Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Walmart Inc., profitability ratios
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Walmart Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Walmart Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Walmart Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Walmart Inc. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Walmart Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Gross Profit Margin
Walmart Inc., gross profit margin calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 152,495) | 142,160) | 138,762) | 134,918) | 125,321) | 125,028) | |
| Net sales | 642,637) | 605,881) | 567,762) | 555,233) | 519,926) | 510,329) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 23.73% | 23.46% | 24.44% | 24.30% | 24.10% | 24.50% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 10.57% | 10.48% | 11.13% | 11.20% | 11.02% | |
| Target Corp. | 26.53% | 23.57% | 28.34% | 28.38% | 28.87% | 28.39% | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 152,495 ÷ 642,637 = 23.73%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Walmart Inc. gross profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Operating Profit Margin
Walmart Inc., operating profit margin calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 27,012) | 20,428) | 25,942) | 22,548) | 20,568) | 21,957) | |
| Net sales | 642,637) | 605,881) | 567,762) | 555,233) | 519,926) | 510,329) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 4.20% | 3.37% | 4.57% | 4.06% | 3.96% | 4.30% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 3.41% | 3.50% | 3.49% | 3.33% | 3.17% | |
| Target Corp. | 5.39% | 3.58% | 8.55% | 7.08% | 6.04% | 5.52% | |
| Operating Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 3.41% | 4.77% | 4.26% | 4.03% | 4.20% | |
| Operating Profit Margin, Industry | |||||||
| Consumer Staples | — | 7.38% | 8.47% | 8.40% | 8.12% | 7.40% | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 27,012 ÷ 642,637 = 4.20%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Walmart Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Net Profit Margin
Walmart Inc., net profit margin calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Consolidated net income attributable to Walmart | 15,511) | 11,680) | 13,673) | 13,510) | 14,881) | 6,670) | |
| Net sales | 642,637) | 605,881) | 567,762) | 555,233) | 519,926) | 510,329) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 2.41% | 1.93% | 2.41% | 2.43% | 2.86% | 1.31% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 2.65% | 2.62% | 2.61% | 2.45% | 2.45% | |
| Target Corp. | 3.91% | 2.58% | 6.64% | 4.73% | 4.25% | 3.95% | |
| Net Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 2.18% | 2.96% | 2.73% | 2.92% | 1.81% | |
| Net Profit Margin, Industry | |||||||
| Consumer Staples | — | 5.55% | 5.87% | 5.64% | 5.88% | 3.76% | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Net profit margin = 100 × Consolidated net income attributable to Walmart ÷ Net sales
= 100 × 15,511 ÷ 642,637 = 2.41%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Walmart Inc. net profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Return on Equity (ROE)
Walmart Inc., ROE calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Consolidated net income attributable to Walmart | 15,511) | 11,680) | 13,673) | 13,510) | 14,881) | 6,670) | |
| Total Walmart shareholders’ equity | 83,861) | 76,693) | 83,253) | 80,925) | 74,669) | 72,496) | |
| Profitability Ratio | |||||||
| ROE1 | 18.50% | 15.23% | 16.42% | 16.69% | 19.93% | 9.20% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 25.11% | 28.31% | 28.51% | 21.89% | 24.00% | |
| Target Corp. | 30.81% | 24.75% | 54.15% | 30.25% | 27.73% | 26.00% | |
| ROE, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 18.37% | 22.67% | 20.26% | 21.15% | 13.40% | |
| ROE, Industry | |||||||
| Consumer Staples | — | 29.82% | 29.95% | 27.27% | 27.08% | 16.85% | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
ROE = 100 × Consolidated net income attributable to Walmart ÷ Total Walmart shareholders’ equity
= 100 × 15,511 ÷ 83,861 = 18.50%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Walmart Inc. ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Return on Assets (ROA)
Walmart Inc., ROA calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Consolidated net income attributable to Walmart | 15,511) | 11,680) | 13,673) | 13,510) | 14,881) | 6,670) | |
| Total assets | 252,399) | 243,197) | 244,860) | 252,496) | 236,495) | 219,295) | |
| Profitability Ratio | |||||||
| ROA1 | 6.15% | 4.80% | 5.58% | 5.35% | 6.29% | 3.04% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 9.12% | 9.11% | 8.45% | 7.20% | 8.06% | |
| Target Corp. | 7.48% | 5.21% | 12.91% | 8.52% | 7.67% | 7.11% | |
| ROA, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 5.68% | 7.29% | 6.30% | 6.62% | 4.34% | |
| ROA, Industry | |||||||
| Consumer Staples | — | 8.59% | 8.81% | 7.91% | 7.73% | 5.14% | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
ROA = 100 × Consolidated net income attributable to Walmart ÷ Total assets
= 100 × 15,511 ÷ 252,399 = 6.15%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Walmart Inc. ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |