Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Walmart Inc., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 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).
The analysis of the financial ratios over the period from January 31, 2020 to January 31, 2025 reveals distinct trends in asset utilization and efficiency.
- Net Fixed Asset Turnover
- This ratio shows an initial increase from 4.74 in 2020 to a peak of 5.77 in 2021, indicating improved efficiency in generating sales from fixed assets during this period. However, from 2021 onwards, a gradual decline is observed, decreasing to 5.35 by 2025. This suggests a slow erosion in the efficiency with which fixed assets are used to generate revenue.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the net fixed asset turnover, this adjusted ratio increases from 4.09 in 2020 to 5.05 in 2021, followed by a relatively stable period with minor fluctuations around 5.0 until 2023. Subsequently, there is a moderate decline to 4.83 by 2025. This trend implies consistent utilization of leased assets initially, with a slight decrease in efficiency over the later years.
- Total Asset Turnover
- This ratio demonstrates continuous growth throughout the period, starting at 2.20 in 2020 and climbing steadily to 2.59 in 2025. The upward trend indicates increasingly effective use of both fixed and current assets in generating sales, reflecting improved overall asset management.
- Equity Turnover
- Equity turnover remains relatively stable between 6.82 and 6.96 from 2020 to 2022, but shows a significant jump to 7.90 in 2023. After this peak, a slight decline occurs through 2025, settling at 7.41. This pattern suggests improved efficiency in leveraging shareholder equity to generate revenue around 2023, with a modest reduction but sustained high levels thereafter.
In summary, asset utilization ratios show initial improvements, particularly in fixed asset turnover, followed by mild declines in later years. In contrast, total asset turnover consistently improves, highlighting better overall asset efficiency. Equity turnover experiences a marked increase starting in 2023, indicating enhanced use of equity, followed by a minor reduction but remaining at a comparatively elevated level.
Net Fixed Asset Turnover
Walmart Inc., net fixed asset turnover calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 674,538) | 642,637) | 605,881) | 567,762) | 555,233) | 519,926) | |
| Property and equipment, including finance lease right-of-use assets, net | 126,105) | 116,665) | 105,679) | 98,866) | 96,206) | 109,625) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 5.35 | 5.51 | 5.73 | 5.74 | 5.77 | 4.74 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 8.19 | 8.49 | 8.48 | 7.84 | 7.29 | |
| Target Corp. | 3.23 | 3.25 | 3.46 | 3.76 | 3.48 | 2.97 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 5.55 | 5.77 | 5.85 | 5.70 | 4.81 | |
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Staples | — | 5.04 | 5.17 | 5.21 | 5.06 | 4.37 | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 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).
1 2025 Calculation
Net fixed asset turnover = Net sales ÷ Property and equipment, including finance lease right-of-use assets, net
= 674,538 ÷ 126,105 = 5.35
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibit a consistent upward trajectory over the period from January 31, 2020, to January 31, 2025. The figures increase from $519,926 million in 2020 to $674,538 million in 2025, indicating steady growth in revenue generation. The year-over-year increases reflect sustained operational expansion and market demand.
- Property and Equipment, Including Finance Lease Right-of-Use Assets, Net
- The net value of property and equipment shows some fluctuations. There is a decline from $109,625 million in 2020 to $96,206 million in 2021, followed by a gradual rise reaching $126,105 million by 2025. This pattern suggests a potential asset optimization or divestment in 2021, succeeded by renewed investment or acquisition of fixed assets in subsequent years.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio decreases slightly over the analyzed period, from 4.74 in 2020 to 5.35 in 2025, peaking at 5.77 in 2021. This ratio, which measures efficiency in using fixed assets to generate sales, indicates that although sales are growing, the rate at which fixed assets contribute to sales generation is diminishing marginally after 2021. The highest turnover in 2021 suggests maximum operational efficiency in asset utilization during that year, which moderately declines thereafter.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Walmart Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 674,538) | 642,637) | 605,881) | 567,762) | 555,233) | 519,926) | |
| Property and equipment, including finance lease right-of-use assets, net | 126,105) | 116,665) | 105,679) | 98,866) | 96,206) | 109,625) | |
| Operating lease right-of-use assets | 13,599) | 13,673) | 13,555) | 13,758) | 13,642) | 17,424) | |
| Property and equipment, including finance lease right-of-use assets, net (including operating lease, right-of-use asset) | 139,704) | 130,338) | 119,234) | 112,624) | 109,848) | 127,049) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.83 | 4.93 | 5.08 | 5.04 | 5.05 | 4.09 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Costco Wholesale Corp. | — | 7.55 | 7.74 | 7.67 | 7.01 | 6.48 | |
| Target Corp. | 2.90 | 2.95 | 3.19 | 3.45 | 3.21 | 2.74 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Consumer Staples Distribution & Retail | — | 5.00 | 5.17 | 5.20 | 5.06 | 4.21 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Staples | — | 4.57 | 4.68 | 4.69 | 4.55 | 3.90 | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property and equipment, including finance lease right-of-use assets, net (including operating lease, right-of-use asset)
= 674,538 ÷ 139,704 = 4.83
2 Click competitor name to see calculations.
- Net Sales Trend
- Net sales demonstrate a consistent upward trajectory over the covered periods. Starting from approximately 519.9 billion USD in January 2020, net sales increased steadily each year, reaching roughly 674.5 billion USD by January 2025. This growth reflects a sustained expansion in revenue generation, with no observed declines or plateaus in sales figures.
