Purpose:

Gain a basic understanding of a company in which you are a stakeholder quickly, whether as customer,
employee, supplier, member of the community and/or shareholder.

Connections to BETA-X:
Estimate the timing of cash inflows and outflows.
Compare the footprints of strategy to a competitor, in particular Gross margin%, COGS%, SG&A% and if
available R&D% and Marketing%.
Appreciate the benefits of generating Unearned Revenue.

Access the most recent published annual financial statements from the SEC website, and answer the
following questions:
1. How do the cash conversion cycles for Walmart and Amazon compare?
2. What would be the effect on cash at each company, if both companies reduced their average
A/P to 30 days?
3. What would be the respective cash effects if both companies reduced their inventory days by
10? 
4. What was the effect of Unearned Revenue on the cash conversion cycle at each company?
5. Complete the remaining business health measures (BHM) and interpret the comparative pulse
check, footprints of strategy, investor indicators, and whole health indicators.
6. How do the key differences between operating income and operating cash flows for the two
companies compare in the most recent fiscal year? Interpret your findings.