Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Walmart Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018
U.S. federal	2,030)	3,313)	2,991)	2,794)	2,763)	2,998)
U.S. state and local	610)	649)	742)	587)	493)	405)
International	2,654)	1,553)	1,127)	1,205)	1,495)	1,377)
Current tax provision	5,294)	5,515)	4,860)	4,586)	4,751)	4,780)
U.S. federal	608)	(671)	2,316)	663)	(361)	(22)
U.S. state and local	119)	41)	23)	35)	(16)	(12)
International	(297)	(129)	(341)	(369)	(93)	(146)
Deferred tax expense (benefit)	430)	(759)	1,998)	329)	(470)	(180)
Provision for income taxes	5,724)	4,756)	6,858)	4,915)	4,281)	4,600)

Based on: 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), 10-K (reporting date: 2018-01-31).

Item	Description	The company
Current tax provision	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Walmart Inc. current tax provision increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred tax expense (benefit)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Walmart Inc. deferred tax expense (benefit) decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Walmart Inc. provision for income taxes decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Walmart Inc., effective income tax rate (EITR) reconciliation

	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018
U.S. statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	33.80%
U.S. state income taxes, net of federal income tax benefit	3.10%	2.80%	2.90%	2.20%	3.00%	1.70%
Income taxed outside the U.S.	1.10%	-1.50%	-0.10%	-1.00%	-3.40%	-6.30%
Separation, disposal and wind-down of certain business operations	6.30%	0.50%	7.10%	0.00%	6.70%	0.00%
Valuation allowance	1.70%	4.40%	2.30%	2.30%	6.30%	2.10%
Net impact of repatriated international earnings	-0.40%	-0.30%	-0.40%	0.40%	0.80%	-0.10%
Federal tax credits	-1.30%	-1.10%	-0.90%	-0.80%	-1.30%	-0.90%
Enacted change in tax laws	0.00%	0.00%	0.00%	-1.90%	0.00%	0.00%
Change in unrecognized tax benefits	0.30%	0.20%	0.80%	2.50%	0.60%	-0.10%
Other, net	1.80%	-0.60%	0.60%	-0.30%	0.80%	2.00%
Effective income tax rate, before impact of the Tax Act	33.60%	25.40%	33.30%	24.40%	34.50%	32.20%
One-time transition tax	0.00%	0.00%	0.00%	0.00%	3.60%	12.30%
Deferred tax effects	0.00%	0.00%	0.00%	0.00%	-0.70%	-14.10%
Impact of the Tax Act	0.00%	0.00%	0.00%	0.00%	2.90%	-1.80%
Effective income tax rate	33.60%	25.40%	33.30%	24.40%	37.40%	30.40%

Based on: 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), 10-K (reporting date: 2018-01-31).

Item	Description	The company
Effective income tax rate, before impact of the Tax Act	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Walmart Inc. effective income tax rate, before impact of the Tax Act decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Walmart Inc., components of deferred tax assets and liabilities

US$ in millions

	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018
Loss and tax credit carryforwards	7,690)	9,456)	9,179)	9,056)	2,964)	1,989)
Accrued liabilities	3,312)	2,752)	2,582)	2,483)	2,135)	2,482)
Share-based compensation	237)	231)	224)	250)	245)	217)
Lease obligations	4,653)	4,320)	4,450)	4,098)	—)	—)
Other	839)	893)	589)	1,020)	1,131)	1,251)
Deferred tax assets	16,731)	17,652)	17,024)	16,907)	6,475)	5,939)
Valuation allowances	(7,815)	(9,542)	(8,782)	(8,588)	(2,448)	(1,843)
Deferred tax assets, net of valuation allowances	8,916)	8,110)	8,242)	8,319)	4,027)	4,096)
Property and equipment	(4,352)	(4,414)	(4,802)	(4,621)	(4,175)	(3,954)
Acquired intangibles	(932)	(1,065)	(1,071)	(1,152)	(2,099)	(401)
Inventory	(3,032)	(1,588)	(1,235)	(1,414)	(1,354)	(1,153)
Lease right of use assets	(4,727)	(4,355)	(4,390)	(3,998)	—)	—)
Mark-to-market investments	(1,390)	(1,825)	(2,678)	(724)	(335)	—)
Other	(249)	(307)	(675)	(700)	(564)	(540)
Deferred tax liabilities	(14,682)	(13,554)	(14,851)	(12,609)	(8,527)	(6,048)
Net deferred tax assets (liabilities)	(5,766)	(5,444)	(6,609)	(4,290)	(4,500)	(1,952)

Based on: 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), 10-K (reporting date: 2018-01-31).

Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Walmart Inc. deferred tax assets increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Deferred tax assets, net of valuation allowances	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Walmart Inc. deferred tax assets, net of valuation allowances decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Walmart Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Walmart Inc., deferred tax assets and liabilities, classification

US$ in millions

		Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018
	Deferred tax assets (included in Other long-term assets)	1,503)	1,473)	1,836)	1,914)	1,796)	1,879)
	Deferred tax liabilities (included in Deferred income taxes and other)	7,269)	6,917)	8,445)	6,204)	6,296)	3,831)

Based on: 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), 10-K (reporting date: 2018-01-31).

Item	Description	The company
Deferred tax assets (included in Other long-term assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Walmart Inc. deferred tax assets (included in Other long-term assets) decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Deferred tax liabilities (included in Deferred income taxes and other)	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Walmart Inc. deferred tax liabilities (included in Deferred income taxes and other) decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Walmart Inc., adjustments to financial statements

US$ in millions

	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018
Adjustment to Total Assets
Total assets (as reported)	243,197)	244,860)	252,496)	236,495)	219,295)	204,522)
Less: Noncurrent deferred tax assets, net	1,503)	1,473)	1,836)	1,914)	1,796)	1,879)
Total assets (adjusted)	241,694)	243,387)	250,660)	234,581)	217,499)	202,643)
Adjustment to Total Liabilities
Total liabilities (as reported)	159,206)	152,969)	164,965)	154,943)	139,661)	123,700)
Less: Noncurrent deferred tax liabilities, net	7,269)	6,917)	8,445)	6,204)	6,296)	3,831)
Total liabilities (adjusted)	151,937)	146,052)	156,520)	148,739)	133,365)	119,869)
Adjustment to Total Walmart Shareholders’ Equity
Total Walmart shareholders’ equity (as reported)	76,693)	83,253)	80,925)	74,669)	72,496)	77,869)
Less: Net deferred tax assets (liabilities)	(5,766)	(5,444)	(6,609)	(4,290)	(4,500)	(1,952)
Total Walmart shareholders’ equity (adjusted)	82,459)	88,697)	87,534)	78,959)	76,996)	79,821)
Adjustment to Consolidated Net Income Attributable To Walmart
Consolidated net income attributable to Walmart (as reported)	11,680)	13,673)	13,510)	14,881)	6,670)	9,862)
Add: Deferred income tax expense (benefit)	430)	(759)	1,998)	329)	(470)	(180)
Consolidated net income attributable to Walmart (adjusted)	12,110)	12,914)	15,508)	15,210)	6,200)	9,682)

Based on: 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), 10-K (reporting date: 2018-01-31).

Walmart Inc., Financial Data: Reported vs. Adjusted

Walmart Inc., adjusted financial ratios

	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018
Net Profit Margin
Reported net profit margin	1.93%	2.41%	2.43%	2.86%	1.31%	1.99%
Adjusted net profit margin	2.00%	2.27%	2.79%	2.93%	1.21%	1.95%
Total Asset Turnover
Reported total asset turnover	2.49	2.32	2.20	2.20	2.33	2.42
Adjusted total asset turnover	2.51	2.33	2.22	2.22	2.35	2.45
Financial Leverage
Reported financial leverage	3.17	2.94	3.12	3.17	3.02	2.63
Adjusted financial leverage	2.93	2.74	2.86	2.97	2.82	2.54
Return on Equity (ROE)
Reported ROE	15.23%	16.42%	16.69%	19.93%	9.20%	12.66%
Adjusted ROE	14.69%	14.56%	17.72%	19.26%	8.05%	12.13%
Return on Assets (ROA)
Reported ROA	4.80%	5.58%	5.35%	6.29%	3.04%	4.82%
Adjusted ROA	5.01%	5.31%	6.19%	6.48%	2.85%	4.78%

Based on: 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), 10-K (reporting date: 2018-01-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Walmart Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.
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 decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Walmart Inc. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Walmart Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Walmart Inc., Financial Ratios: Reported vs. Adjusted

	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Consolidated net income attributable to Walmart	11,680)	13,673)	13,510)	14,881)	6,670)	9,862)
Net sales	605,881)	567,762)	555,233)	519,926)	510,329)	495,761)
Profitability Ratio
Net profit margin¹	1.93%	2.41%	2.43%	2.86%	1.31%	1.99%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted consolidated net income attributable to Walmart	12,110)	12,914)	15,508)	15,210)	6,200)	9,682)
Net sales	605,881)	567,762)	555,233)	519,926)	510,329)	495,761)
Profitability Ratio
Adjusted net profit margin²	2.00%	2.27%	2.79%	2.93%	1.21%	1.95%

Based on: 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), 10-K (reporting date: 2018-01-31).

