Market Cap : 362.91 B | Enterprise Value : 414.65 B | PE Ratio : 27.11 | PB Ratio : 4.46 |
---|
NYSE:WMT has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NYSE:WMT has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Walmart's gross profit for the three months ended in Jan. 2021 was $36,818 Mil. Walmart's gross profit for the trailing twelve months (TTM) ended in Jan. 2021 was $138,836 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Walmart's gross profit for the three months ended in Jan. 2021 was $36,818 Mil. Walmart's Revenue for the three months ended in Jan. 2021 was $152,079 Mil. Therefore, Walmart's Gross Margin % for the quarter that ended in Jan. 2021 was 24.21%.
Walmart had a gross margin of 24.21% for the quarter that ended in Jan. 2021 => Competition eroding margins
During the past 13 years, the highest Gross Margin % of Walmart was 25.65%. The lowest was 24.69%. And the median was 24.91%.
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
* The bar in red indicates where Walmart's Gross Profit falls into.
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Walmart's Gross Profit for the fiscal year that ended in Jan. 2021 is calculated as
Gross Profit (A: Jan. 2021 ) | = | Revenue | - | Cost of Goods Sold |
= | 559151 | - | 420315 | |
= | 138,836 |
Walmart's Gross Profit for the quarter that ended in Jan. 2021 is calculated as
Gross Profit (Q: Jan. 2021 ) | = | Revenue | - | Cost of Goods Sold |
= | 152079 | - | 115261 | |
= | 36,818 |
Gross Profit for the trailing twelve months (TTM) ended in Jan. 2021 was 32596 (Apr. 2020 ) + 35053 (Jul. 2020 ) + 34369 (Oct. 2020 ) + 36818 (Jan. 2021 ) = $138,836 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Walmart's Gross Margin % for the quarter that ended in Jan. 2021 is calculated as
Gross Margin % (Q: Jan. 2021 ) | = | Gross Profit (Q: Jan. 2021 ) | / | Revenue (Q: Jan. 2021 ) |
= | (Revenue - Cost of Goods Sold) | / | Revenue | |
= | 36,818 | / | 152079 | |
= | 24.21 % |
* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Walmart had a gross margin of 24.21% for the quarter that ended in Jan. 2021 => Competition eroding margins
No Headline