Kevin continues to use the inference-style common to McKinsey partners and, particularly, final round interviews. Basic structures do not work and candidates need to recognize when to do more. This counter-intuitive case offers an insightful view on why Walmart is able to win in the market – it is not about superior purchasing power. The case demonstrates the importance of understanding income statement analyses, and using the insights from the calculations to build strategies for companies. Candidates must have a firm grasp of the concepts taught in this case.