Microsoft Excel LibreOffice Calc

Walmart Inc. (WMT)

Profitability Analysis

Difficulty: Beginner

  • Annual Data
  • Quarterly Data

    • Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).

    Ratios (Summary)

    Walmart Inc., profitability ratios

    Microsoft Excel LibreOffice Calc
    Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014 Jan 31, 2013
    Return on Sales
    Gross profit margin 24.68% 24.94% 24.58% 24.29% 24.31% 24.38%
    Operating profit margin 4.12% 4.73% 5.04% 5.63% 5.68% 5.96%
    Net profit margin 1.99% 2.83% 3.07% 3.39% 3.39% 3.65%
    Return on Investment
    Return on equity (ROE) 12.66% 17.54% 18.24% 20.10% 21.01% 22.27%
    Return on assets (ROA) 4.82% 6.86% 7.36% 8.03% 7.83% 8.37%

    Source: Based on data from Walmart Inc. Annual Reports

    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 improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.
    Operating profit margin A profitability ratio calculated as operating income divided by revenue. Walmart Inc.'s operating profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.
    Net profit margin An indicator of profitability, calculated as net income divided by revenue. Walmart Inc.'s net profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.
    ROE A profitability ratio calculated as net income divided by shareholders' equity. Walmart Inc.'s ROE deteriorated from 2016 to 2017 and from 2017 to 2018.
    ROA A profitability ratio calculated as net income divided by total assets. Walmart Inc.'s ROA deteriorated from 2016 to 2017 and from 2017 to 2018.

    Gross Profit Margin

    Walmart Inc., gross profit margin calculation

    Microsoft Excel LibreOffice Calc
    Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014 Jan 31, 2013
    Selected Financial Data (USD $ in millions)
    Gross profit 122,365  120,061  117,630  117,143  115,007  113,626 
    Net sales 495,761  481,317  478,614  482,229  473,076  466,114 
    Ratio
    Gross profit margin1 24.68% 24.94% 24.58% 24.29% 24.31% 24.38%
    Benchmarks
    Gross Profit Margin, Competitors
    Amazon.com Inc. –% 37.07% 35.09% 33.04% 29.48% 27.23%
    Costco Wholesale Corp. –% 11.33% 11.35% 11.09% 10.66% 10.62%
    eBay Inc. –% 76.77% 77.65% 79.39% 67.98% 68.62%
    Home Depot Inc. 34.05% 34.16% 34.19% 34.81% 34.75% 34.57%
    Lowe's Cos. Inc. 34.11% 34.55% 34.82% 34.79% 34.59% 34.30%
    Netflix Inc. –% 34.49% 31.72% 32.27% 31.83% 29.52%
    Target Corp. 28.87% 29.68% 29.53% 29.39% 29.53% 29.73%
    TJX Cos. Inc. 28.89% 28.98% 28.79% 28.55% 28.51% 28.43%

    Source: Based on data from Walmart Inc. Annual Reports

    2018 Calculations

    1 Gross profit margin = 100 × Gross profit ÷ Net sales
    = 100 × 122,365 ÷ 495,761 = 24.68%

    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 improved from 2016 to 2017 but then slightly deteriorated from 2017 to 2018 not reaching 2016 level.

    Operating Profit Margin

    Walmart Inc., operating profit margin calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014 Jan 31, 2013
    Selected Financial Data (USD $ in millions)
    Operating income 20,437  22,764  24,105  27,147  26,872  27,801 
    Net sales 495,761  481,317  478,614  482,229  473,076  466,114 
    Ratio
    Operating profit margin1 4.12% 4.73% 5.04% 5.63% 5.68% 5.96%
    Benchmarks
    Operating Profit Margin, Competitors
    Amazon.com Inc. –% 2.31% 3.08% 2.09% 0.20% 1.00%
    Costco Wholesale Corp. –% 3.26% 3.16% 3.19% 2.92% 2.97%
    eBay Inc. –% 23.68% 25.89% 25.57% 19.63% 21.01%
    Home Depot Inc. 14.55% 14.19% 13.30% 12.59% 11.63% 10.39%
    Lowe's Cos. Inc. 9.60% 8.99% 8.41% 8.52% 7.77% 7.05%
    Netflix Inc. –% 7.17% 4.30% 4.51% 7.31% 5.22%
    Target Corp. 6.00% 7.15% 7.49% 6.25% 5.83% 7.46%
    TJX Cos. Inc. 10.84% 11.60% 11.97% 12.40% 12.22% 12.00%
    Operating Profit Margin, Sector
    General Retailers –% 5.82% 6.06% 6.14% 5.94% 6.20%
    Operating Profit Margin, Industry
    Consumer Services –% 8.57% 8.70% 8.88% 8.40% 8.36%

    Source: Based on data from Walmart Inc. Annual Reports

    2018 Calculations

    1 Operating profit margin = 100 × Operating income ÷ Net sales
    = 100 × 20,437 ÷ 495,761 = 4.12%

    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 2016 to 2017 and from 2017 to 2018.

