Walmart Inc. (NASDAQ:WMT)

The profitability ratios demonstrate fluctuating performance over the observed period. Generally, margins experienced declines through much of 2022 before showing signs of recovery and, in some cases, improvement into 2025. Return on equity and return on assets exhibited more pronounced volatility, with peaks in late 2021 and again in 2024-2025.

Gross Profit Margin

The gross profit margin displayed relative stability in the earlier part of the period, ranging between 24.41% and 24.55% from April 2021 to October 2021. A gradual decline was then observed, reaching a low of 23.46% by January 2022. The margin then stabilized and began a slow, consistent increase, culminating in 24.21% by January 2026. The overall trend suggests improved cost management or pricing power in the later years.

Operating Profit Margin

The operating profit margin followed a similar pattern to the gross profit margin, initially fluctuating around 4.34% to 4.57% before declining to 3.37% by January 2022. A recovery began in late 2022, with the margin reaching 4.35% by January 2025. A slight decrease was noted in the final reported period, settling at 4.22% in July 2025. This indicates potential improvements in operational efficiency, though subject to some recent softening.

Net Profit Margin

The net profit margin exhibited the most significant volatility. It decreased from 2.19% in April 2021 to a low of 1.41% in October 2021, before a notable increase to 2.41% in January 2022. A subsequent decline to 1.51% occurred in October 2022. The margin then demonstrated a strong upward trend, peaking at 3.29% in October 2025, before decreasing slightly to 3.10% in January 2026. This suggests that factors beyond core operations, such as interest expense or tax rates, may be influencing net income.

Return on Equity (ROE)

Return on equity showed substantial fluctuations. A decrease from 15.64% in April 2021 to 9.75% in October 2021 was followed by a recovery to 17.88% in July 2022. A subsequent decline to 12.41% occurred in October 2022. The ratio then experienced a significant increase, reaching a peak of 23.84% in October 2025, before decreasing to 21.98% in January 2026. This volatility suggests significant changes in net income relative to shareholder equity.

Return on Assets (ROA)

Return on assets mirrored the trend observed in ROE, with a decline from 5.18% in April 2021 to 3.28% in October 2021. A recovery to 5.61% in July 2022 was followed by a decline to 3.62% in October 2022. The ratio then increased substantially, peaking at 7.94% in October 2025, before decreasing to 7.69% in January 2026. This indicates changes in profitability relative to total assets.

In summary, the observed ratios suggest a period of challenge in 2022, followed by a recovery and improvement in profitability through 2025. While recent periods show some softening, the overall trend indicates strengthening financial performance. The volatility in ROE and ROA suggests that changes in both profitability and capital structure are influencing these metrics.

The gross profit margin exhibited a generally stable pattern over the analyzed period, spanning from April 2021 to January 2026. While fluctuations occurred, the margin largely remained within a relatively narrow range, indicating consistent performance in maintaining profitability from core operations.

Overall Trend

From April 2021 through January 2023, the gross profit margin experienced a gradual decline, decreasing from 24.55% to a low of 23.46%. This downward trend suggests potential pressures on cost of goods sold or pricing strategies during this timeframe. However, the margin then demonstrated a recovery, increasing to 24.21% by January 2026. This recovery indicates successful mitigation of those earlier pressures or a shift in operational dynamics.

Short-Term Fluctuations

Within the broader trend, several quarterly variations are observable. A slight dip was noted in October 2021 (24.41%) and April 2022 (24.23%). The most significant decline occurred in January 2023 (23.46%). Conversely, peaks were observed in April 2021 (24.55%), July 2021 (24.51%), and January 2026 (24.21%). These fluctuations likely reflect seasonal sales patterns, promotional activities, or changes in product mix.

Recent Performance

The most recent quarters show a strengthening of the gross profit margin. From October 2023 (23.64%) to January 2026 (24.21%), the margin increased consistently. This suggests improved cost management, successful pricing adjustments, or a favorable shift in sales towards higher-margin products. The margin reached its highest point in the observed period in January 2026.

