GURUFOCUS.COM » STOCK LIST » USA » NYSE » Walmart Inc (NYSE:WMT) » Definitions » ROE %
Switch to:

Walmart (NYSE:WMT) ROE %

: -9.60% (As of Oct. 2022)
View and export this data going back to 1970. Start your Free Trial

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Walmart's annualized net income for the quarter that ended in Oct. 2022 was $-7,192 Mil. Walmart's average Total Stockholders Equity over the quarter that ended in Oct. 2022 was $74,911 Mil. Therefore, Walmart's annualized ROE % for the quarter that ended in Oct. 2022 was -9.60%.

The historical rank and industry rank for Walmart's ROE % or its related term are showing as below:

WMT' s ROE % Range Over the Past 10 Years
Min: 8.87   Med: 17.76   Max: 23.02
Current: 11.43

During the past 13 years, Walmart's highest ROE % was 23.02%. The lowest was 8.87%. And the median was 17.76%.

WMT's ROE % is ranked better than
59.37% of 288 companies
in the Retail - Defensive industry
Industry Median: 8.97 vs WMT: 11.43

Walmart (NYSE:WMT) ROE % Historical Data

The historical data trend for Walmart's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Walmart Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.67 8.87 20.22 17.37 16.66

Walmart Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22
ROE % 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 15.26 17.22 10.26 26.67 -9.60

Walmart (NYSE:WMT) ROE % Competitive Comparison

For the Discount Stores subindustry, Walmart's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Walmart (NYSE:WMT) ROE % Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Walmart's ROE % distribution charts can be found below:

* The bar in red indicates where Walmart's ROE % falls into.



Walmart ROE % Calculation

Walmart's annualized ROE % for the fiscal year that ended in Jan. 2022 is calculated as

ROE %=Net Income (A: Jan. 2022 )/( (Total Stockholders Equity (A: Jan. 2021 )+Total Stockholders Equity (A: Jan. 2022 ))/ count )
=13673/( (80925+83253)/ 2 )
=13673/82089
=16.66 %

Walmart's annualized ROE % for the quarter that ended in Oct. 2022 is calculated as

ROE %=Net Income (Q: Oct. 2022 )/( (Total Stockholders Equity (Q: Jul. 2022 )+Total Stockholders Equity (Q: Oct. 2022 ))/ count )
=-7192/( (77569+72253)/ 2 )
=-7192/74911
=-9.60 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Oct. 2022) net income data. ROE % is displayed in the 30-year financial page.


Walmart  (NYSE:WMT) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Oct. 2022 )
=Net Income/Total Stockholders Equity
=-7192/74911
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-7192 / 611252)*(611252 / 247427.5)*(247427.5 / 74911)
=Net Margin %*Asset Turnover*Equity Multiplier
=-1.18 %*2.4704*3.303
=ROA %*Equity Multiplier
=-2.92 %*3.303
=-9.60 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Oct. 2022 )
=Net Income/Total Stockholders Equity
=-7192/74911
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-7192 / -5724) * (-5724 / 10780) * (10780 / 611252) * (611252 / 247427.5) * (247427.5 / 74911)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.2565 * -0.531 * 1.76 % * 2.4704 * 3.303
=-9.60 %

Note: The net income data used here is four times the quarterly (Oct. 2022) net income data. The Revenue data used here is four times the quarterly (Oct. 2022) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Walmart ROE % Related Terms

Thank you for viewing the detailed overview of Walmart's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Walmart (NYSE:WMT) Business Description

Walmart logo
Address
702 Southwest 8th Street, Bentonville, AR, USA, 72716
America's largest retailer by sales, Walmart operated over 11,400 stores under 54 banners at the end of fiscal 2021, selling a variety of general merchandise and grocery items. Its home market accounted for 78% of sales in fiscal 2021, with Mexico and Central America (6%) and Canada (4%) its largest external markets. In the United States, around 56% of sales come from grocery, 32% from general merchandise, and 10% from health and wellness items. The company operates several e-commerce properties apart from its eponymous site, including Flipkart and shoes.com (it also owns a roughly 10% stake in Chinese online retailer JD.com). Combined, e-commerce accounted for about 12% of fiscal 2021 sales.
Executives
Rainey John D officer: Executive Vice President C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Stephenson Randall L director 208 S. AKARD ST. DALLAS TX 75202
Morris Donna officer: Executive Vice President 345 PARK AVENUE SAN JOSE CA 95110
Mclay Kathryn J. officer: Executive Vice President 702 S.W. 8TH STREET BENTONVILLE AR 72716
Kumar Suresh officer: Chief Technology Officer 860 W. CALIFORNIA AVE. SUNNYVALE CA 94086
Conde Cesar director ONE OWENS CORNING PARKWAY TOLEDO OH 43659
Easterbrook Stephen director MCDONALD'S CORPORATION 110 NORTH CARPENTER STREET CHICAGO IL 60607
Brand Rachel L officer: Executive Vice President 702 S.W. 8TH STREET BENTONVILLE AR 72716
Friar Sarah director C/O NEXTDOOR HOLDINGS, INC. 420 TAYLOR STREET SAN FRANCISCO CA 94102
Mckenna Judith J officer: Executive Vice President 702 S.W. 8TH STREET BENTONVILLE AR 72716
Harris Carla A director 702 SW 8TH STREET BENTONVILLE AR 72716
Furner John R. officer: Executive Vice President 702 SW 8TH STREET BENTONVILLE AR 72716
Chojnowski David officer: Senior Vice President 5505 BLUE LAGOON DRIVE MIAMI FL 33126
Lore Marc E. officer: Executive Vice President 443 GREENWICH STREET, PHA NEW YORK NY 10013
Walton Steuart L director 702 SW 8TH STREET BENTONVILLE AR 72716

Walmart (NYSE:WMT) Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
premium membership