Introduction
Annual reports and 10k from publicly held companies give the general public and more specifically the average investor a look into the financial make up of the entity. The information can be interpreted in any number of ways however there are generally accepted formulas and ratios that are used to gain insight into a companies financial past, present and possibly future. Using Federated Department Stores Inc. and Wal-Mart as examples, what do the 10Ks and annual reports tells us and what are some of the formulas and ratios that give investors information on the relative financial status of a company?
Federated Department Stores
Cash Generated
For the fiscal year ending January 31, 2004 the FDS had in increase in net cash by $209 million giving the cash for the end of the period of $925 million.
On the cash flow statement the net cash for the continuing operating activities FDS is showing a positive balance for cash at $1,590 million.
The investing activities were not as great as the operating activities unfortunately. With having a negative entry on property and equipment it left the net cash used by the continuing investing activities at a negative $562 million.
The financing activities came out in a positive state with $819 for the next cash used by continuing financing activities.
Significant internal events
Looking at the cash flow statement some significant internal events when you look at the continuing operations before financing activities FDS totaled more then $1 billion. This amount is almost double from the year prior. This enabled FDS to repurchased 16 million in shares of Federated common stock, cash divi ...