Walmart Inc. (NYSE:WMT)

The financial ratios over the periods exhibit notable fluctuations and patterns that reflect changes in operational efficiency, capital structure, and overall profitability.

Return on Assets (ROA)

The ROA started to be reported from January 2020, showing an initial upward trend reaching a peak of 7.87% in the first quarter of 2021. Following this peak, there was a marked decline down to 3.28% by January 2022. Subsequently, ROA recovered somewhat, fluctuating between approximately 3.6% and 7.5% over the next several quarters. The later periods indicate an upward trend with ROA values mostly above 6%, culminating at 7.88% by April 2025. This suggests improved asset efficiency in recent quarters.

Financial Leverage

Financial leverage ratios show a relatively stable pattern, hovering around values between 2.87 and 3.44 throughout the entire period. The ratio slightly decreased from 3.44 in April 2019 to a low of around 2.87 in January 2025 but exhibited periodic small rebounds. This indicates consistent use of debt relative to equity, with no significant shifts in capital structure leverage strategy.

Return on Equity (ROE)

ROE begins to show data starting in January 2020, initially increasing from 19.93% up to a peak of 24.24% around the same period as ROA's peak. Subsequently, a decline followed reaching a low of 9.75% in January 2022. From this trough, ROE displays a recovery pattern with values increasing to the low twenties by the later periods, including a return near the 23-24% range by April 2025. This pattern highlights varying profitability on shareholder equity, possibly influenced by changes in asset utilization and leverage.

Overall, the data suggests that after experiencing declines in both ROA and ROE around early 2022, there has been a recovery phase with improving returns on assets and equity. Financial leverage remains relatively stable throughout, indicating steady capital management. The interplay between moderate changes in leverage and fluctuations in returns points to variations in operational effectiveness and market factors influencing profitability.

The financial data presents several key ratios over multiple quarters, allowing for an analysis of trends and fluctuations in profitability, efficiency, leverage, and overall shareholder returns.

Net Profit Margin (%)

The net profit margin shows variability across the periods analyzed. After an initial increase around early 2020 reaching above 3%, the margin declined significantly, hitting lows near 1.4% by early 2022. Subsequently, it recovered moderately, fluctuating between approximately 1.5% and just over 3%. This suggests some volatility in profitability relative to sales, possibly influenced by external or operational factors affecting costs or revenues.

Asset Turnover (ratio)

Asset turnover remains relatively stable with a slight upward trend overall. Starting at about 2.2 in early 2020, it gradually increased to values around 2.5 by mid-2023 and maintained levels close to this through to 2025. This indicates a consistent ability to generate sales from assets, with a modest improvement in operational efficiency over time.

Financial Leverage (ratio)

Financial leverage displays moderate fluctuations, starting near 3.4 and experiencing a decline to just below 3.0 around 2021, followed by a series of rises and falls within a narrow range of approximately 2.9 to 3.4. Such variation reflects changes in the company’s reliance on debt relative to equity, but overall leverage remained stable without extreme deviations, suggesting cautious financial management.

Return on Equity (ROE) (%)

Return on equity exhibits significant movement over the periods. It peaked above 24% in early 2020 before declining sharply to under 10% by early 2022. After this low point, ROE rebounded strongly, fluctuating between 15% and over 23%, with a notable recovery beyond 22% towards 2025. This pattern reflects the combined effects of profit margin, asset turnover, and leverage changes, indicating periods of enhanced and reduced shareholder profitability.

Overall, the data portrays a company experiencing some instability in profit margin and shareholder returns, counterbalanced by steady operational efficiency and relatively consistent financial leverage. The recovery in return on equity post-2022 suggests improvements in either profitability, asset utilization, or capital structure, signaling adaptive responses to prior challenges.

The financial ratios demonstrate varied trends over the analyzed periods, reflecting changes in profitability, operational efficiency, and leverage.

Tax Burden

The tax burden ratio shows some fluctuations but generally remains in the range of approximately 0.6 to 0.77. The ratio declined steadily from 0.75 in early 2020 to around 0.61 by early 2021, indicating decreased tax impact during that interval. Subsequently, it increases steadily, reaching values near 0.77 towards the end of the latest periods. This pattern suggests variable tax efficiency or changing tax obligations over time.

Interest Burden

The interest burden exhibits modest volatility but stays relatively stable, ranging between approximately 0.86 and 0.92. This indicates a generally consistent ability to cover interest expenses with earnings before interest and taxes, without significant deterioration or improvement.

EBIT Margin

The EBIT margin shows marked variation across quarters, with a peak near 5.32% in early 2020 followed by a decline to a low of roughly 2.47% in late 2021. Thereafter, it recovers gradually, reaching around 4.45% in early 2025. The initial drop and subsequent recovery reflect shifts in operating profitability possibly driven by cost structures, pricing strategies, or external economic factors.

Asset Turnover

Asset turnover ratio exhibits a slight upward trajectory from about 2.17 in early 2020 to around 2.59 in late 2024, followed by a slight decrease to about 2.53 in early 2025. This indicates a moderate improvement in the efficiency with which assets generate revenue over the long term, with some volatility in the most recent periods.

Financial Leverage

Financial leverage decreases from approximately 3.44 in early 2019 to about 2.87 in early 2025, exhibiting fluctuations throughout this timeframe. The overall trend suggests a gradual reduction in dependence on debt financing relative to equity, implying a potentially more conservative capital structure towards the latest reported periods.

Return on Equity (ROE)

ROE demonstrates substantial volatility, peaking around 24.24% in early 2020 and declining to roughly 9.75% in early 2021, followed by a rebound to about 23.69% by early 2025. This reflects considerable shifts in profitability generated from shareholders’ equity, influenced by the interplay of other factors such as asset turnover, margins, tax burden, and leverage.

