Stock Analysis on Net

Walmart Inc. (NYSE:WMT)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Walmart Inc., short-term (operating) activity ratios

Microsoft Excel
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Turnover Ratios
Inventory turnover 7.59 9.35 8.88 8.70 8.53 8.39
Receivables turnover 68.57 85.21 82.74 81.22 88.31 82.49
Payables turnover 7.76 8.55 8.40 8.19 8.10 8.72
Working capital turnover
Average No. Days
Average inventory processing period 48 39 41 42 43 43
Add: Average receivable collection period 5 4 4 4 4 4
Operating cycle 53 43 45 46 47 47
Less: Average payables payment period 47 43 43 45 45 42
Cash conversion cycle 6 0 2 1 2 5

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Walmart Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Receivables turnover An activity ratio equal to revenue divided by receivables. Walmart Inc. receivables turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Walmart Inc. payables turnover ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Walmart Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Walmart Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Walmart Inc. cash conversion cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Inventory Turnover

Walmart Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data (US$ in millions)
Cost of sales 429,000  420,315  394,605  385,301  373,396  361,256 
Inventories 56,511  44,949  44,435  44,269  43,783  43,046 
Short-term Activity Ratio
Inventory turnover1 7.59 9.35 8.88 8.70 8.53 8.39
Benchmarks
Inventory Turnover, Competitors2
Costco Wholesale Corp. 12.01 11.84 11.66 11.16 11.38
Inventory Turnover, Sector
Food & Staples Retailing 9.99 9.52 9.31 9.06 8.95
Inventory Turnover, Industry
Consumer Staples 8.40 7.89 7.88 7.79 7.71

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
Inventory turnover = Cost of sales ÷ Inventories
= 429,000 ÷ 56,511 = 7.59

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Walmart Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Receivables Turnover

Walmart Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data (US$ in millions)
Net sales 567,762  555,233  519,926  510,329  495,761  481,317 
Receivables, net 8,280  6,516  6,284  6,283  5,614  5,835 
Short-term Activity Ratio
Receivables turnover1 68.57 85.21 82.74 81.22 88.31 82.49
Benchmarks
Receivables Turnover, Competitors2
Costco Wholesale Corp. 106.52 105.30 97.30 82.94 88.11
Receivables Turnover, Sector
Food & Staples Retailing 89.83 87.20 84.38 87.08 83.60
Receivables Turnover, Industry
Consumer Staples 34.29 33.38 31.34 32.59 30.79

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
Receivables turnover = Net sales ÷ Receivables, net
= 567,762 ÷ 8,280 = 68.57

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Walmart Inc. receivables turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Payables Turnover

Walmart Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data (US$ in millions)
Cost of sales 429,000  420,315  394,605  385,301  373,396  361,256 
Accounts payable 55,261  49,141  46,973  47,060  46,092  41,433 
Short-term Activity Ratio
Payables turnover1 7.76 8.55 8.40 8.19 8.10 8.72
Benchmarks
Payables Turnover, Competitors2
Costco Wholesale Corp. 10.49 10.23 11.38 10.96 11.64
Payables Turnover, Sector
Food & Staples Retailing 9.03 8.82 8.82 8.66 9.27
Payables Turnover, Industry
Consumer Staples 6.83 6.83 6.93 7.02 7.39

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
Payables turnover = Cost of sales ÷ Accounts payable
= 429,000 ÷ 55,261 = 7.76

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Walmart Inc. payables turnover ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Working Capital Turnover

Walmart Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data (US$ in millions)
Current assets 81,070  90,067  61,806  61,897  59,664  57,689 
Less: Current liabilities 87,379  92,645  77,790  77,477  78,521  66,928 
Working capital (6,309) (2,578) (15,984) (15,580) (18,857) (9,239)
 
Net sales 567,762  555,233  519,926  510,329  495,761  481,317 
Short-term Activity Ratio
Working capital turnover1
Benchmarks
Working Capital Turnover, Competitors2
Costco Wholesale Corp. 3,000.81 49.82 602.22 381.36
Working Capital Turnover, Sector
Food & Staples Retailing
Working Capital Turnover, Industry
Consumer Staples 213.43

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
Working capital turnover = Net sales ÷ Working capital
= 567,762 ÷ -6,309 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

Walmart Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data
Inventory turnover 7.59 9.35 8.88 8.70 8.53 8.39
Short-term Activity Ratio (no. days)
Average inventory processing period1 48 39 41 42 43 43
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Costco Wholesale Corp. 30 31 31 33 32
Average Inventory Processing Period, Sector
Food & Staples Retailing 37 38 39 40 41
Average Inventory Processing Period, Industry
Consumer Staples 43 46 46 47 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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 7.59 = 48

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Walmart Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Average Receivable Collection Period

Walmart Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data
Receivables turnover 68.57 85.21 82.74 81.22 88.31 82.49
Short-term Activity Ratio (no. days)
Average receivable collection period1 5 4 4 4 4 4
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Costco Wholesale Corp. 3 3 4 4 4
Average Receivable Collection Period, Sector
Food & Staples Retailing 4 4 4 4 4
Average Receivable Collection Period, Industry
Consumer Staples 11 11 12 11 12

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 68.57 = 5

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Walmart Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data
Average inventory processing period 48 39 41 42 43 43
Average receivable collection period 5 4 4 4 4 4
Short-term Activity Ratio
Operating cycle1 53 43 45 46 47 47
Benchmarks
Operating Cycle, Competitors2
Costco Wholesale Corp. 33 34 35 37 36
Operating Cycle, Sector
Food & Staples Retailing 41 42 43 44 45
Operating Cycle, Industry
Consumer Staples 54 57 58 58 59

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 cycle = Average inventory processing period + Average receivable collection period
= 48 + 5 = 53

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Walmart Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Average Payables Payment Period

Walmart Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data
Payables turnover 7.76 8.55 8.40 8.19 8.10 8.72
Short-term Activity Ratio (no. days)
Average payables payment period1 47 43 43 45 45 42
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Costco Wholesale Corp. 35 36 32 33 31
Average Payables Payment Period, Sector
Food & Staples Retailing 40 41 41 42 39
Average Payables Payment Period, Industry
Consumer Staples 53 53 53 52 49

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.76 = 47

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Cash Conversion Cycle

Walmart Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jan 31, 2022 Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017
Selected Financial Data
Average inventory processing period 48 39 41 42 43 43
Average receivable collection period 5 4 4 4 4 4
Average payables payment period 47 43 43 45 45 42
Short-term Activity Ratio
Cash conversion cycle1 6 0 2 1 2 5
Benchmarks
Cash Conversion Cycle, Competitors2
Costco Wholesale Corp. -2 -2 3 4 5
Cash Conversion Cycle, Sector
Food & Staples Retailing 1 1 2 2 6
Cash Conversion Cycle, Industry
Consumer Staples 1 4 5 6 10

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 48 + 547 = 6

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Walmart Inc. cash conversion cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.