Stock Analysis on Net

Walmart Inc. (NYSE:WMT)

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Walmart Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 18,517 13,880 15,307 18,130 18,200 9,089
Invested capital2 155,389 149,558 156,225 164,411 167,329 158,768
Performance Ratio
ROIC3 11.92% 9.28% 9.80% 11.03% 10.88% 5.72%
Benchmarks
ROIC, Competitors4
Costco Wholesale Corp. 16.31% 20.27% 18.56% 14.65% 16.61%
Target Corp. 14.44% 12.64% 26.11% 16.47% 14.30% 14.14%

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 NOPAT. See details »

2 Invested capital. See details »

3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 18,517 ÷ 155,389 = 11.92%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Walmart Inc. ROIC deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Decomposition of ROIC

Walmart Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Jan 31, 2024 11.92% = 3.88% × 4.14 × 74.34%
Jan 31, 2023 9.28% = 3.26% × 4.05 × 70.29%
Jan 31, 2022 9.80% = 3.77% × 3.63 × 71.57%
Jan 31, 2021 11.03% = 4.26% × 3.38 × 76.71%
Jan 31, 2020 10.88% = 4.52% × 3.11 × 77.46%
Jan 31, 2019 5.72% = 2.84% × 3.21 × 62.80%

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 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2024 year is the increase in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Walmart Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 18,517 13,880 15,307 18,130 18,200 9,089
Add: Cash operating taxes2 6,392 5,868 6,080 5,505 5,296 5,384
Net operating profit before taxes (NOPBT) 24,909 19,748 21,387 23,635 23,496 14,473
 
Net sales 642,637 605,881 567,762 555,233 519,926 510,329
Profitability Ratio
OPM3 3.88% 3.26% 3.77% 4.26% 4.52% 2.84%
Benchmarks
OPM, Competitors4
Costco Wholesale Corp. 3.28% 3.79% 3.58% 3.37% 3.30%
Target Corp. 5.62% 3.72% 9.00% 7.15% 6.17% 5.67%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
OPM = 100 × NOPBT ÷ Net sales
= 100 × 24,909 ÷ 642,637 = 3.88%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Walmart Inc. OPM deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Turnover of Capital (TO)

Walmart Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Net sales 642,637 605,881 567,762 555,233 519,926 510,329
Invested capital1 155,389 149,558 156,225 164,411 167,329 158,768
Efficiency Ratio
TO2 4.14 4.05 3.63 3.38 3.11 3.21
Benchmarks
TO, Competitors3
Costco Wholesale Corp. 6.81 7.03 6.74 5.62 6.23
Target Corp. 3.08 3.56 3.47 3.03 2.83 2.86

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 Invested capital. See details »

2 2024 Calculation
TO = Net sales ÷ Invested capital
= 642,637 ÷ 155,389 = 4.14

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Walmart Inc. TO improved from 2022 to 2023 and from 2023 to 2024.

Effective Cash Tax Rate (CTR)

Walmart Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2024 Jan 31, 2023 Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 18,517 13,880 15,307 18,130 18,200 9,089
Add: Cash operating taxes2 6,392 5,868 6,080 5,505 5,296 5,384
Net operating profit before taxes (NOPBT) 24,909 19,748 21,387 23,635 23,496 14,473
Tax Rate
CTR3 25.66% 29.71% 28.43% 23.29% 22.54% 37.20%
Benchmarks
CTR, Competitors4
Costco Wholesale Corp. 27.04% 23.89% 23.00% 22.65% 19.18%
Target Corp. 16.78% 4.45% 16.42% 23.99% 18.12% 12.76%

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 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 6,392 ÷ 24,909 = 25.66%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Walmart Inc. CTR increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.