Wal-Mart ended FY 2011with record breaking revenue and there best earnings in five years.   Wal-Mart focus on being successful, making customers as well as employees happy paid off.   Net Sales increased 3.4 percent to $419 billion. A measure of Wal-Mart’s earning power from its operations or operating income increased by 6.4 percent to more than $25 billion.       Wal-Mart continues to Return on Investment (ROI) which is calculated as ROI=gain of investment-cost of investment/cost of investment, there returns since FY 2009 stay between 19.3 percent and 19.2 percent which is returned to shareholders through dividends and share repurchases.   Wal-Mart brought in 10.9 billion in free cash flow which is cash a company produces from its operations less the cost of expanding its asset base. January 31, 2011, to present Wal-Mart has awarded share-based compensation. When balancing the interest of shareholders and management you have to make plans and that is what a Share base compensation is, they are simply plans.   Increased stocks make a prosperous manager.   According to Wal-Mart’s annual report the total income tax benefit recognized for all share-based compensation plans was $141 million, $126 million and $112 million for fiscal 2011, 2010 and 2009, respectively.   The share base compensation is broken down in award types, such as the Restricted Stock Award Share, which is company stock that can’t be touch until you are vested or there is a lapse in restrictions. That is called the vesting period, once that period is over the stock will be treated as any other stock. In FY 2010 Wal-Mart went through a Restructuring Charges Phase, which is generally used when doing such things as hiring new employees or paying severances for lay-offs.
To calculate the net income of companies, they use Restructuring Charges. Generally restructuring charges are less likely to result in a decrease in the company’s share price.
Wal-Mart closed 10 Sam Clubs; along with other streamlining...