2023 Calculations

¹ Net profit margin = 100 × Consolidated net income attributable to Walmart ÷ Net sales
= 100 × 11,680 ÷ 605,881 = 1.93%

² Adjusted net profit margin = 100 × Adjusted consolidated net income attributable to Walmart ÷ Net sales
= 100 × 12,110 ÷ 605,881 = 2.00%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Walmart Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net sales	605,881)	567,762)	555,233)	519,926)	510,329)	495,761)
Total assets	243,197)	244,860)	252,496)	236,495)	219,295)	204,522)
Activity Ratio
Total asset turnover¹	2.49	2.32	2.20	2.20	2.33	2.42
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	605,881)	567,762)	555,233)	519,926)	510,329)	495,761)
Adjusted total assets	241,694)	243,387)	250,660)	234,581)	217,499)	202,643)
Activity Ratio
Adjusted total asset turnover²	2.51	2.33	2.22	2.22	2.35	2.45

Based on: 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), 10-K (reporting date: 2018-01-31).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 605,881 ÷ 243,197 = 2.49

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 605,881 ÷ 241,694 = 2.51

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 2021 to 2022 and from 2022 to 2023.

	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	243,197)	244,860)	252,496)	236,495)	219,295)	204,522)
Total Walmart shareholders’ equity	76,693)	83,253)	80,925)	74,669)	72,496)	77,869)
Solvency Ratio
Financial leverage¹	3.17	2.94	3.12	3.17	3.02	2.63
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	241,694)	243,387)	250,660)	234,581)	217,499)	202,643)
Adjusted total Walmart shareholders’ equity	82,459)	88,697)	87,534)	78,959)	76,996)	79,821)
Solvency Ratio
Adjusted financial leverage²	2.93	2.74	2.86	2.97	2.82	2.54

Based on: 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), 10-K (reporting date: 2018-01-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Total Walmart shareholders’ equity
= 243,197 ÷ 76,693 = 3.17

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Walmart shareholders’ equity
= 241,694 ÷ 82,459 = 2.93

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 decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Consolidated net income attributable to Walmart	11,680)	13,673)	13,510)	14,881)	6,670)	9,862)
Total Walmart shareholders’ equity	76,693)	83,253)	80,925)	74,669)	72,496)	77,869)
Profitability Ratio
ROE¹	15.23%	16.42%	16.69%	19.93%	9.20%	12.66%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted consolidated net income attributable to Walmart	12,110)	12,914)	15,508)	15,210)	6,200)	9,682)
Adjusted total Walmart shareholders’ equity	82,459)	88,697)	87,534)	78,959)	76,996)	79,821)
Profitability Ratio
Adjusted ROE²	14.69%	14.56%	17.72%	19.26%	8.05%	12.13%

Based on: 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), 10-K (reporting date: 2018-01-31).

2023 Calculations

¹ ROE = 100 × Consolidated net income attributable to Walmart ÷ Total Walmart shareholders’ equity
= 100 × 11,680 ÷ 76,693 = 15.23%

² Adjusted ROE = 100 × Adjusted consolidated net income attributable to Walmart ÷ Adjusted total Walmart shareholders’ equity
= 100 × 12,110 ÷ 82,459 = 14.69%

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Walmart Inc. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020	Jan 31, 2019	Jan 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Consolidated net income attributable to Walmart	11,680)	13,673)	13,510)	14,881)	6,670)	9,862)
Total assets	243,197)	244,860)	252,496)	236,495)	219,295)	204,522)
Profitability Ratio
ROA¹	4.80%	5.58%	5.35%	6.29%	3.04%	4.82%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted consolidated net income attributable to Walmart	12,110)	12,914)	15,508)	15,210)	6,200)	9,682)
Adjusted total assets	241,694)	243,387)	250,660)	234,581)	217,499)	202,643)
Profitability Ratio
Adjusted ROA²	5.01%	5.31%	6.19%	6.48%	2.85%	4.78%

Based on: 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), 10-K (reporting date: 2018-01-31).

2023 Calculations

¹ ROA = 100 × Consolidated net income attributable to Walmart ÷ Total assets
= 100 × 11,680 ÷ 243,197 = 4.80%

² Adjusted ROA = 100 × Adjusted consolidated net income attributable to Walmart ÷ Adjusted total assets
= 100 × 12,110 ÷ 241,694 = 5.01%

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Walmart Inc. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Walmart Inc. (NYSE:WMT)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Walmart Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Walmart Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)