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Walmart Inc  (NYSE:WMT) Gross Margin %: 24.68% (As of Jan. 2018)

Gross Margin % is calculated as gross profit divided by its revenue. Walmart Inc's Gross Profit for the three months ended in Jan. 2018 was $33,627 Mil. Walmart Inc's Revenue for the three months ended in Jan. 2018 was $136,267 Mil. Therefore, Walmart Inc's Gross Margin % for the quarter that ended in Jan. 2018 was 24.68%.


NYSE:WMT' s Gross Margin % Range Over the Past 10 Years
Min: 24.81   Max: 25.65
Current: 25.37

24.81
25.65

During the past 13 years, the highest Gross Margin % of Walmart Inc was 25.65%. The lowest was 24.81%. And the median was 25.06%.

NYSE:WMT's Gross Margin % is ranked higher than
56% of the 369 Companies
in the Global industry.

( Industry Median: 24.00 vs. NYSE:WMT: 25.37 )

Walmart Inc had a gross margin of 24.68% for the quarter that ended in Jan. 2018 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Walmart Inc was 0.60% per year.


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.

Walmart Inc Annual Data

Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.82 24.83 25.13 25.65 25.37

Walmart Inc Quarterly Data

Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18
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 25.35 25.40 25.81 25.68 24.68

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

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

Walmart Inc's Gross Margin for the fiscal year that ended in Jan. 2018 is calculated as

Gross Margin % (A: Jan. 2018 )=Gross Profit (A: Jan. 2018 ) / Revenue (A: Jan. 2018 )
=126947 / 500343
=(Revenue - Cost of Goods Sold) / Revenue
=(500343 - 373396) / 500343
=25.37 %

Walmart Inc's Gross Margin for the quarter that ended in Jan. 2018 is calculated as


Gross Margin % (Q: Jan. 2018 )=Gross Profit (Q: Jan. 2018 ) / Revenue (Q: Jan. 2018 )
=-102640 / 136267
=(Revenue - Cost of Goods Sold) / Revenue
=(136267 - 102640) / 136267
=24.68 %

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


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 Inc had a gross margin of 24.68% for the quarter that ended in Jan. 2018 => 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.


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