Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Walmart Inc. (NYSE:WMT)

Analysis of Goodwill and Intangible Assets

Advanced level

Adjustments to Financial Statements: Removal of Goodwill

Walmart Inc., adjustments to financial statements

US$ in millions

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
Adjustment to Total Assets
Total assets (as reported) 252,496  236,495  219,295  204,522  198,825  199,581 
Less: Goodwill 28,983  31,073  31,181  18,242  17,037  16,695 
Total assets (adjusted) 223,513  205,422  188,114  186,280  181,788  182,886 
Adjustment to Total Walmart Shareholders’ Equity
Total Walmart shareholders’ equity (as reported) 80,925  74,669  72,496  77,869  77,798  80,546 
Less: Goodwill 28,983  31,073  31,181  18,242  17,037  16,695 
Total Walmart shareholders’ equity (adjusted) 51,942  43,596  41,315  59,627  60,761  63,851 

Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).


Walmart Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Walmart Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
Total Asset Turnover
Reported total asset turnover 2.20 2.20 2.33 2.42 2.42 2.40
Adjusted total asset turnover 2.48 2.53 2.71 2.66 2.65 2.62
Financial Leverage
Reported financial leverage 3.12 3.17 3.02 2.63 2.56 2.48
Adjusted financial leverage 4.30 4.71 4.55 3.12 2.99 2.86
Return on Equity (ROE)
Reported ROE 16.69% 19.93% 9.20% 12.66% 17.54% 18.24%
Adjusted ROE 26.01% 34.13% 16.14% 16.54% 22.45% 23.01%
Return on Assets (ROA)
Reported ROA 5.35% 6.29% 3.04% 4.82% 6.86% 7.36%
Adjusted ROA 6.04% 7.24% 3.55% 5.29% 7.50% 8.03%

Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Walmart Inc.’s adjusted total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
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.’s adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Walmart Inc.’s adjusted ROE improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Walmart Inc.’s adjusted ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Walmart Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Net sales 555,233  519,926  510,329  495,761  481,317  478,614 
Total assets 252,496  236,495  219,295  204,522  198,825  199,581 
Activity Ratio
Total asset turnover1 2.20 2.20 2.33 2.42 2.42 2.40
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales 555,233  519,926  510,329  495,761  481,317  478,614 
Adjusted total assets 223,513  205,422  188,114  186,280  181,788  182,886 
Activity Ratio
Adjusted total asset turnover2 2.48 2.53 2.71 2.66 2.65 2.62

Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).

2021 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 555,233 ÷ 252,496 = 2.20

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 555,233 ÷ 223,513 = 2.48

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Walmart Inc.’s adjusted total asset turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Total assets 252,496  236,495  219,295  204,522  198,825  199,581 
Total Walmart shareholders’ equity 80,925  74,669  72,496  77,869  77,798  80,546 
Solvency Ratio
Financial leverage1 3.12 3.17 3.02 2.63 2.56 2.48
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 223,513  205,422  188,114  186,280  181,788  182,886 
Adjusted total Walmart shareholders’ equity 51,942  43,596  41,315  59,627  60,761  63,851 
Solvency Ratio
Adjusted financial leverage2 4.30 4.71 4.55 3.12 2.99 2.86

Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).

2021 Calculations

1 Financial leverage = Total assets ÷ Total Walmart shareholders’ equity
= 252,496 ÷ 80,925 = 3.12

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Walmart shareholders’ equity
= 223,513 ÷ 51,942 = 4.30

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.’s adjusted financial leverage ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Consolidated net income attributable to Walmart 13,510  14,881  6,670  9,862  13,643  14,694 
Total Walmart shareholders’ equity 80,925  74,669  72,496  77,869  77,798  80,546 
Profitability Ratio
ROE1 16.69% 19.93% 9.20% 12.66% 17.54% 18.24%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Consolidated net income attributable to Walmart 13,510  14,881  6,670  9,862  13,643  14,694 
Adjusted total Walmart shareholders’ equity 51,942  43,596  41,315  59,627  60,761  63,851 
Profitability Ratio
Adjusted ROE2 26.01% 34.13% 16.14% 16.54% 22.45% 23.01%

Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).

2021 Calculations

1 ROE = 100 × Consolidated net income attributable to Walmart ÷ Total Walmart shareholders’ equity
= 100 × 13,510 ÷ 80,925 = 16.69%

2 Adjusted ROE = 100 × Consolidated net income attributable to Walmart ÷ Adjusted total Walmart shareholders’ equity
= 100 × 13,510 ÷ 51,942 = 26.01%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Walmart Inc.’s adjusted ROE improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
As Reported
Selected Financial Data (US$ in millions)
Consolidated net income attributable to Walmart 13,510  14,881  6,670  9,862  13,643  14,694 
Total assets 252,496  236,495  219,295  204,522  198,825  199,581 
Profitability Ratio
ROA1 5.35% 6.29% 3.04% 4.82% 6.86% 7.36%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Consolidated net income attributable to Walmart 13,510  14,881  6,670  9,862  13,643  14,694 
Adjusted total assets 223,513  205,422  188,114  186,280  181,788  182,886 
Profitability Ratio
Adjusted ROA2 6.04% 7.24% 3.55% 5.29% 7.50% 8.03%

Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).

2021 Calculations

1 ROA = 100 × Consolidated net income attributable to Walmart ÷ Total assets
= 100 × 13,510 ÷ 252,496 = 5.35%

2 Adjusted ROA = 100 × Consolidated net income attributable to Walmart ÷ Adjusted total assets
= 100 × 13,510 ÷ 223,513 = 6.04%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Walmart Inc.’s adjusted ROA improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.