Income Tax Accounting Policy

Income taxes are accounted for under the balance sheet method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases ("temporary differences"). Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date.

Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent that a portion is not more likely than not to be realized. Many factors are considered when assessing whether it is more likely than not that the deferred tax assets will be realized, including recent cumulative earnings, expectations of future taxable income, carryforward periods, and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely heavily on estimates.

In determining the provision for income taxes, an annual effective income tax rate is used based on annual income, permanent differences between book and tax income, and statutory income tax rates. Discrete events such as audit settlements or changes in tax laws are recognized in the period in which they occur.

Walmart records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Walmart records interest and penalties related to unrecognized tax benefits in interest expense and operating, selling, general and administrative expenses, respectively, in Walmart's Consolidated Statements of Income.

Source: Wal-Mart Stores Inc., Annual Report

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Income Tax Expense (Benefit)

Wal-Mart Stores Inc., income tax expense (benefit), continuing operations

USD $ in millions

 
12 months ended Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
U.S. federal 6,377  5,611  4,596  4,600  5,798  4,771 
U.S. state and local 719  622  743  637  599  564 
International 1,523  1,766  1,403  1,466  1,246  1,229 
Current tax provision 8,619  7,999  6,742  6,703  7,643  6,564 
U.S. federal (72) 38  1,444  818  (449) 614 
U.S. state and local 37  (8) 57  39  78  41 
International (479) (48) (299) 19  (133) (74)
Deferred tax expense (benefit) (514) (18) 1,202  876  (504) 581 
Provision for income taxes 8,105  7,981  7,944  7,579  7,139  7,145 

Source: Based on data from Wal-Mart Stores Inc. Annual Reports

Item Description The company
Current tax provision The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable income (loss) from continuing operations. Wal-Mart Stores Inc.'s current tax provision increased from 2012 to 2013 and from 2013 to 2014.
Deferred tax expense (benefit) The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Wal-Mart Stores Inc.'s deferred tax expense (benefit) declined from 2012 to 2013 and from 2013 to 2014.
Provision for income taxes The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to pretax income (loss) from continuing operations; income tax expense (benefit) may include interest and penalties on tax uncertainties based on the entity's accounting policy. Wal-Mart Stores Inc.'s provision for income taxes increased from 2012 to 2013 and from 2013 to 2014.

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Effective Income Tax Rate (EITR)

Wal-Mart Stores Inc., effective income tax rate (EITR) reconciliation

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
U.S. statutory tax rate 35.00% 35.00% 35.00% 35.00% 35.00% 35.00%
U.S. state income taxes, net of federal income tax benefit 2.00% 1.70% 2.00% 1.90% 2.00% 1.90%
Income taxed outside the U.S. -2.80% -2.60% -2.80% -2.20% -1.60% -1.70%
Net impact of repatriated international earnings -1.40% -2.50% -0.30% -1.50% -3.40% -1.10%
Other, net 0.10% -0.60% -1.30% -1.00% 0.40% 0.10%
Effective income tax rate 32.90% 31.00% 32.60% 32.20% 32.40% 34.20%

Source: Based on data from Wal-Mart Stores Inc. Annual Reports

Item Description The company
Effective income tax rate A ratio calculated by dividing the reported amount of income tax expense attributable to continuing operations for the period by GAAP-basis pretax income from continuing operations. Wal-Mart Stores Inc.'s effective income tax rate declined from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.

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Components of Deferred Tax Assets and Liabilities

Wal-Mart Stores Inc., components of deferred tax assets and liabilities

USD $ in millions

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
Loss and tax credit carryforwards 3,566  3,525  2,996  2,968  2,713  1,430 
Accrued liabilities 2,986  2,683  2,949  3,532  3,141  2,548 
Share-based compensation 126  204  376  332  267  206 
Other 1,573  1,500  1,029  708  751  374 
Deferred tax assets 8,251  7,912  7,350  7,540  6,872  4,558 
Valuation allowance (1,801) (2,225) (2,528) (2,899) (2,167) (1,852)
Deferred tax assets, net of valuation allowance 6,450  5,687  4,822  4,641  4,705  2,706 
Property and equipment (6,295) (5,830) (5,891) (4,848) (4,015) (3,257)
Inventories (1,641) (1,912) (1,627) (1,014) (1,120) (1,079)
Other (1,827) (1,157) (409) (474) (609) 25 
Deferred tax liabilities (9,763) (8,899) (7,927) (6,336) (5,744) (4,311)
Net deferred tax assets (liabilities) (3,313) (3,212) (3,105) (1,695) (1,039) (1,605)

