Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Walmart Inc., profitability ratios
Based on: 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), 10-K (reporting date: 2017-01-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Walmart Inc. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Walmart Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Walmart Inc. net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Walmart Inc. ROE deteriorated from 2020 to 2021 and from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Walmart Inc. ROA deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Gross Profit Margin
Walmart Inc., gross profit margin calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 138,762 | 134,918 | 125,321 | 125,028 | 122,365 | 120,061 | |
| Net sales | 567,762 | 555,233 | 519,926 | 510,329 | 495,761 | 481,317 | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 24.44% | 24.30% | 24.10% | 24.50% | 24.68% | 24.94% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 11.13% | 11.20% | 11.02% | 11.04% | 11.33% | |
Based on: 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), 10-K (reporting date: 2017-01-31).
1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 138,762 ÷ 567,762 = 24.44%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Walmart Inc. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Walmart Inc., operating profit margin calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 25,942 | 22,548 | 20,568 | 21,957 | 20,437 | 22,764 | |
| Net sales | 567,762 | 555,233 | 519,926 | 510,329 | 495,761 | 481,317 | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 4.57% | 4.06% | 3.96% | 4.30% | 4.12% | 4.73% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 3.49% | 3.33% | 3.17% | 3.24% | 3.26% | |
| Operating Profit Margin, Sector | |||||||
| Food & Staples Retailing | — | 3.91% | 3.81% | 4.05% | 3.93% | 4.42% | |
| Operating Profit Margin, Industry | |||||||
| Consumer Staples | — | 9.08% | 8.84% | 8.04% | 8.75% | 9.26% | |
Based on: 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), 10-K (reporting date: 2017-01-31).
1 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 25,942 ÷ 567,762 = 4.57%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Walmart Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Profit Margin
Walmart Inc., net profit margin calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Consolidated net income attributable to Walmart | 13,673 | 13,510 | 14,881 | 6,670 | 9,862 | 13,643 | |
| Net sales | 567,762 | 555,233 | 519,926 | 510,329 | 495,761 | 481,317 | |
| Profitability Ratio | |||||||
| Net profit margin1 | 2.41% | 2.43% | 2.86% | 1.31% | 1.99% | 2.83% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 2.61% | 2.45% | 2.45% | 2.26% | 2.12% | |
| Net Profit Margin, Sector | |||||||
| Food & Staples Retailing | — | 2.48% | 2.76% | 1.57% | 2.05% | 2.69% | |
| Net Profit Margin, Industry | |||||||
| Consumer Staples | — | 6.13% | 6.37% | 4.19% | 6.46% | 6.32% | |
Based on: 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), 10-K (reporting date: 2017-01-31).
1 2022 Calculation
Net profit margin = 100 × Consolidated net income attributable to Walmart ÷ Net sales
= 100 × 13,673 ÷ 567,762 = 2.41%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Walmart Inc. net profit margin ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Return on Equity (ROE)
Walmart Inc., ROE calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Consolidated net income attributable to Walmart | 13,673 | 13,510 | 14,881 | 6,670 | 9,862 | 13,643 | |
| Total Walmart shareholders’ equity | 83,253 | 80,925 | 74,669 | 72,496 | 77,869 | 77,798 | |
| Profitability Ratio | |||||||
| ROE1 | 16.42% | 16.69% | 19.93% | 9.20% | 12.66% | 17.54% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 28.51% | 21.89% | 24.00% | 24.49% | 24.86% | |
| ROE, Sector | |||||||
| Food & Staples Retailing | — | 18.80% | 20.31% | 11.77% | 14.33% | 18.43% | |
| ROE, Industry | |||||||
| Consumer Staples | — | 32.97% | 33.07% | 21.10% | 29.62% | 28.31% | |
Based on: 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), 10-K (reporting date: 2017-01-31).
1 2022 Calculation
ROE = 100 × Consolidated net income attributable to Walmart ÷ Total Walmart shareholders’ equity
= 100 × 13,673 ÷ 83,253 = 16.42%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Walmart Inc. ROE deteriorated from 2020 to 2021 and from 2021 to 2022. |
Return on Assets (ROA)
Walmart Inc., ROA calculation, comparison to benchmarks
| Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Consolidated net income attributable to Walmart | 13,673 | 13,510 | 14,881 | 6,670 | 9,862 | 13,643 | |
| Total assets | 244,860 | 252,496 | 236,495 | 219,295 | 204,522 | 198,825 | |
| Profitability Ratio | |||||||
| ROA1 | 5.58% | 5.35% | 6.29% | 3.04% | 4.82% | 6.86% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 8.45% | 7.20% | 8.06% | 7.68% | 7.37% | |
| ROA, Sector | |||||||
| Food & Staples Retailing | — | 5.94% | 6.47% | 3.90% | 5.30% | 6.94% | |
| ROA, Industry | |||||||
| Consumer Staples | — | 8.63% | 8.35% | 5.73% | 8.78% | 8.47% | |
Based on: 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), 10-K (reporting date: 2017-01-31).
1 2022 Calculation
ROA = 100 × Consolidated net income attributable to Walmart ÷ Total assets
= 100 × 13,673 ÷ 244,860 = 5.58%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Walmart Inc. ROA deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |