Walmart Inc. (NYSE:WMT)

Reported Total Assets

The reported total assets exhibit a generally positive trend over the analyzed periods. Starting at 236,495 million USD in early 2020, the value increased to 252,496 million USD in 2021, suggesting expansion or increased asset acquisition. Although there was a slight decrease to 244,860 million USD in 2022 and a marginal further decrease in 2023, the figure recovered in subsequent years, reaching 260,823 million USD by early 2025. This pattern indicates some fluctuations but an overall growth in asset base across the five-year horizon.

Adjusted Total Assets

The adjusted total assets, which presumably reflect asset values excluding goodwill or similar intangible assets, follow a pattern consistent with the reported total assets. Beginning at 205,422 million USD in 2020, the figure rose to 223,513 million USD in 2021. Similar to the reported data, there was a decrease in 2022 and 2023 to just above 215,000 million USD, but an upward trend resumes thereafter, reaching 232,031 million USD in 2025. The adjusted assets remain consistently lower than the reported assets, highlighting the valuation impact of goodwill and other intangible assets over time.

Reported Total Walmart Shareholders’ Equity

The reported shareholders’ equity shows an initial increasing trend from 74,669 million USD in 2020 to 83,253 million USD in 2022. However, a notable decline occurs in 2023 to 76,693 million USD, before rebounding strongly in the subsequent years, surpassing previous highs to reach 91,013 million USD by 2025. This suggests some financial adjustments or changes in retained earnings impacting equity during 2023, but overall strength and growth in equity capital over the longer term.

Adjusted Total Walmart Shareholders’ Equity

The adjusted shareholders’ equity, which excludes goodwill, demonstrates a more conservative and lower base compared to the reported equity. It began at 43,596 million USD in 2020 and grew steadily to 54,239 million USD in 2022. Similar to the reported equity, a decline occurred in 2023 to 48,519 million USD, followed by a marked recovery to 62,221 million USD in 2025. The magnitude of adjustment is significant and consistent, indicating that goodwill materially affects the equity valuation. The recovery in adjusted equity suggests underlying business strength despite the adjustments.

Total Asset Turnover

The reported total asset turnover exhibited a consistent upward trend, increasing from 2.2 in 2020 to 2.59 in 2025. Similarly, the adjusted total asset turnover, which accounts for goodwill adjustments, also showed growth, rising from 2.53 in 2020 to 2.91 in 2025. This indicates an improvement in the efficiency with which the company utilizes its assets to generate sales over the observed period.

Financial Leverage

Reported financial leverage demonstrated a fluctuating yet overall declining trend, decreasing from 3.17 in 2020 to 2.87 in 2025, with intermediate variations such as a peak at 3.17 in 2023. The adjusted financial leverage showed a similar pattern but at higher levels, starting at 4.71 in 2020 and reducing to 3.73 in 2025. The decline in leverage suggests a gradual reduction in the company's reliance on debt financing relative to equity.

Return on Equity (ROE)

Reported ROE decreased from 19.93% in 2020 to a low of 15.23% in 2023, before recovering to 21.36% in 2025. The adjusted ROE followed a comparable pattern but at significantly higher magnitudes, decreasing from 34.13% in 2020 to 24.07% in 2023 and then increasing to 31.24% in 2025. The recovery in ROE in the latter years suggests improved profitability or capital efficiency after a period of decline.

Return on Assets (ROA)

Reported ROA showed a decrease from 6.29% in 2020 to 4.8% in 2023, followed by an increase to 7.45% in 2025. Adjusted ROA mirrored this trend, declining from 7.24% in 2020 to 5.43% in 2023 and then rising to 8.38% in 2025. These movements indicate a temporary dip in asset profitability with subsequent improvement, reflecting changing operational efficiency or asset utilization over time.

Overall Insights

The analysis reveals that the company generally improved its asset utilization, as seen in rising asset turnover ratios. Simultaneously, financial leverage decreased, implying a shift toward a more conservative capital structure. Profitability measures, both ROE and ROA, showed initial declines followed by recovery and growth in the most recent years, suggesting effective management actions or favorable market conditions enhancing returns. The adjusted metrics consistently present higher values than reported figures, highlighting the impact of goodwill adjustments on performance assessment.

The analysis of the financial data over the indicated periods reveals several key trends regarding asset composition and efficiency.

Total Assets (Reported)

The reported total assets showed a generally stable trend with minor fluctuations. Starting at 236,495 million US dollars in January 2020, assets increased to 252,496 million US dollars by January 2021. There was a slight decline in the next two years to approximately 243,197 million US dollars in January 2023, followed by a recovery, culminating in the highest recorded amount of 260,823 million US dollars in January 2025. Overall, the period saw a net increase in total assets.

Total Assets (Adjusted for Goodwill)

The goodwill adjusted total assets also showed a generally upward trend but with consistently lower values relative to reported total assets, reflecting the exclusion of goodwill. Beginning at 205,422 million US dollars in January 2020, these assets peaked at 223,513 million in January 2021, then declined through the following two years. This was followed by a gradual increase reaching 232,031 million US dollars in January 2025. The adjusted assets track a similar pattern to the reported figures but suggest some volatility in goodwill values or intangible assets adjustments.

Total Asset Turnover (Reported)

The reported total asset turnover ratio improved steadily throughout the periods, rising from 2.2 in January 2020 and January 2021 to 2.59 in January 2025. This increase indicates an enhancement in the company’s efficiency in generating revenue from its asset base over time.

Total Asset Turnover (Adjusted)

The adjusted total asset turnover ratio, which excludes goodwill impact, consistently remained higher than the reported ratio, starting at 2.53 in January 2020. Despite a slight decrease to 2.48 in January 2021, it resumed a rising trend, reaching 2.91 by January 2025. This sustained improvement reinforces the notion that asset efficiency, excluding intangible assets, has improved meaningfully.