Source: Based on data from Wal-Mart Stores Inc. Annual Reports

Item Description The company
Deferred tax assets The sum of the tax effects as of the balance sheet date of the amounts of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws (before the valuation allowance, if any, to reduce such sum amount to net realizable value). Includes any tax benefit realized in deferred tax assets for significant impacts of tax planning strategies. Wal-Mart Stores Inc.'s deferred tax assets increased from 2012 to 2013 and from 2013 to 2014.
Deferred tax assets, net of valuation allowance The aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; net of deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Wal-Mart Stores Inc.'s deferred tax assets, net of valuation allowance increased from 2012 to 2013 and from 2013 to 2014.
Net deferred tax assets (liabilities) For entities that net deferred tax assets and tax liabilities, represents the unclassified net amount of deferred tax assets and liabilities as of the balance sheet date, which result from applying the applicable enacted tax rate to net temporary differences and carryforwards pertaining to assets or liabilities. A temporary difference is a difference between the tax basis of an asset or liability and its carrying amount in the financial statements prepared in accordance with generally accepted accounting principles that will reverse in ensuing periods. Wal-Mart Stores Inc.'s net deferred tax assets (liabilities) declined from 2012 to 2013 and from 2013 to 2014.

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Deferred Tax Assets and Liabilities, Classification

Wal-Mart Stores Inc., deferred tax assets and liabilities, classification

USD $ in millions

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
Current deferred tax assets (included in prepaid expenses and other) 822  520  815  1,636  1,386  1,293 
Noncurrent deferred tax assets (included in other assets and deferred charges) 1,151  757  738  327  331  202 
Current deferred tax liabilities (included in accrued liabilities) 176  116  41  17  34  24 
Noncurrent deferred tax liabilities (included in deferred income taxes and other) 5,110  4,373  4,617  3,641  2,722  3,076 

Source: Based on data from Wal-Mart Stores Inc. Annual Reports

Item Description The company
Current deferred tax assets (included in prepaid expenses and other) The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward should be presented as a reduction of the related deferred tax asset. Wal-Mart Stores Inc.'s current deferred tax assets (included in prepaid expenses and other) declined from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
Noncurrent deferred tax assets (included in other assets and deferred charges) The noncurrent portion as of the balance sheet date of the aggregate carrying amount of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after the valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. Wal-Mart Stores Inc.'s noncurrent deferred tax assets (included in other assets and deferred charges) increased from 2012 to 2013 and from 2013 to 2014.
Current deferred tax liabilities (included in accrued liabilities) Represents the current portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A current taxable temporary difference is a difference between the tax basis and the carrying amount of a current asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. Wal-Mart Stores Inc.'s current deferred tax liabilities (included in accrued liabilities) increased from 2012 to 2013 and from 2013 to 2014.
Noncurrent deferred tax liabilities (included in deferred income taxes and other) Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. Wal-Mart Stores Inc.'s noncurrent deferred tax liabilities (included in deferred income taxes and other) declined from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.

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Analyst Adjustments: Removal of Deferred Taxes

Wal-Mart Stores Inc., adjustments to financial data

USD $ in millions

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
Adjustment to Current Assets
Current assets (as reported) 61,185  59,940  54,975  51,893  48,331  48,949 
Less: Current deferred tax assets, net 822  520  815  1,636  1,386  1,293 
Current assets (adjusted) 60,363  59,420  54,160  50,257  46,945  47,656 
Adjustment to Total Assets
Total assets (as reported) 204,751  203,105  193,406  180,663  170,706  163,429 
Less: Current deferred tax assets, net 822  520  815  1,636  1,386  1,293 
Less: Noncurrent deferred tax assets, net 1,151  757  738  327  331  202 
Total assets (adjusted) 202,778  201,828  191,853  178,700  168,989  161,934 
Adjustment to Current Liabilities
Current liabilities (as reported) 69,345  71,818  62,300  58,484  55,561  55,390 
Less: Current deferred tax liabilities, net 176  116  41  17  34  24 
Current liabilities (adjusted) 69,169  71,702  62,259  58,467  55,527  55,366 
Adjustment to Total Liabilities
Total liabilities (as reported) 121,921  120,848  117,241  109,008  97,470  95,953 
Less: Current deferred tax liabilities, net 176  116  41  17  34  24 
Less: Noncurrent deferred tax liabilities, net 5,110  4,373  4,617  3,641  2,722  3,076 
Total liabilities (adjusted) 116,635  116,359  112,583  105,350  94,714  92,853 
Adjustment to Total Walmart Shareholders' Equity
Total Walmart shareholders' equity (as reported) 76,255  76,343  71,315  68,542  70,749  65,285 
Less: Net deferred tax assets (liabilities) (3,313) (3,212) (3,105) (1,695) (1,039) (1,605)
Total Walmart shareholders' equity (adjusted) 79,568  79,555  74,420  70,237  71,788  66,890 
Adjustment to Consolidated Net Income Attributable To Walmart
Consolidated net income attributable to Walmart (as reported) 16,022  16,999  15,699  16,389  14,335  13,400 
Add: Deferred income tax expense (benefit) (514) (18) 1,202  876  (504) 581 
Consolidated net income attributable to Walmart (adjusted) 15,508  16,981  16,901  17,265  13,831  13,981 

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Adjusted Ratios: Removal of Deferred Taxes (Summary)

Wal-Mart Stores Inc., adjusted ratios

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
Current Ratio
Reported current ratio 0.88 0.83 0.88 0.89 0.87 0.88
Adjusted current ratio 0.87 0.83 0.87 0.86 0.85 0.86
Net Profit Margin
Reported net profit margin 3.39% 3.65% 3.54% 3.91% 3.54% 3.34%
Adjusted net profit margin 3.28% 3.64% 3.81% 4.12% 3.41% 3.48%
Total Asset Turnover
Reported total asset turnover 2.31 2.29 2.29 2.32 2.37 2.46
Adjusted total asset turnover 2.33 2.31 2.31 2.34 2.40 2.48
Financial Leverage
Reported financial leverage 2.69 2.66 2.71 2.64 2.41 2.50
Adjusted financial leverage 2.55 2.54 2.58 2.54 2.35 2.42
Return on Equity (ROE)
Reported ROE 21.01% 22.27% 22.01% 23.91% 20.26% 20.53%
Adjusted ROE 19.49% 21.34% 22.71% 24.58% 19.27% 20.90%
Return on Assets (ROA)
Reported ROA 7.83% 8.37% 8.12% 9.07% 8.40% 8.20%
Adjusted ROA 7.65% 8.41% 8.81% 9.66% 8.18% 8.63%
Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Wal-Mart Stores Inc.'s adjusted current ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Wal-Mart Stores Inc.'s adjusted net profit margin deteriorated from 2012 to 2013 and from 2013 to 2014.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Wal-Mart Stores Inc.'s adjusted total asset turnover deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Wal-Mart Stores Inc.'s adjusted financial leverage declined from 2012 to 2013 but then slightly increased from 2013 to 2014.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity. Wal-Mart Stores Inc.'s adjusted ROE deteriorated from 2012 to 2013 and from 2013 to 2014.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Wal-Mart Stores Inc.'s adjusted ROA deteriorated from 2012 to 2013 and from 2013 to 2014.

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Adjusted Current Ratio

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
As Reported
Current assets (USD $ in millions) 61,185  59,940  54,975  51,893  48,331  48,949 
Current liabilities (USD $ in millions) 69,345  71,818  62,300  58,484  55,561  55,390 
Current ratio1 0.88 0.83 0.88 0.89 0.87 0.88
Adjusted for Deferred Taxes
Adjusted current assets (USD $ in millions) 60,363  59,420  54,160  50,257  46,945  47,656 
Adjusted current liabilities (USD $ in millions) 69,169  71,702  62,259  58,467  55,527  55,366 
Adjusted current ratio2 0.87 0.83 0.87 0.86 0.85 0.86

2014 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 61,185 ÷ 69,345 = 0.88

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 60,363 ÷ 69,169 = 0.87

Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Wal-Mart Stores Inc.'s adjusted current ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.

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Adjusted Net Profit Margin

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
As Reported
Consolidated net income attributable to Walmart (USD $ in millions) 16,022  16,999  15,699  16,389  14,335  13,400 
Net sales (USD $ in millions) 473,076  466,114  443,854  418,952  405,046  401,244 
Net profit margin1 3.39% 3.65% 3.54% 3.91% 3.54% 3.34%
Adjusted for Deferred Taxes
Adjusted consolidated net income attributable to Walmart (USD $ in millions) 15,508  16,981  16,901  17,265  13,831  13,981 
Adjusted net profit margin2 3.28% 3.64% 3.81% 4.12% 3.41% 3.48%

2014 Calculations

1 Net profit margin = 100 × Consolidated net income attributable to Walmart ÷ Net sales
= 100 × 16,022 ÷ 473,076 = 3.39%

2 Adjusted net profit margin = 100 × Adjusted consolidated net income attributable to Walmart ÷ Net sales
= 100 × 15,508 ÷ 473,076 = 3.28%

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Wal-Mart Stores Inc.'s adjusted net profit margin deteriorated from 2012 to 2013 and from 2013 to 2014.

