Switch to:
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 attributable to Common Stockholders 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 attributable to common stockholders 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: 19.52   Max: 31.92
Current: 19.52

19.52
31.92

During the past 13 years, Wal-Mart Stores Inc's highest Return on Tangible Equity (ROTE) was 31.92%. The lowest was 19.52%. And the median was 27.40%.

NYSE:WMT's Return-on-Tangible-Equity is ranked higher than
70% of the 364 Companies
in the Global industry.

( Industry Median: 11.77 vs. NYSE:WMT: 19.52 )

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

Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17
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 20.21 24.91 20.80 20.26 12.03

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 attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(A: Jan. 2017 )  (A: Jan. 2016 )(A: Jan. 2017 )
=Net Income attributable to Common Stockholders/( (Total Equity - Intangible Assets+Total Equity - Intangible Assets )/ 2 )
(A: Jan. 2017 )  (A: Jan. 2016 )(A: Jan. 2017 )
=13643/( (63851+60761 )/ 2 )
=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 attributable to Common Stockholders/( (Total Tangible Equity+Total Tangible Equity)/ 2 )
(Q: Jul. 2017 )  (Q: Apr. 2017 )(Q: Jul. 2017 )
=Net Income attributable to Common Stockholders/( (Total Equity - Intangible Assets+Total Equity - Intangible Assets)/ 2 )
(Q: Jul. 2017 )  (Q: Apr. 2017 )(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 attributable to common stockholders 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 attributable to common stockholders data used here is four times the quarterly (Jul. 2017) net income attributable to common stockholders 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

Net income attributable to common stockholders is used.

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


Headlines

From the Internet

WMT
Why Walmart Haters Have Been Beyond Dumb

- theStreet 2017-11-18 09:21:00

WMT
Week Review November 16 2017

- Seekingalpha 2017-11-18 05:00:34

WMT
Wal Mart Please Stop Madness Buy

- Seekingalpha 2017-11-17 14:59:23

WMT
Time for High Beta & Momentum ETFs?

- Zacks 2017-11-17 12:23:00

WMT
Wal-Mart preorders 15 Tesla trucks for U.S., Canada

- MarketWatch 2017-11-17 12:16:00

WMT
Wal-Mart planning to test Tesla's truck: report

- MarketWatch 2017-11-17 11:42:00

WMT
Why Wal-Mart Is Getting a Dressing-Down

- Barron's 2017-11-17 11:14:00

WMT
Stock Market News For Nov 17, 2017

- Zacks 2017-11-17 09:09:00

WMT
Wal-Mart Is Holding Its Own Against Amazon

- Barron's 2017-11-17 09:06:27

WMT
Wal Mart Amazon Nervous

- Seekingalpha 2017-11-17 08:08:28

WMT
Thursday Wal Mart Cisco Cramers Mad Money 11 16 17

- Seekingalpha 2017-11-17 07:43:52

WMT
Exploding E Commerce Sales Drive Wal Mart Time High

- Seekingalpha 2017-11-17 02:57:14

WMT
Wal Mart Street Picks Sides Retail

- Seekingalpha 2017-11-16 20:22:55

WMT
PPG Industries: Cramer's Top Takeaways

- theStreet 2017-11-16 19:29:00

WMT
What Happened in the Stock Market Today

- Fool 2017-11-16 17:04:00

WMT
Plenty of Positive Retail Surprises

- Zacks 2017-11-16 16:42:00

WMT
Plenty of Positive Retail Surprises

- Zacks 2017-11-16 16:37:00

WMT
Has Wal-Mart Won the Retail Wars?

- Barron's 2017-11-16 14:35:55

WMT
Despite iPhone, Best Buy Continues to Struggle

- theStreet 2017-11-16 12:49:00

WMT
Wal-Mart Ready to Rumble With Amazon

- Barron's 2017-11-16 12:25:21

WMT
Why Wal-Mart Stock Was Soaring Today

- Fool 2017-11-16 12:14:00

WMT
New ETF is a bet on the death of retail stores

- MarketWatch 2017-11-16 11:56:00

WMT
Amazon Go May Coming May Help Stock

- Seekingalpha 2017-11-16 09:49:54

WMT
Walmart Now Pushes Clicks, Not Bricks

- theStreet 2017-11-16 09:49:00

WMT
A Wrap-Up Of The Latest Economic Data

- Zacks 2017-11-16 09:40:00

WMT
U.S. stocks open higher after two days of losses

- MarketWatch 2017-11-16 09:32:00

WMT
Stock Market News For Nov 16, 2017

- Zacks 2017-11-16 09:13:00

WMT
Asda sales up; parent warns on challenging market

- MarketWatch 2017-11-16 08:41:00

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)

GF Chat

{{numOfNotice}}
FEEDBACK