Microsoft Excel LibreOffice Calc

Walmart Inc. (WMT)


Profitability Analysis

Difficulty: Beginner


Ratios (Summary)

Walmart Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016 Jan 31, 2015 Jan 31, 2014
Return on Sales
Gross profit margin 24.50% 24.68% 24.94% 24.58% 24.29% 24.31%
Operating profit margin 4.30% 4.12% 4.73% 5.04% 5.63% 5.68%
Net profit margin 1.31% 1.99% 2.83% 3.07% 3.39% 3.39%
Return on Investment
Return on equity (ROE) 9.20% 12.66% 17.54% 18.24% 20.10% 21.01%
Return on assets (ROA) 3.04% 4.82% 6.86% 7.36% 8.03% 7.83%

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.