its return on assets and asset turnover. Inventories have decreased 5.2%
over the period. This may be a result of the company’s management style in trying to
reduce the amount of inventory the company has on hold at a particular time. With less
invested in inventory the company has more cash to invest in other long term assets such
as property and equipment which have experienced growth of 32.7% over five years.
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Some important things to notice on the trend analysis are that current liabilities have
grown 13.6% over five year, which is more than the growth of current assets (11.2%). This
signifies a decrease in the current ratio over five years. Also, the growth of total liabilities
(44.4%) exceeded the growth of total assets (25.7%) as well. This excessive growth in
liabilities over assets can hurt the liquidity of the company. Lastly, Shareholders’ equity
grew 133.1% over the five years which is less than the increase in net income. This means
that the return on equity over time has decreased.
Vertical Analysis
The vertical analysis presents how different components of a financial statement
relate in comparison to a total figure. The statement consists solely of percentages and is
also called a common-size-statement. A common-size-statement serves as a valuable tool
for comparing the financial statements of two different size companies as numbers are only
expressed as percentages.
At the end of the fiscal year in January 2010, net income was 3.5% of net sales, and at
the end of the fiscal year in January 2009, net income was 3.3% of net sales. This further
shows that Wal-Mart yield at higher profit margin for 2010 as it converted more of its net
sales to net income. Cost of sales was 74.6% of nets sales in 2010 and 76.3% of net sales in
2009. This shows that Wal-Mart made a significant change in its operations to reduce its
relative cost of sales over the year. Most other components on the income statement were
about the same percentage of the net sales between the two years. This signifies that WalMart was relatively consistent with its expenses paid.
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Concerning the balance statement, current assets made up 28.3% of total assets in
2010 and 30.0% in 2009. Wal-Mart decreased the relative amount of current assets to total
assets from 2009 to 2010. Some of this downsize came in the form of inventories as the
relative amount of inventories in comparison to total assets decreased about 1.7%.
Between the two years Wal-Mart has chosen to decrease its relative amount of current
assets and increase it relative amount of long-term assets. The percentage of assets making
up property, equipment and capital leases increased 2% and goodwill increased .15%. As
Wal-Mart chooses to hold more assets that add value to the business and that can be used
for its operations, it decreases the relative amount of assets it can quickly turn into cash
and be used for liquidity.
In 2009 current liabilities was 33.9% of total liabilities and shareholders’ equity, and
in 2010 it was 32.6%. This signifies that Wal-Mart has decreased its relative amount of
short-term obligations over the course of the year. However the relative amount of longterm debt in relation to total liabilities and shareholders’ equity increased 2.2% over the
year. This means that Wal-Mart had relatively more long term financial obligations in the
form of debts at the end of the fiscal year in 2010. However, overall between 2009 and
2010, the relative amount of total liabilities has decreased (1.3%) and the relative amount
of shareholders’ equity in relation to total liabilities and shareholders’ equity had increased
1.6%. This shift represents a relative change in favor of a better debt to equity ratio.
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Ratio Analysis
Liquidity
The current ratio shows the ratio of current assets to current liabilities to determine
if a company is able to pay off their current debt. When a current ratio is higher, a company
has more current assets that it can liquidate to pay off its current debts. In 2009, the
current ratio was .88, and decreased to .87 in 2010. In both years, Wal-Mart’s current ratio
was below 1, which shows that they do not have great debt paying ability. It is also not a
good sign that it decreased from 2009 to 2010.
Quick ratio is also used to determine whether or not a company can pay off their
short-term debt, but it does not include inventories and prepaid expenses. In both 2009 the
quick ratio was 0.20 and in 2010, .21 times.
Receivables turnover measures how many times a company turned its receivables
into cash in a given accounting period. In 2009, the receivables turnover was 106.3 times.
In 2010, it was 101.413 times. In both years, the receivables turnover was strong, because
Wal-Mart turned its receivables into cash over 100 times. Days’ sales uncollected shows the
average of how many days it takes the company to collect accounts receivable. In 2009,
days’ sales uncollected was 3.43 days. In 2010, it was 3.60 days. These numbers show that
Wal-Mart was very efficient in collecting their receivables quickly and acquiring cash. WalMart however should be careful in the future and work to prevent the days’ sales
uncollected ratio from further increasing as it may hurt their cash flow.
Inventory turnover calculates the average number of times that a company sells its
inventory during an accounting period. In 2009, Wal-Mart had an inventory turnover of
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8.79 times. In 2010, their inventory turnover was 9.00 times. In both years, Wal-Mart sold
their inventory within 8 to 9 days. Days inventory on hand calculates the number of days
that it takes a company to sell the inventory that they already have in stock. Wal-Mart had a
days inventory on hand of 41.53 days in 2009, and 40.54 days in 2010. The increase in the
rate that Wal-Mart turnovers their inventory corresponds to their decrease in inventory in
2010 as it appears they try to hold it for less time.
Overall while Wal-Mart has been successful over the past years at turning over their
inventory and receiving their receivables to acquire a constant flow of cash, their current
ratio and quick ratio are quite low. As Wal-Mart’s current liabilities exceeds its current
assets it may have a tough time of paying debts in the future.
Profitability
Profit margin shows what percent of each dollar from sales results in net income. In
2009, Wal-Mart’s profit margin was 3.34%, which means that they made 3.34 cents per
dollar of net sales. In 2010, the profit margin was 3.51%, so Wal-Mart made 3.51 cents for
every dollar of sales. Over the year Wal-Mart was successful at increasing its percent
earnings on its sales.