Magnitude of Change

The total change in gross profit margin from the beginning to the end of the period was approximately 0.34 percentage points (from 24.55% to 24.21%). While not a dramatic shift, the consistent upward movement in the latter part of the period is noteworthy. The largest single-quarter decrease was approximately 1.09 percentage points between October 2021 and January 2023.

In conclusion, the gross profit margin demonstrates a resilient performance with a moderate decline followed by a recovery. Recent trends indicate a positive trajectory, suggesting effective strategies for maintaining profitability.

The operating profit margin exhibited fluctuations over the observed period, generally remaining within a relatively narrow range. Initial values demonstrated a slight upward trend, followed by a period of decline, and then a degree of stabilization before concluding with a modest increase.

Initial Trend (Apr 30, 2021 – Jul 31, 2021)

The operating profit margin began at 4.34% and increased to 4.54% over the first four months, indicating improving operational efficiency or pricing power during this timeframe. This initial increase suggests a positive correlation between net sales and operating income.

Subsequent Decline (Oct 31, 2021 – Jan 31, 2023)

From October 2021 through January 2023, the operating profit margin experienced a downward trend, decreasing from 4.50% to 3.37%. This decline coincided with periods of increased net sales, suggesting that while revenue grew, profitability did not keep pace, potentially due to rising costs of goods sold or increased operating expenses. The lowest point was reached in January 2023 at 3.37%.

Stabilization and Recovery (Apr 30, 2023 – Jan 31, 2025)

Starting in April 2023, the operating profit margin showed signs of stabilization, fluctuating between 3.46% and 4.37%. This period indicates a potential stabilization of cost pressures or successful implementation of efficiency measures. A gradual increase is observed through January 2025.

Recent Performance (Feb 01, 2025 – Jan 31, 2026)

The operating profit margin experienced a slight decrease to 4.22% in July 2025, followed by a rebound to 4.22% in October 2025, and a further increase to 4.62% in January 2026. This recent upward movement suggests a potential improvement in operational performance or a favorable shift in the cost structure.

Overall Volatility

The operating profit margin demonstrated a range of 1.25 percentage points (from a high of 4.57% to a low of 3.37%) over the analyzed period. This indicates a moderate level of volatility, potentially influenced by external economic factors or internal strategic decisions.

In summary, the operating profit margin demonstrated a dynamic pattern over the period, with initial gains followed by a decline, stabilization, and a recent positive trend. Further investigation into the underlying drivers of these fluctuations, such as cost of goods sold, operating expenses, and pricing strategies, would be beneficial for a more comprehensive understanding of the company’s profitability.

The net profit margin exhibited fluctuations over the observed period, spanning from April 2021 to January 2026. Initial values demonstrated a decline followed by periods of improvement and subsequent volatility. A general upward trend appears to be emerging in the later periods analyzed.

Initial Decline and Recovery (Apr 2021 - Jan 2022)

The net profit margin began at 2.19% in April 2021, decreasing to 1.41% by October 2021. A recovery was then observed, reaching 2.41% in January 2022. This initial period suggests potential challenges in maintaining profitability, followed by a corrective phase.

Volatility and Dip (Apr 2022 - Oct 2022)

Following the January 2022 peak, the net profit margin experienced volatility, reaching 2.38% in July 2022 before a significant decline to 1.51% in October 2022. This dip indicates a potential disruption to profitability during that period, possibly related to increased costs or decreased sales.

Subsequent Improvement and Peaks (Jan 2023 - Oct 2023)

A substantial increase was noted in January 2023, with the net profit margin reaching 1.93%, followed by a peak of 2.24% in July 2023. However, this was followed by a decrease to 2.57% in October 2023. This suggests a period of recovery and improved performance, although not consistently sustained.

Recent Trend (Jan 2024 - Jan 2026)

From January 2024 through January 2026, the net profit margin generally increased, starting at 2.41% and reaching 3.10% in January 2026. The highest value observed during the entire period was 3.29% in October 2025. This indicates a strengthening of profitability in the most recent quarters analyzed, with a potential for continued positive performance.

Overall, the net profit margin demonstrates a complex pattern of fluctuations. While initial periods showed declines and volatility, the more recent trend suggests improving profitability. Further investigation into the factors driving these changes, such as cost of goods sold, operating expenses, and revenue growth, would be beneficial for a more comprehensive understanding.

