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Walmart Operating Income

: $22,548 Mil (TTM As of Jan. 2021)
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Walmart's Operating Income for the three months ended in Jan. 2021 was $5,487 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2021 was $22,548 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Walmart's Operating Income for the three months ended in Jan. 2021 was $5,487 Mil. Walmart's Revenue for the three months ended in Jan. 2021 was $152,079 Mil. Therefore, Walmart's Operating Margin % for the quarter that ended in Jan. 2021 was 3.61%.

Warning Sign:

Walmart Inc operating margin has been in 5-year decline. The average rate of decline per year is -4.4%.

Walmart's 5-Year average Growth Rate for Operating Margin % was -4.40% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Walmart's annualized ROC % for the quarter that ended in Jan. 2021 was 40.00%. Walmart's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2021 was -0.24%.


Walmart Operating Income Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.

* Premium members only.

Walmart Annual Data
Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22,764.00 20,437.00 21,957.00 20,568.00 22,548.00

Walmart Quarterly Data
Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5,322.00 5,224.00 6,059.00 5,778.00 5,487.00

Walmart Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jan. 2021 was 5224 (Apr. 2020 ) + 6059 (Jul. 2020 ) + 5778 (Oct. 2020 ) + 5487 (Jan. 2021 ) = $22,548 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.


Walmart  (NYSE:WMT) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Walmart's annualized ROC % for the quarter that ended in Jan. 2021 is calculated as:

ROC % (Q: Jan. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2020 ) + Invested Capital (Q: Jan. 2021 ))/ count )
=21948 * ( 1 - -238.62% )/( (184158 + 187467)/ 2 )
=74320.3176/185812.5
=40.00 %

where

Note: The Operating Income data used here is four times the quarterly (Jan. 2021) data.

2. Joel Greenblatt's definition of Return on Capital:

Walmart's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2021 is calculated as:

ROC (Joel Greenblatt) %(Q: Jan. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2020  Q: Jan. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-276/( ( (124289 + max(-21947, 0)) + (109848 + max(-15023, 0)) )/ 2 )
=-276/( ( 124289 + 109848 )/ 2 )
=-276/117068.5
=-0.24 %

where Working Capital is:

Working Capital(Q: Oct. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5770 + 51842 + 1665) - (81224 + 0 + 0)
=-21947

Working Capital(Q: Jan. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(6516 + 44949 + 20861) - (67607 + 2310 + 17432)
=-15023

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jan. 2021) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Walmart's Operating Margin % for the quarter that ended in Jan. 2021 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2021 )/Revenue (Q: Jan. 2021 )
=5487/152079
=3.61 %

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Walmart Operating Income Related Terms


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