Statement of Cash Flows example: Walmart (case study)

[@konstancyja82]

Thats a great explanation! Thanks for doing that

[@TheFinanceStoryteller]

You're welcome! :-)

[@pnorfy61]

Very well explained and good pace :)

[@TheFinanceStoryteller]

Thank you, Pablo!!! More cash flow related videos in the Cash Flow playlist: kzbin.info/www/bejne/o4ulm6Z_jtd_rK8 More Walmart related videos in the Walmart financial statements analysis playlist: kzbin.info/www/bejne/oKDZfIqXit2Xo7c

[@myspace5671]

I am just curious, does walmart takes short term loans to manage cashflow or is it just the small markets..?

[@TheFinanceStoryteller]

Good question! If you download the Walmart annual report and review the balance sheet in there, you will see that the amount in inventories (current assets) is approximately the same as the amount in accounts payable (current liabilities), that certainly helps to balance cash flow. As you saw in this video on the cash flow statement, there is a line in the Cash From Financing Activities (CFFA) section called "net change in short-term borrowings" with cash inflow and cash outflow activity, depending on the year. On the balance sheet, the outstanding ST debt balance is reflected in short term borrowings.

[@myspace5671]

@@TheFinanceStoryteller very interesting, thank you! just subscribed ^^ 🔅

[@TheFinanceStoryteller]

@@myspace5671 Welcome to the channel! Please tell your friends and colleagues. ;-)

[@ettavictor4804]

I'm still confused about the positive inventory value. If it is negative then that implies higher inventory, hence the negative coresponding cash value. So, since it is positive doesn't that imply negative inventory? I mean isn't negative inventory just a sale?

[@TheFinanceStoryteller]

Hi Etta! In a cash flow statement that is put together using the "indirect method" (like this one for Walmart), a change in inventory can be a source of cash, or a use of cash. Inventory value on the balance sheet is always a positive number, which can fluctuate from one balance sheet to the next. If the inventory value on the balance sheet goes up from last year's balance to this year's balance, then in the cash flow statement that is reflected as a use of cash ("negative number", more cash gets stuck on an inventory shelf). If the inventory value on the balance sheet goes down from last year's balance to this year's balance, then in the cash flow statement that is reflected as a source of cash ("positive number", we free up cash from the inventory shelf). Maybe my video on working capital can help: kzbin.info/www/bejne/jqercp-rnpJ1pNE as well as my other videos on the cash flow statement: kzbin.info/www/bejne/eqqZmo2bltB_h5Y

[@Agustinoism]

Sir can you do a video on cash flow for GME thank you sir

[@TheFinanceStoryteller]

Thanks for the suggestion. Not sure whether I will make a video on that, as there are quite a lot of tutorials on cash flow on my channel already.

[@iskandera1783]

What about example of Amazon?))

[@TheFinanceStoryteller]

Here you go! A few years old, but should be very easy to replicate the analysis for more recent financial years: kzbin.info/www/bejne/hnqciWiPl8qelac&pp=gAQBiAQB

[@bashiirabdalla3421]

does this mean Walmart is a Mature stage

[@TheFinanceStoryteller]

Yes, that and being a retail company where you get paid by customers before you have to pay suppliers.