Asset turnover shows how many dollars of sales are made from each dollar of
assets. In 2009, asset turnover was 2.45 times, which shows that Wal-Mart produced $2.45
in sales for every dollar invested in assets. In 2010, it barely decreased to 2.44 times. WalMart’s asset turnover shows that Wal-Mart is producing sales that are almost 2.5 times the
worth of their assets. Wal-Mart has kept this ratio just about consistent over the past two
years, and it shows they are using their assets effectively.
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Return on assets shows how much assets are generated from each dollar invested.
In 2009, the return on assets was 8.20%. In 2010, it increased to 8.58%. This means that
for each dollar invested in assets, Wal-Mart generated between 8 and 9 cents. Return on
assets is very reliable because it takes into account the profit margin and asset turnover.
Based on the ratio Wal-Mart has become more effective at generating net income with its
assets.
Return on equity shows how much net income is produced from every dollar
invested by the stockholders. The return on equity is .22 in 2009, and .21 in 2010. They
earned 22.1 cents for every dollar invested in 2009, and 21.1 cents for every dollar
invested in 2010. The return of equity decreased in 2010, but not substantially.
The profitability ratios are very favorable for Wal-Mart. Over the year Wal-Mart has
become more effective at turning its net sales into net income based on the profit margin.
Wal-Mart also became more effective at turning its assets into net income. This shows that
Wal-Mart has been smart with its investments and using them to acquire capital. The
return on shareholders’ equity decreased by only a fraction of a cent over the year, which
was not very dramatic. Overall the ratios are very pleasing especially during a recession.
Long Term Solvency
Debt to equity ratio shows the proportion of assets financed by creditors and
proportions financed by the owner. The debt to equity ratio was 149.7% in 2009, and
141% in 2010. So in 2009, creditors were financing about 1.5 as many assets as
shareholders. The involvement of creditors decreased in 2010 as shareholders financed
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relatively more. While it is not a great ratio to have more financing by creditors, Wal-Mart
made a great stride over the last year in getting more assets financed by shareholders.
Interest coverage ratio shows the degree of protection a company has from a default
on interest payments. In 2009, the interest coverage ratio was 3.92 times. In 2010, it was
4.09 times. Since both years the interest coverage ratio is above 1.5, Wal-Mart is capable to
make interest payments.
While it is not favorable to have most of the financing of the assets by creditors, WalMart over the past year put a good portion of its assets under the financing of shareholders,
which will help the company’s long-term solvency. Wal-Mart also increased its interest
coverage ratio which will protect them more from defaulting on interest payments. If WalMart continues to proceed in this direction they should be fine with meeting long-term
obligations.
Cash Flow Adequacy Ratio
Cash flow yield shows the ratio of net cash flows from operating activities to net
income. The cash flow yield in 2009 was 1.72 times, and 1.83 times in 2010. This is good as
the ratio should be at least 1.00. Wal-Mart has increased the amount of cash flow from its
operating activities relative to net income over the year.
Cash flow to sales shows the ratio of net cash flows from operating activities to
sales. The cash flow to sales in 2009 was 5.8%, and 6.4% in 2010. This means that WalMart was able to generate more cash flow from sales during the year.
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Cash flows to assets shows the ratio of net cash flows from operating activities to
average total assets. Cash flows to assets in 2009 was 14.2%, and 15.7% in 2010. Wal-Mart
has increased its cash flow relative to assets over the year.
Free cash flow shows the amount of cash that remains after deducting the funds a
company must commit to continue operating at its planned level. Free cash flow was
$7,902 in 2009, and $9,948 in 2010. Free cash flow was a positive number in both 2009
and 2010, which shows that the company is in a good financial position, and has available
cash to expand or to reduce debt. Furthermore for 2010 Wal-Mart was able to end with
significantly more cash after deducting its funds.
Cash flow adequacy has increased from 2009 to 2010, which is a good indicator of
Wal-Mart’s financial success. In relation to net income, sales, and assets Wal-Mart has
achieved more cash flow from its operating activities. It has also increased the amount of
cash that remains after deducting funds. Wal-Mart has been successful at achieving cash
flow through their operations.
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Summary
After our extensive review and analysis of Wal-Mart Stores Inc, we would recommend
investing a substantial amount of money into this company. Wal-Mart has a promising outlook
for the future. Their goal to expand their global footprint will be accomplished this coming year
through opening many more stores throughout the world. Through international expansion, WalMart has become a titan in the dynamic global economy. Their international sales for the past
fiscal year exceeded $100 billion for the first time – proof of continual upward success. WalMart, the world’s largest public corporation by revenue, the world’s largest private employer,
and the United State’s largest grocery retailer also plans to open another 150 stores domestically
in this upcoming year of 2011.
In the last five years, net sales have increased by 32.1 percent; gross margin by 45.2
percent; and net income by 27.6 percent. These increasing percentages are remarkable to find in
the challenging economy. Also, over the past year the company made a noticeable increase in
profit margin from 3.34 percent to 3.51 percent. The company showed effectiveness with its
assets, as its return on assets increased 0.38 percent over the 2010 fiscal year.
Furthermore, based on our analysis we would not recommend making a substantial
unsecured loan to this company. Despite Wal-Mart’s great size, it is a relatively new company
that is heavily financed by creditors as seen by its latest debt to equity ratio, which is 141
percent. The company also has a low current ratio, which most recently was 0.87, meaning that
the company’s current liabilities exceed its current access. Thus the company does not have
relatively as many assets that it can readily convert to cash to pay debts. Although an immense
company, its liquidity is currently not very strong.
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