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Walmart Gross Margin %

: 24.21% (As of Jan. 2021)
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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%.


NYSE:WMT' s Gross Margin % Range Over the Past 10 Years
Min: 24.69   Med: 24.91   Max: 25.65
Current: 24.83

24.69
25.65

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%.

NYSE:WMT's Gross Margin % is ranked higher than
54% of the 290 Companies
in the Retail - Defensive industry.

( Industry Median: 23.85 vs. NYSE:WMT: 24.83 )

Walmart had a gross margin of 24.21% for the quarter that ended in Jan. 2021 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Walmart was -0.50% per year.


Walmart Gross Margin % 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
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.65 25.37 25.10 24.69 24.83

Walmart Quarterly Data
Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21
Gross Margin % 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 23.94 24.21 25.45 25.51 24.21

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.


Walmart Gross Margin % Distribution

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



Walmart Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Walmart's Gross Margin for the fiscal year that ended in Jan. 2021 is calculated as

Gross Margin % (A: Jan. 2021 )=Gross Profit (A: Jan. 2021 ) / Revenue (A: Jan. 2021 )
=138836 / 559151
=(Revenue - Cost of Goods Sold) / Revenue
=(559151 - 420315) / 559151
=24.83 %

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 )
=36818 / 152079
=(Revenue - Cost of Goods Sold) / Revenue
=(152079 - 115261) / 152079
=24.21 %

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


Walmart  (NYSE:WMT) Gross Margin % Explanation

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


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Walmart Gross Margin % Related Terms


Walmart Gross Margin % Headlines

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