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Adjusted Total Asset Turnover

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
As Reported
Net sales (USD $ in millions) 473,076  466,114  443,854  418,952  405,046  401,244 
Total assets (USD $ in millions) 204,751  203,105  193,406  180,663  170,706  163,429 
Total asset turnover1 2.31 2.29 2.29 2.32 2.37 2.46
Adjusted for Deferred Taxes
Adjusted total assets (USD $ in millions) 202,778  201,828  191,853  178,700  168,989  161,934 
Adjusted total asset turnover2 2.33 2.31 2.31 2.34 2.40 2.48

2014 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 473,076 ÷ 204,751 = 2.31

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 473,076 ÷ 202,778 = 2.33

Ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Wal-Mart Stores Inc.'s adjusted total asset turnover deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.

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Adjusted Financial Leverage

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
As Reported
Total assets (USD $ in millions) 204,751  203,105  193,406  180,663  170,706  163,429 
Total Walmart shareholders' equity (USD $ in millions) 76,255  76,343  71,315  68,542  70,749  65,285 
Financial leverage1 2.69 2.66 2.71 2.64 2.41 2.50
Adjusted for Deferred Taxes
Adjusted total assets (USD $ in millions) 202,778  201,828  191,853  178,700  168,989  161,934 
Adjusted total Walmart shareholders' equity (USD $ in millions) 79,568  79,555  74,420  70,237  71,788  66,890 
Adjusted financial leverage2 2.55 2.54 2.58 2.54 2.35 2.42

2014 Calculations

1 Financial leverage = Total assets ÷ Total Walmart shareholders' equity
= 204,751 ÷ 76,255 = 2.69

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Walmart shareholders' equity
= 202,778 ÷ 79,568 = 2.55

Ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Wal-Mart Stores Inc.'s adjusted financial leverage declined from 2012 to 2013 but then slightly increased from 2013 to 2014.

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Adjusted Return On Equity (ROE)

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
As Reported
Consolidated net income attributable to Walmart (USD $ in millions) 16,022  16,999  15,699  16,389  14,335  13,400 
Total Walmart shareholders' equity (USD $ in millions) 76,255  76,343  71,315  68,542  70,749  65,285 
ROE1 21.01% 22.27% 22.01% 23.91% 20.26% 20.53%
Adjusted for Deferred Taxes
Adjusted consolidated net income attributable to Walmart (USD $ in millions) 15,508  16,981  16,901  17,265  13,831  13,981 
Adjusted total Walmart shareholders' equity (USD $ in millions) 79,568  79,555  74,420  70,237  71,788  66,890 
Adjusted ROE2 19.49% 21.34% 22.71% 24.58% 19.27% 20.90%

2014 Calculations

1 ROE = 100 × Consolidated net income attributable to Walmart ÷ Total Walmart shareholders' equity
= 100 × 16,022 ÷ 76,255 = 21.01%

2 Adjusted ROE = 100 × Adjusted consolidated net income attributable to Walmart ÷ Adjusted total Walmart shareholders' equity
= 100 × 15,508 ÷ 79,568 = 19.49%

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity. Wal-Mart Stores Inc.'s adjusted ROE deteriorated from 2012 to 2013 and from 2013 to 2014.

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Adjusted Return On Assets (ROA)

 
Jan 31, 2014 Jan 31, 2013 Jan 31, 2012 Jan 31, 2011 Jan 31, 2010 Jan 31, 2009
As Reported
Consolidated net income attributable to Walmart (USD $ in millions) 16,022  16,999  15,699  16,389  14,335  13,400 
Total assets (USD $ in millions) 204,751  203,105  193,406  180,663  170,706  163,429 
ROA1 7.83% 8.37% 8.12% 9.07% 8.40% 8.20%
Adjusted for Deferred Taxes
Adjusted consolidated net income attributable to Walmart (USD $ in millions) 15,508  16,981  16,901  17,265  13,831  13,981 
Adjusted total assets (USD $ in millions) 202,778  201,828  191,853  178,700  168,989  161,934 
Adjusted ROA2 7.65% 8.41% 8.81% 9.66% 8.18% 8.63%

2014 Calculations

1 ROA = 100 × Consolidated net income attributable to Walmart ÷ Total assets
= 100 × 16,022 ÷ 204,751 = 7.83%

2 Adjusted ROA = 100 × Adjusted consolidated net income attributable to Walmart ÷ Adjusted total assets
= 100 × 15,508 ÷ 202,778 = 7.65%

Ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Wal-Mart Stores Inc.'s adjusted ROA deteriorated from 2012 to 2013 and from 2013 to 2014.

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