Overall, the data suggests a period of initial stress or operational challenges around 2020 to early 2021, evidenced by declines in EBIT margin and ROE. Following this, improvements in profitability and asset utilization were observed, coupled with reduced financial leverage, which collectively contributed to enhanced returns on equity in subsequent periods.

The data reveals notable trends across the quarterly financial metrics over several fiscal periods. Each key indicator demonstrates distinct patterns and fluctuations that highlight shifts in operational efficiency and profitability.

Net Profit Margin (%)

The net profit margin displays variability with an overall moderate upward trend after initial fluctuations. Starting near 2.86% in early 2020, the margin peaks around 3.62% in January 2020, followed by a decline to approximately 1.41% in January 2021. Thereafter, it recovers gradually, hovering between 2.2% and 3.1% through to the forecasted periods in 2025. This suggests intermittent challenges impacting profitability but a resilient recovery pattern over time.

Asset Turnover (ratio)

Asset turnover ratios remain relatively stable with minor fluctuations, indicating consistent efficiency in utilizing assets to generate sales. Beginning at approximately 2.2 in early 2020, there is a slight increase over time with periodic oscillations. The ratio approaches a peak near 2.59 in the forecasted quarters of 2024 and 2025. This stability implies steady operational activity and asset management effectiveness.

Return on Assets (ROA) (%)

Return on assets reveals more pronounced cyclical behavior. From a starting point near 6.29% in early 2020, it peaks at 7.87% in January 2020, then decreases substantially to a low around 3.28% in January 2021. The metric gradually improves afterward, with values rising to approximately 7.88% in the forecasted first quarter of 2025. This pattern reflects the combined effects of profitability and asset utilization fluctuations over the periods, ultimately showing a recovery to relatively strong performance levels.

Overall, the analysis indicates that although the company experienced volatility particularly during the early 2020 to 2021 period—likely reflective of external market disruptions—key performance indicators such as net profit margin and return on assets demonstrate recovery and a trend towards improved financial health in the more recent and forecasted quarters. Asset turnover remains robust and steady, supporting consistent sales generation from asset investments.

Tax Burden Ratio

The tax burden ratio shows some fluctuation over the observed quarterly periods. Beginning at 0.75 in early 2020, it decreased gradually to a low of approximately 0.61 by early 2021. This was followed by a recovery trend, with the ratio increasing back above 0.7 in subsequent quarters. Towards the most recent quarters, a moderate upward trend is apparent, peaking near 0.77 by early 2025. The ratio suggests varying effective tax rates impacting net income during the period.

Interest Burden Ratio

This ratio has remained relatively stable, with values mostly ranging between 0.86 and 0.92 throughout the time series. Minor fluctuations are noticeable but do not indicate a substantial change in interest expenses relative to earnings before interest and taxes (EBIT). The consistency suggests stable interest cost management over time.

EBIT Margin (%)

The EBIT margin experienced volatility across the quarters. It peaked early in 2020 at over 5% but declined to a low near 2.47% by early 2022. Following this low point, the margin showed intermittent improvement, reaching levels above 4% in late 2024. These fluctuations imply variable operational efficiency and profitability, possibly influenced by market or cost conditions.

Asset Turnover Ratio

The asset turnover ratio demonstrates a generally stable to slightly increasing trend throughout the period. Early values around 2.2 rose to approximately 2.6 by late 2024. This gradual increase implies improved efficiency in using assets to generate sales over time.

Return on Assets (ROA) (%)

ROA exhibits notable volatility, initially increasing from 6.29% in early 2020 to near 7.87% by early 2020. Subsequently, it declined sharply to close to 3.28% by early 2021, followed by recovery phases that brought ROA back to above 7% in the most recent periods. These movements reflect combined effects of operational profitability (EBIT margin), asset utilization, and financial cost factors (tax and interest burden).

The financial data reveals several notable trends over the observed periods, focusing on tax burden, interest burden, EBIT margin, and net profit margin.

Tax Burden

The tax burden ratio, available from January 31, 2020, shows a generally declining trend in the early years, dropping to around 0.61 by January 31, 2021. Thereafter, it fluctuates moderately, with values mostly ranging from 0.66 to 0.77 through April 30, 2025. This pattern suggests variability in tax expense relative to pre-tax earnings, with an overall moderate tax impact throughout the later periods.

Interest Burden

The interest burden ratio remains relatively stable throughout the periods analyzed, fluctuating narrowly between 0.86 and 0.92. This steadiness indicates consistent interest expense management relative to earnings before interest and taxes, suggesting that interest costs do not exert significant volatility on operating profitability.

EBIT Margin

The EBIT margin exhibits variability across the quarters, with initial values around 4.3% in early 2020, followed by a downward trend through early 2021 reaching lows near 2.67%. Subsequently, margins show partial recovery, fluctuating mostly between 3.0% and 4.3%, ending near 4.45% in the latest periods. This indicates some periods of margin compression followed by recovery, reflecting operational efficiency changes or cost and revenue dynamics over time.

Net Profit Margin

The net profit margin follows a similar pattern to EBIT margin but at lower absolute percentages. Starting around 2.8% in early 2020, it dips to approximately 1.4% by early 2021, then gradually improves with fluctuations up to around 3.1% by early 2025. The fluctuations signal varying net income relative to revenues, potentially driven by operating performance, tax, and interest expense effects combined.

In summary, the data indicates that while interest expense remains stable with minimal impact fluctuation, tax burden and margins experience more variability. Both EBIT and net profit margins show periods of compression, particularly around early 2021, followed by a rebound. This pattern may reflect external economic conditions or company-specific factors influencing profitability across these quarters.