- Property and Equipment (including Finance Lease Right-of-Use Assets, Net)
- The net value of property and equipment including finance lease right-of-use assets shows a fluctuating but overall increasing pattern. Initially, there was a decline from about 127.0 billion USD in January 2020 to 109.8 billion USD in January 2021. Subsequently, the figure increased consistently year-over-year, reaching approximately 139.7 billion USD by January 2025. This suggests an initial contraction or disposals followed by reinvestment or asset additions.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures efficiency in generating sales from fixed assets, increased from 4.09 in January 2020 to a peak of about 5.08 in January 2023. However, after this peak, a gradual decline is observable, with the ratio falling to 4.83 by January 2025. While the ratio remains above the starting point, suggesting overall improved efficiency compared to the beginning of the timeframe, the recent downward trend may indicate diminishing returns on fixed assets or increased capital investment outpacing sales growth.
- Summary of Financial Efficiency and Investment
- Over the observed period, the company has expanded its asset base after an initial decrease, coinciding with steady net sales growth. The efficiency metric relating to asset usage shows improvement initially but has seen a moderate decline in the most recent years, signaling potential shifts in capital deployment or market conditions that might affect asset utilization. Continued monitoring of these trends is advisable to ensure that asset investments translate proportionally into sales increases.
Total Asset Turnover
Walmart Inc., total asset turnover calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 674,538) | 642,637) | 605,881) | 567,762) | 555,233) | 519,926) | |
| Total assets | 260,823) | 252,399) | 243,197) | 244,860) | 252,496) | 236,495) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 2.59 | 2.55 | 2.49 | 2.32 | 2.20 | 2.20 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 3.57 | 3.45 | 3.47 | 3.24 | 2.94 | |
| Target Corp. | 1.84 | 1.94 | 2.05 | 1.97 | 1.83 | 1.83 | |
| Total Asset Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 2.65 | 2.61 | 2.47 | 2.32 | 2.27 | |
| Total Asset Turnover, Industry | |||||||
| Consumer Staples | — | 1.56 | 1.51 | 1.47 | 1.41 | 1.32 | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 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).
1 2025 Calculation
Total asset turnover = Net sales ÷ Total assets
= 674,538 ÷ 260,823 = 2.59
2 Click competitor name to see calculations.
The financial data presents several key trends over the six-year period analyzed. The net sales show a consistent upward trajectory, increasing steadily each year from 519,926 million US dollars in 2020 to 674,538 million US dollars in 2025. This indicates sustained growth in revenue generation for the company.
Total assets experienced moderate fluctuations; there was an increase from 236,495 million US dollars in 2020 to 252,496 million US dollars in 2021, followed by a slight decline in 2022 and 2023 to 244,860 million and 243,197 million US dollars respectively. After this dip, total assets rose again to 252,399 million US dollars in 2024 and further to 260,823 million US dollars in 2025. This pattern suggests some variability in asset management or investment levels, but overall a gradual increase over the period.
The total asset turnover ratio demonstrates a positive trend, reflecting improving efficiency in using assets to generate sales. Starting at 2.2 in both 2020 and 2021, the ratio increased steadily to reach 2.59 by 2025. This upward movement implies that the company is utilizing its asset base more effectively to produce higher sales volumes over time.
- Net Sales
- Consistent annual growth, rising from 519,926 million US dollars in 2020 to 674,538 million US dollars in 2025, indicating strong and sustained revenue expansion.
- Total Assets
- General upward trend with minor declines in 2022 and 2023. Overall assets increased from 236,495 million US dollars in 2020 to 260,823 million US dollars in 2025, highlighting cautious asset growth and possible strategic adjustments.
- Total Asset Turnover Ratio
- Steady improvement from 2.2 in 2020 and 2021 to 2.59 in 2025, signifying enhanced efficiency in converting assets into revenue.
In summary, the data indicates a company that is growing its sales consistently while managing its asset base with some variability but improving overall asset efficiency. These trends together suggest effective operational performance and potentially successful strategic initiatives over the analyzed period.
Equity Turnover
Walmart Inc., equity turnover calculation, comparison to benchmarks
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 674,538) | 642,637) | 605,881) | 567,762) | 555,233) | 519,926) | |
| Total Walmart shareholders’ equity | 91,013) | 83,861) | 76,693) | 83,253) | 80,925) | 74,669) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 7.41 | 7.66 | 7.90 | 6.82 | 6.86 | 6.96 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 10.57 | 9.49 | 10.79 | 10.93 | 8.93 | |
| Target Corp. | 7.27 | 8.00 | 9.72 | 8.26 | 6.48 | 6.60 | |
| Equity Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 8.27 | 8.43 | 7.68 | 7.45 | 7.26 | |
| Equity Turnover, Industry | |||||||
| Consumer Staples | — | 5.66 | 5.62 | 5.26 | 5.06 | 4.98 | |
Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 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).
1 2025 Calculation
Equity turnover = Net sales ÷ Total Walmart shareholders’ equity
= 674,538 ÷ 91,013 = 7.41
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a consistent upward trend over the six-year period, increasing from $519,926 million in 2020 to $674,538 million in 2025. The growth was steady year-over-year, with particularly notable increments observed between 2022 and 2023 as well as continuing strong growth through 2024 and 2025.
- Total Walmart Shareholders’ Equity
- Shareholders’ equity showed fluctuations, starting at $74,669 million in 2020 and rising to $83,253 million by 2022, followed by a decline in 2023 to $76,693 million. However, equity rebounded in the following years, reaching $91,013 million by 2025. This fluctuation suggests a period of equity adjustment around 2023, before recovery and growth resumed.
- Equity Turnover Ratio
- The equity turnover ratio remained relatively stable between 2020 and 2022, hovering around the mid-6 range. A significant increase was observed in 2023, with the ratio peaking at 7.9, indicating more efficient use of equity to generate sales during that year. The ratio then slightly decreased in subsequent years but remained higher than the initial period, settling at 7.41 in 2025. This suggests an overall improvement in asset utilization relative to equity over the period analyzed.