In summary, total assets have increased moderately over the five-year span, with adjusted assets showing slightly more volatility. Both reported and adjusted asset turnover ratios exhibit positive growth trends, signifying improved utilization of assets in revenue generation, with the adjusted asset turnover consistently outperforming the reported ratio.

The analysis of the annual financial data reveals several noteworthy trends and developments over the six-year period under review.

Total Assets

The reported total assets experienced a general increase from US$ 236,495 million in 2020 to US$ 260,823 million in 2025, with slight fluctuations in the interim years, such as a decrease in 2022 and 2023. The adjusted total assets, which exclude goodwill, followed a similar pattern but were consistently lower, reflecting the impact of goodwill on the reported figures. Adjusted assets rose from US$ 205,422 million in 2020 to US$ 232,031 million in 2025, showing steady growth albeit at a somewhat slower pace than reported assets.

Shareholders’ Equity

Reported Walmart shareholders’ equity showed an overall upward trend, increasing from US$ 74,669 million in 2020 to US$ 91,013 million in 2025. However, there was a decline noted in 2023 compared to 2022, indicating a potential period of reduced equity value or distributions exceeding earnings during that year. The adjusted shareholders’ equity, which deducts goodwill, also grew markedly from US$ 43,596 million to US$ 62,221 million over the period. Similar to the reported figures, adjusted equity experienced a drop in 2023 but rebounded thereafter, suggesting some volatility possibly linked to asset revaluations or impairments excluding goodwill.

Financial Leverage

The reported financial leverage ratio remained relatively stable but showed a slight downward trend from 3.17 in 2020 to 2.87 in 2025, with some year-to-year variability. This indicates a modest reduction in the reliance on debt relative to equity over time. In contrast, the adjusted financial leverage ratio, which is higher due to the exclusion of goodwill from equity, also exhibited a declining trend from 4.71 in 2020 to 3.73 in 2025. Despite the overall decrease, the leverage remained elevated, suggesting that when goodwill is excluded, the company appears more leveraged. This highlights the significance of goodwill in the equity base and the impact of intangible assets on the perceived financial risk.

Overall, the data indicates that the company has generally increased its asset base and equity over the analyzed period, with adjusted figures showing more pronounced volatility and lower absolute levels. The financial leverage ratios suggest a gradual deleveraging trend, more evident when excluding goodwill, emphasizing the importance of analyzing adjusted financial metrics to understand the underlying capital structure and risk profile more fully.

The financial data reveals distinct patterns in Walmart Inc.’s shareholders’ equity and return on equity (ROE) over the analyzed periods.

Shareholders’ Equity Trends

Reported total shareholders’ equity generally increased from 74,669 million USD in 2020 to 91,013 million USD in 2025, with a minor decline observed in 2023 before rebounding. This indicates overall growth in the company’s reported net asset base across the years, reflecting potential retained earnings accumulation or capital injections.

Adjusted shareholders’ equity, which accounts for goodwill adjustments, also demonstrated an upward trend from 43,596 million USD in 2020 to 62,221 million USD in 2025. Similar to the reported figure, a slight dip is noted in 2023, but the subsequent recovery suggests sustained value creation excluding intangible asset effects.

Return on Equity (ROE) Trends

Reported ROE showed fluctuations but maintained a relatively stable range, declining from 19.93% in 2020 to a trough of 15.23% in 2023, then increasing to 21.36% by 2025. This trend reflects variations in profitability relative to the reported equity base, with a notable improvement towards the end of the period.

Adjusted ROE, which recalculates returns based on adjusted equity, consistently exceeded the reported ROE throughout the periods, starting at 34.13% in 2020 and decreasing to 24.07% in 2023 before rising again to 31.24% in 2025. Despite a temporary decline, the adjusted ROE levels indicate strong underlying profitability when excluding goodwill effects.

Insights

The consistent gap between adjusted and reported equity suggests that goodwill comprises a significant portion of Walmart’s equity, impacting reported performance metrics. The adjusted figures provide a clearer view of operational efficiency and capital returns.

The recovery and strengthening of both shareholders’ equity and ROE after the dip in 2023 may reflect improved business conditions, operational improvements, or strategic initiatives enhancing shareholder value.

Total Assets

The reported total assets demonstrated an overall increasing trend from 236,495 million USD in 2020 to 260,823 million USD in 2025, despite a slight decline observed between 2021 and 2023. Similarly, the adjusted total assets, which exclude goodwill, followed a comparable pattern, increasing from 205,422 million USD in 2020 to 232,031 million USD in 2025, with a minor dip noted during 2021 to 2023.

Return on Assets (ROA)

Reported ROA decreased from 6.29% in 2020 to 4.8% in 2023, indicating a decline in asset profitability during this period. However, it recovered afterwards, reaching 7.45% in 2025, which surpasses the initial value in 2020. The adjusted ROA, excluding the impact of goodwill, followed a similar trend but presented consistently higher values compared to the reported ROA. This indicator declined from 7.24% in 2020 to 5.43% in 2023 and then improved to 8.38% by 2025, suggesting enhanced underlying profitability once goodwill effects are removed.

Insights

The data indicates that while total assets saw a general increase over the six-year period, asset returns experienced a period of contraction followed by a rebound, reaching higher profitability levels than at the start. The adjusted metrics, which remove goodwill's influence, reveal that the company’s core asset profitability is better than reported figures, and these adjusted figures also exhibit the same pattern of decline and recovery. This suggests that asset efficiency improvements or operational enhancements may have contributed to the post-2023 increase in returns.