Stock Analysis on Net
Stock Analysis on Net

Walmart Inc. (NYSE:WMT)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Adjustments to Financial Statements: Removal of Goodwill

Walmart Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Adjustment to Total Assets
Total assets (as reported) 252,399 243,197 244,860 252,496 236,495 219,295
Less: Goodwill 28,113 28,174 29,014 28,983 31,073 31,181
Total assets (adjusted) 224,286 215,023 215,846 223,513 205,422 188,114
Adjustment to Total Walmart Shareholders’ Equity
Total Walmart shareholders’ equity (as reported) 83,861 76,693 83,253 80,925 74,669 72,496
Less: Goodwill 28,113 28,174 29,014 28,983 31,073 31,181
Total Walmart shareholders’ equity (adjusted) 55,748 48,519 54,239 51,942 43,596 41,315

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).

Walmart Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Walmart Inc., adjusted financial ratios

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Total Asset Turnover
Reported total asset turnover 2.55 2.49 2.32 2.20 2.20 2.33
Adjusted total asset turnover 2.87 2.82 2.63 2.48 2.53 2.71
Financial Leverage
Reported financial leverage 3.01 3.17 2.94 3.12 3.17 3.02
Adjusted financial leverage 4.02 4.43 3.98 4.30 4.71 4.55
Return on Equity (ROE)
Reported ROE 18.50% 15.23% 16.42% 16.69% 19.93% 9.20%
Adjusted ROE 27.82% 24.07% 25.21% 26.01% 34.13% 16.14%
Return on Assets (ROA)
Reported ROA 6.15% 4.80% 5.58% 5.35% 6.29% 3.04%
Adjusted ROA 6.92% 5.43% 6.33% 6.04% 7.24% 3.55%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Walmart Inc. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
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.		 Walmart Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Walmart Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Walmart Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Walmart Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales 642,637 605,881 567,762 555,233 519,926 510,329
Total assets 252,399 243,197 244,860 252,496 236,495 219,295
Activity Ratio
Total asset turnover1 2.55 2.49 2.32 2.20 2.20 2.33
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales 642,637 605,881 567,762 555,233 519,926 510,329
Adjusted total assets 224,286 215,023 215,846 223,513 205,422 188,114
Activity Ratio
Adjusted total asset turnover2 2.87 2.82 2.63 2.48 2.53 2.71

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).

2024 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 642,637 ÷ 252,399 = 2.55

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 642,637 ÷ 224,286 = 2.87

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Walmart Inc. adjusted total asset turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 252,399 243,197 244,860 252,496 236,495 219,295
Total Walmart shareholders’ equity 83,861 76,693 83,253 80,925 74,669 72,496
Solvency Ratio
Financial leverage1 3.01 3.17 2.94 3.12 3.17 3.02
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 224,286 215,023 215,846 223,513 205,422 188,114
Adjusted total Walmart shareholders’ equity 55,748 48,519 54,239 51,942 43,596 41,315
Solvency Ratio
Adjusted financial leverage2 4.02 4.43 3.98 4.30 4.71 4.55

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).

2024 Calculations

1 Financial leverage = Total assets ÷ Total Walmart shareholders’ equity
= 252,399 ÷ 83,861 = 3.01

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Walmart shareholders’ equity
= 224,286 ÷ 55,748 = 4.02

Solvency 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.		 Walmart Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
As Reported
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%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Consolidated net income attributable to Walmart 15,511 11,680 13,673 13,510 14,881 6,670
Adjusted total Walmart shareholders’ equity 55,748 48,519 54,239 51,942 43,596 41,315
Profitability Ratio
Adjusted ROE2 27.82% 24.07% 25.21% 26.01% 34.13% 16.14%

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).

2024 Calculations

1 ROE = 100 × Consolidated net income attributable to Walmart ÷ Total Walmart shareholders’ equity
= 100 × 15,511 ÷ 83,861 = 18.50%

2 Adjusted ROE = 100 × Consolidated net income attributable to Walmart ÷ Adjusted total Walmart shareholders’ equity
= 100 × 15,511 ÷ 55,748 = 27.82%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Walmart Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
As Reported
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%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Consolidated net income attributable to Walmart 15,511 11,680 13,673 13,510 14,881 6,670
Adjusted total assets 224,286 215,023 215,846 223,513 205,422 188,114
Profitability Ratio
Adjusted ROA2 6.92% 5.43% 6.33% 6.04% 7.24% 3.55%

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).

2024 Calculations

1 ROA = 100 × Consolidated net income attributable to Walmart ÷ Total assets
= 100 × 15,511 ÷ 252,399 = 6.15%

2 Adjusted ROA = 100 × Consolidated net income attributable to Walmart ÷ Adjusted total assets
= 100 × 15,511 ÷ 224,286 = 6.92%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Walmart Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.