Stock Analysis on Net
Stock Analysis on Net
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Walmart Inc. (NYSE:WMT)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Walmart Inc., adjustment to consolidated net income attributable to Walmart

US$ in millions

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12 months ended: Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
Consolidated net income attributable to Walmart (as reported) 13,510  14,881  6,670  9,862  13,643  14,694 
Add: Unrealized gain on available-for-sale securities —  —  —  1,501  145  — 
Consolidated net income attributable to Walmart (adjusted) 13,510  14,881  6,670  11,363  13,788  14,694 

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).


Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Walmart Inc., adjusted profitability ratios

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Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
Net Profit Margin
Reported net profit margin 2.43% 2.86% 1.31% 1.99% 2.83% 3.07%
Adjusted net profit margin 2.43% 2.86% 1.31% 2.29% 2.86% 3.07%
Return on Equity (ROE)
Reported ROE 16.69% 19.93% 9.20% 12.66% 17.54% 18.24%
Adjusted ROE 16.69% 19.93% 9.20% 14.59% 17.72% 18.24%
Return on Assets (ROA)
Reported ROA 5.35% 6.29% 3.04% 4.82% 6.86% 7.36%
Adjusted ROA 5.35% 6.29% 3.04% 5.56% 6.93% 7.36%

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).

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

Walmart Inc., Profitability Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

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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 
Net sales 555,233  519,926  510,329  495,761  481,317  478,614 
Profitability Ratio
Net profit margin1 2.43% 2.86% 1.31% 1.99% 2.83% 3.07%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted consolidated net income attributable to Walmart 13,510  14,881  6,670  11,363  13,788  14,694 
Net sales 555,233  519,926  510,329  495,761  481,317  478,614 
Profitability Ratio
Adjusted net profit margin2 2.43% 2.86% 1.31% 2.29% 2.86% 3.07%

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 Net profit margin = 100 × Consolidated net income attributable to Walmart ÷ Net sales
= 100 × 13,510 ÷ 555,233 = 2.43%

2 Adjusted net profit margin = 100 × Adjusted consolidated net income attributable to Walmart ÷ Net sales
= 100 × 13,510 ÷ 555,233 = 2.43%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Walmart Inc.’s adjusted net profit margin ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Adjusted Return on Equity (ROE)

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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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted consolidated net income attributable to Walmart 13,510  14,881  6,670  11,363  13,788  14,694 
Total Walmart shareholders’ equity 80,925  74,669  72,496  77,869  77,798  80,546 
Profitability Ratio
Adjusted ROE2 16.69% 19.93% 9.20% 14.59% 17.72% 18.24%

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

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by 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)

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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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted consolidated net income attributable to Walmart 13,510  14,881  6,670  11,363  13,788  14,694 
Total assets 252,496  236,495  219,295  204,522  198,825  199,581 
Profitability Ratio
Adjusted ROA2 5.35% 6.29% 3.04% 5.56% 6.93% 7.36%

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 × Adjusted consolidated net income attributable to Walmart ÷ Total assets
= 100 × 13,510 ÷ 252,496 = 5.35%

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