    Net Profit Margin

    Walmart Inc., net profit margin calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014 Jan 31, 2013
    Selected Financial Data (USD $ in millions)
    Consolidated net income attributable to Walmart 9,862  13,643  14,694  16,363  16,022  16,999 
    Net sales 495,761  481,317  478,614  482,229  473,076  466,114 
    Ratio
    Net profit margin1 1.99% 2.83% 3.07% 3.39% 3.39% 3.65%
    Benchmarks
    Net Profit Margin, Competitors
    Amazon.com Inc. –% 1.71% 1.74% 0.56% -0.27% 0.37%
    Costco Wholesale Corp. –% 2.12% 2.02% 2.09% 1.87% 1.98%
    eBay Inc. –% -10.62% 80.92% 20.08% 0.26% 17.80%
    Home Depot Inc. 8.55% 8.41% 7.92% 7.63% 6.83% 6.07%
    Lowe's Cos. Inc. 5.02% 4.76% 4.31% 4.80% 4.28% 3.88%
    Netflix Inc. –% 4.78% 2.11% 1.81% 4.85% 2.57%
    Target Corp. 4.08% 3.94% 4.56% -2.25% 2.72% 4.17%
    TJX Cos. Inc. 7.27% 6.93% 7.36% 7.62% 7.79% 7.37%
    Net Profit Margin, Sector
    General Retailers –% 3.27% 4.20% 3.21% 3.23% 3.80%
    Net Profit Margin, Industry
    Consumer Services –% 6.20% 5.66% 5.37% 4.78% 5.95%

    Source: Based on data from Walmart Inc. Annual Reports

    2018 Calculations

    1 Net profit margin = 100 × Consolidated net income attributable to Walmart ÷ Net sales
    = 100 × 9,862 ÷ 495,761 = 1.99%

    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 2016 to 2017 and from 2017 to 2018.

    Return on Equity (ROE)

    Walmart Inc., ROE calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014 Jan 31, 2013
    Selected Financial Data (USD $ in millions)
    Consolidated net income attributable to Walmart 9,862  13,643  14,694  16,363  16,022  16,999 
    Total Walmart shareholders' equity 77,869  77,798  80,546  81,394  76,255  76,343 
    Ratio
    ROE1 12.66% 17.54% 18.24% 20.10% 21.01% 22.27%
    Benchmarks
    ROE, Competitors
    Amazon.com Inc. –% 10.95% 12.29% 4.45% -2.24% 2.81%
    Costco Wholesale Corp. –% 24.86% 19.46% 22.39% 16.73% 18.82%
    eBay Inc. –% -12.60% 68.94% 26.23% 0.23% 12.08%
    Home Depot Inc. 593.54% 183.64% 110.97% 68.06% 43.00% 25.51%
    Lowe's Cos. Inc. 58.69% 48.07% 33.26% 27.07% 19.29% 14.14%
    Netflix Inc. –% 15.60% 6.97% 5.52% 14.36% 8.43%
    Target Corp. 25.06% 24.99% 25.96% -11.69% 12.14% 18.11%
    TJX Cos. Inc. 50.66% 50.95% 52.88% 51.95% 50.53% 52.01%
    ROE, Sector
    General Retailers –% 22.69% 26.90% 20.30% 18.04% 19.38%
    ROE, Industry
    Consumer Services –% 25.44% 22.38% 22.07% 18.07% 20.74%

    Source: Based on data from Walmart Inc. Annual Reports

    2018 Calculations

    1 ROE = 100 × Consolidated net income attributable to Walmart ÷ Total Walmart shareholders' equity
    = 100 × 9,862 ÷ 77,869 = 12.66%

    Ratio Description The company
    ROE A profitability ratio calculated as net income divided by shareholders' equity. Walmart Inc.'s ROE deteriorated from 2016 to 2017 and from 2017 to 2018.

    Return on Assets (ROA)

    Walmart Inc., ROA calculation, comparison to benchmarks

    Microsoft Excel LibreOffice Calc
    Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014 Jan 31, 2013
    Selected Financial Data (USD $ in millions)
    Consolidated net income attributable to Walmart 9,862  13,643  14,694  16,363  16,022  16,999 
    Total assets 204,522  198,825  199,581  203,706  204,751  203,105 
    Ratio
    ROA1 4.82% 6.86% 7.36% 8.03% 7.83% 8.37%
    Benchmarks
    ROA, Competitors
    Amazon.com Inc. –% 2.31% 2.84% 0.91% -0.44% 0.68%
    Costco Wholesale Corp. –% 7.37% 7.09% 7.11% 6.23% 6.73%
    eBay Inc. –% -3.91% 30.47% 9.70% 0.10% 6.88%
    Home Depot Inc. 19.38% 18.52% 16.47% 15.88% 13.29% 11.04%
    Lowe's Cos. Inc. 9.77% 8.99% 8.14% 8.48% 6.98% 6.00%
    Netflix Inc. –% 2.94% 1.37% 1.20% 3.78% 2.08%
    Target Corp. 7.52% 7.31% 8.35% -3.95% 4.42% 6.23%
    TJX Cos. Inc. 18.55% 17.84% 19.81% 19.91% 20.95% 20.05%
    ROA, Sector
    General Retailers –% 6.49% 8.78% 6.77% 6.34% 7.45%
    ROA, Industry
    Consumer Services –% 7.93% 7.22% 7.36% 6.56% 8.05%

    Source: Based on data from Walmart Inc. Annual Reports

    2018 Calculations

    1 ROA = 100 × Consolidated net income attributable to Walmart ÷ Total assets
    = 100 × 9,862 ÷ 204,522 = 4.82%

    Ratio Description The company
    ROA A profitability ratio calculated as net income divided by total assets. Walmart Inc.'s ROA deteriorated from 2016 to 2017 and from 2017 to 2018.