Walmart Inc. (WMT)
Profitability Analysis
Difficulty: Beginner
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Ratios (Summary)
Walmart Inc., profitability ratios
Based on: 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), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21).
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Walmart Inc.’s gross profit margin deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Walmart Inc.’s operating profit margin deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Walmart Inc.’s net profit margin deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Walmart Inc.’s ROE deteriorated from 2017 to 2018 and from 2018 to 2019. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Walmart Inc.’s ROA deteriorated from 2017 to 2018 and from 2018 to 2019. |
Gross Profit Margin
Walmart Inc., gross profit margin calculation, comparison to benchmarks
| Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | Jan 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 125,028 | 122,365 | 120,061 | 117,630 | 117,143 | 115,007 | |
| Net sales | 510,329 | 495,761 | 481,317 | 478,614 | 482,229 | 473,076 | |
| Ratio | |||||||
| Gross profit margin1 | 24.50% | 24.68% | 24.94% | 24.58% | 24.29% | 24.31% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 40.25% | 37.07% | 35.09% | 33.04% | 29.48% | |
| Costco Wholesale Corp. | — | 11.04% | 11.33% | 11.35% | 11.09% | 10.66% | |
| eBay Inc. | — | 77.83% | 76.77% | 77.65% | 79.39% | 67.98% | |
| Home Depot Inc. | 34.34% | 34.05% | 34.16% | 34.19% | 34.81% | 34.75% | |
| Lowe’s Cos. Inc. | 32.12% | 34.11% | 34.55% | 34.82% | 34.79% | 34.59% | |
| Netflix Inc. | — | 36.89% | 34.49% | 31.72% | 32.27% | 31.83% | |
| Target Corp. | 28.39% | 28.87% | 29.68% | 29.53% | 29.39% | 29.53% | |
| TJX Cos. Inc. | 28.59% | 28.89% | 28.98% | 28.79% | 28.55% | 28.51% | |
Based on: 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), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21).
1 2019 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 125,028 ÷ 510,329 = 24.50%
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Walmart Inc.’s gross profit margin deteriorated from 2017 to 2018 and from 2018 to 2019. |
Operating Profit Margin
Walmart Inc., operating profit margin calculation, comparison to benchmarks
| Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | Jan 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 21,957 | 20,437 | 22,764 | 24,105 | 27,147 | 26,872 | |
| Net sales | 510,329 | 495,761 | 481,317 | 478,614 | 482,229 | 473,076 | |
| Ratio | |||||||
| Operating profit margin1 | 4.30% | 4.12% | 4.73% | 5.04% | 5.63% | 5.68% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 5.33% | 2.31% | 3.08% | 2.09% | 0.20% | |
| Costco Wholesale Corp. | — | 3.24% | 3.26% | 3.16% | 3.19% | 2.92% | |
| eBay Inc. | — | 20.68% | 23.68% | 25.89% | 25.57% | 19.63% | |
| Home Depot Inc. | 14.35% | 14.55% | 14.19% | 13.30% | 12.59% | 11.63% | |
| Lowe’s Cos. Inc. | 5.63% | 9.60% | 8.99% | 8.41% | 8.52% | 7.77% | |
| Netflix Inc. | — | 10.16% | 7.17% | 4.30% | 4.51% | 7.31% | |
| Target Corp. | 5.52% | 6.00% | 7.15% | 7.49% | 6.25% | 5.83% | |
| TJX Cos. Inc. | 10.82% | 10.84% | 11.60% | 11.97% | 12.40% | 12.22% | |
| Operating Profit Margin, Sector | |||||||
| General Retailers | — | 6.03% | 5.82% | 6.06% | 6.14% | 5.94% | |
| Operating Profit Margin, Industry | |||||||
| Consumer Services | — | 8.01% | 8.35% | 8.49% | 8.65% | 8.19% | |
Based on: 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), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21).
1 2019 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 21,957 ÷ 510,329 = 4.30%
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Walmart Inc.’s operating profit margin deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Net Profit Margin
Walmart Inc., net profit margin calculation, comparison to benchmarks
| Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | Jan 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Consolidated net income attributable to Walmart | 6,670 | 9,862 | 13,643 | 14,694 | 16,363 | 16,022 | |
| Net sales | 510,329 | 495,761 | 481,317 | 478,614 | 482,229 | 473,076 | |
| Ratio | |||||||
| Net profit margin1 | 1.31% | 1.99% | 2.83% | 3.07% | 3.39% | 3.39% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 4.33% | 1.71% | 1.74% | 0.56% | -0.27% | |
| Costco Wholesale Corp. | — | 2.26% | 2.12% | 2.02% | 2.09% | 1.87% | |
| eBay Inc. | — | 23.54% | -10.62% | 80.92% | 20.08% | 0.26% | |
| Home Depot Inc. | 10.28% | 8.55% | 8.41% | 7.92% | 7.63% | 6.83% | |
| Lowe’s Cos. Inc. | 3.25% | 5.02% | 4.76% | 4.31% | 4.80% | 4.28% | |
| Netflix Inc. | — | 7.67% | 4.78% | 2.11% | 1.81% | 4.85% | |
| Target Corp. | 3.95% | 4.08% | 3.94% | 4.56% | -2.25% | 2.72% | |
| TJX Cos. Inc. | 7.85% | 7.27% | 6.93% | 7.36% | 7.62% | 7.79% | |
| Net Profit Margin, Sector | |||||||
| General Retailers | — | 3.79% | 3.27% | 4.20% | 3.21% | 3.23% | |
| Net Profit Margin, Industry | |||||||
| Consumer Services | — | 5.21% | 6.13% | 5.59% | 4.91% | 4.57% | |
Based on: 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), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21).
1 2019 Calculation
Net profit margin = 100 × Consolidated net income attributable to Walmart ÷ Net sales
= 100 × 6,670 ÷ 510,329 = 1.31%
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Walmart Inc.’s net profit margin deteriorated from 2017 to 2018 and from 2018 to 2019. |
Return on Equity (ROE)
Walmart Inc., ROE calculation, comparison to benchmarks
| Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | Jan 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Consolidated net income attributable to Walmart | 6,670 | 9,862 | 13,643 | 14,694 | 16,363 | 16,022 | |
| Total Walmart shareholders’ equity | 72,496 | 77,869 | 77,798 | 80,546 | 81,394 | 76,255 | |
| Ratio | |||||||
| ROE1 | 9.20% | 12.66% | 17.54% | 18.24% | 20.10% | 21.01% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Amazon.com Inc. | — | 23.13% | 10.95% | 12.29% | 4.45% | -2.24% | |
| Costco Wholesale Corp. | — | 24.49% | 24.86% | 19.46% | 22.39% | 16.73% | |
| eBay Inc. | — | 40.28% | -12.60% | 68.94% | 26.23% | 0.23% | |
| Home Depot Inc. | — | 593.54% | 183.64% | 110.97% | 68.06% | 43.00% | |
| Lowe’s Cos. Inc. | 63.50% | 58.69% | 48.07% | 33.26% | 27.07% | 19.29% | |
| Netflix Inc. | — | 23.12% | 15.60% | 6.97% | 5.52% | 14.36% | |
| Target Corp. | 26.00% | 25.06% | 24.99% | 25.96% | -11.69% | 12.14% | |
| TJX Cos. Inc. | 60.61% | 50.66% | 50.95% | 52.88% | 51.95% | 50.53% | |
| ROE, Sector | |||||||
| General Retailers | — | 26.15% | 22.69% | 26.90% | 20.30% | 18.04% | |
| ROE, Industry | |||||||
| Consumer Services | — | 22.00% | 25.70% | 22.46% | 20.77% | 17.69% | |
Based on: 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), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21).
1 2019 Calculation
ROE = 100 × Consolidated net income attributable to Walmart ÷ Total Walmart shareholders’ equity
= 100 × 6,670 ÷ 72,496 = 9.20%
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Walmart Inc.’s ROE deteriorated from 2017 to 2018 and from 2018 to 2019. |
Return on Assets (ROA)
Walmart Inc., ROA calculation, comparison to benchmarks
| Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | Jan 31, 2015 | Jan 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Consolidated net income attributable to Walmart | 6,670 | 9,862 | 13,643 | 14,694 | 16,363 | 16,022 | |
| Total assets | 219,295 | 204,522 | 198,825 | 199,581 | 203,706 | 204,751 | |
| Ratio | |||||||
| ROA1 | 3.04% | 4.82% | 6.86% | 7.36% | 8.03% | 7.83% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Amazon.com Inc. | — | 6.19% | 2.31% | 2.84% | 0.91% | -0.44% | |
| Costco Wholesale Corp. | — | 7.68% | 7.37% | 7.09% | 7.11% | 6.23% | |
| eBay Inc. | — | 11.09% | -3.91% | 30.47% | 9.70% | 0.10% | |
| Home Depot Inc. | 25.27% | 19.38% | 18.52% | 16.47% | 15.88% | 13.29% | |
| Lowe’s Cos. Inc. | 6.71% | 9.77% | 8.99% | 8.14% | 8.48% | 6.98% | |
| Netflix Inc. | — | 4.66% | 2.94% | 1.37% | 1.20% | 3.78% | |
| Target Corp. | 7.11% | 7.52% | 7.31% | 8.35% | -3.95% | 4.42% | |
| TJX Cos. Inc. | 21.36% | 18.55% | 17.84% | 19.81% | 19.91% | 20.95% | |
| ROA, Sector | |||||||
| General Retailers | — | 7.53% | 6.49% | 8.78% | 6.77% | 6.34% | |
| ROA, Industry | |||||||
| Consumer Services | — | 6.25% | 8.02% | 7.28% | 6.91% | 6.46% | |
Based on: 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), 10-K (filing date: 2015-04-01), 10-K (filing date: 2014-03-21).
1 2019 Calculation
ROA = 100 × Consolidated net income attributable to Walmart ÷ Total assets
= 100 × 6,670 ÷ 219,295 = 3.04%
2 Click competitor name to see calculations.
| Ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Walmart Inc.’s ROA deteriorated from 2017 to 2018 and from 2018 to 2019. |