The Return on Equity (ROE) for the analyzed period demonstrates considerable fluctuation, generally trending upwards with notable exceptions. Initial values indicate a decrease from 15.64% in April 2021 to 9.75% in October 2021, followed by a recovery and subsequent peak. The latter half of the period shows a generally elevated ROE, with a recent stabilization around the 22-24% range before a slight decrease in the most recent quarters.

Overall Trend

The ROE exhibits a generally positive trajectory over the analyzed timeframe, despite interim declines. The period between April 2021 and January 2022 shows volatility, but the ROE consistently surpasses 15% after that point, reaching its highest levels in late 2023 and early 2024. A slight downward trend is observed in the most recent quarters, though values remain comparatively high.

Significant Fluctuations

A substantial decrease in ROE is observed between July 2021 (12.48%) and October 2021 (9.75%). This coincides with a period of potentially changing market conditions or internal company performance. A significant negative value for consolidated net income in October 2022 (-1,798 US$ in millions) resulted in a corresponding decrease in ROE to 12.41% for that quarter. Conversely, a strong positive net income in July 2023 (7,891 US$ in millions) drove ROE to a peak of 17.65%.

Recent Performance (2024-2025)

From January 2024 through January 2026, ROE values remain consistently high, fluctuating between approximately 18.42% and 23.84%. The most recent quarters show a slight decline from the peak, with ROE decreasing from 23.69% in July 2025 to 21.98% in January 2026. This suggests a potential moderation in profitability relative to equity, though the values remain strong.

Relationship to Net Income and Equity

The ROE is directly influenced by fluctuations in both consolidated net income and total shareholders’ equity. Periods of increased net income generally correlate with higher ROE values, while decreases in net income, particularly negative values, lead to lower ROE. Changes in total shareholders’ equity also impact ROE; increases in equity can dilute the effect of net income, while decreases can amplify it. The observed fluctuations in ROE are consistent with the corresponding changes in these underlying financial components.

The Return on Assets (ROA) exhibited fluctuating performance over the observed period, spanning from April 2021 to January 2026. Initial values demonstrated a decline followed by recovery, and subsequently, a generally increasing trend with some quarterly variations.

Initial Period (Apr 2021 – Jan 2022)

The ROA began at 5.18% in April 2021, decreasing to 4.21% in July 2021 and further to 3.28% in October 2021. A substantial recovery was then observed, with the ROA reaching 5.58% by January 2022. This initial period suggests potential challenges impacting asset utilization or profitability, followed by a corrective phase.

Fluctuating Performance (Apr 2022 – Jan 2023)

From April 2022 to January 2023, the ROA experienced volatility. It started at 5.28% in April 2022, peaked at 5.61% in July 2022, then declined significantly to 3.62% in October 2022. A subsequent increase brought it to 4.80% in January 2023. This period indicates sensitivity to underlying business conditions or seasonal factors.

Increasing Trend (Apr 2023 – Jan 2026)

Beginning in April 2023, the ROA generally trended upwards. It rose from 4.61% to 5.50% in July 2023, with a slight dip to 6.29% in October 2023, then remained relatively stable at 6.15% in January 2024. Further increases were noted, reaching 7.46% in April 2024, 7.47% in October 2024, 7.45% in January 2025, 7.17% in April 2025, 7.88% in July 2025, 7.94% in October 2025, and concluding at 7.69% in January 2026. This sustained improvement suggests enhanced efficiency in utilizing assets to generate profits.

Correlation with Net Income and Total Assets

The fluctuations in ROA generally correlate with changes in consolidated net income. Periods of declining net income, such as October 2022, correspond with lower ROA values. Conversely, increases in net income, as seen in July 2023 and July 2025, align with higher ROA figures. Total assets remained relatively stable throughout the period, with a gradual increase towards the end, suggesting that changes in net income were the primary driver of ROA fluctuations.

Overall, the ROA demonstrates a positive trajectory in the later part of the analyzed timeframe, indicating improved profitability relative to the company’s asset base. However, the earlier periods highlight potential vulnerabilities and the importance of consistent performance management.