Stock Analysis on Net

Walmart Inc. (NYSE:WMT)

Analysis of Profitability Ratios 

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

Walmart Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Return on Sales
Gross profit margin 24.44% 24.30% 24.10% 24.50% 24.68% 24.94%
Operating profit margin 4.57% 4.06% 3.96% 4.30% 4.12% 4.73%
Net profit margin 2.41% 2.43% 2.86% 1.31% 1.99% 2.83%
Return on Investment
Return on equity (ROE) 16.42% 16.69% 19.93% 9.20% 12.66% 17.54%
Return on assets (ROA) 5.58% 5.35% 6.29% 3.04% 4.82% 6.86%

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.