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Wal-Mart Stores Inc  (NYSE:WMT) Return-on-Tangible-Equity: 20.26%% (As of Jul. 2017)

Return on tangible equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Equity minus Intangible Assets. Wal-Mart Stores Inc's annualized Net Income for the quarter that ended in Jul. 2017 was $11,596 Mil. Wal-Mart Stores Inc's average shareholder tangible equity for the quarter that ended in Jul. 2017 was $57,234 Mil. Therefore, Wal-Mart Stores Inc's annualized return on tangible equity (ROTE) for the quarter that ended in Jul. 2017 was 20.26 %%.

NYSE:WMT' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 21.55   Max: 31.92
Current: 21.55

21.55
31.92

During the past 13 years, Wal-Mart Stores Inc's highest Return on Tangible Equity (ROTE) was 31.92%. The lowest was 21.55%. And the median was 27.40%.

NYSE:WMT's Return-on-Tangible-Equity is ranked higher than
81% of the 320 Companies
in the Global industry.

( Industry Median: 9.76 vs. NYSE:WMT: 21.55 )

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Wal-Mart Stores Inc Annual Data

Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Return-on-Tangible-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 31.92 28.46 27.26 23.11 21.90

Wal-Mart Stores Inc Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
Return-on-Tangible-Equity 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 25.45 20.21 24.91 20.80 20.26

Competitive Comparison
* 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.


Calculation

Wal-Mart Stores Inc's annualized Return on Tangible Equity (ROTE) for the fiscal year that ended in Jan. 2017 is calculated as

ROTE=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(A: Jan. 2017 )  (A: Jan. 2016 )(A: Jan. 2017 )
=Net Income/( (Total Equity - Intangible Assets+Total Equity - Intangible Assets )/ 2 )
(A: Jan. 2017 )  (A: Jan. 2016 )(A: Jan. 2017 )
=13643/( (63851+60761
=13643/62306
=21.90 % %

Wal-Mart Stores Inc's annualized Return on Tangible Equity (ROTE) for the quarter that ended in Jul. 2017 is calculated as

ROTE=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(Q: Jul. 2017 )  (Q: Apr. 20 )(Q: {Q1})
=Net Income/( (Total Equity - Intangible Assets+Total Equity - Intangible Assets)/ 2 )
(Q: Jul. 2017 )  (Q: Apr. 20 )(Q: Jul. 2017 )
=11596/( (56116+58352)/ 2 )
=11596/57234
=20.26 % %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

In the calculation of annual return on tangible equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jul. 2017) net income data. Return on Equity is displayed in the 10-year financial page.


Explanation

Return on Tangible Equity (ROTE) measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). ROTE shows how well a company uses investment funds to generate earnings growth. ROTEs between 15% and 20% are considered desirable.


Be Aware

The net income used here is the net income to common shareholders.

Because a company can increase its return on tangible equity by having more financial leverage, it is important to watch the leverage ratio when investing in high ROTE companies. Like Return-on-Tangible-Asset, ROTE 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 ROTEs can be extremely high.


Related Terms


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