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GuruFocus has detected 4 Warning Signs with Wal-Mart Stores Inc $WMT.
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Wal-Mart Stores Inc (NYSE:WMT)
Net Margin %
2.59% (As of Apr. 2017)

Net margin is calculated as net income divided by its revenue. Wal-Mart Stores Inc's net income for the three months ended in Apr. 2017 was $3,039 Mil. Wal-Mart Stores Inc's revenue for the three months ended in Apr. 2017 was $117,542 Mil. Therefore, Wal-Mart Stores Inc's net margin for the quarter that ended in Apr. 2017 was 2.59%.

WMT' s Net Margin % Range Over the Past 10 Years
Min: 2.79   Max: 3.89
Current: 2.79

2.79
3.89
WMT's Net Margin % is ranked higher than
65% of the 362 Companies
in the Global Discount Stores industry.

( Industry Median: 1.78 vs. WMT: 2.79 )

Definition

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Wal-Mart Stores Inc's Net Margin for the fiscal year that ended in Jan. 2017 is calculated as

Net Margin=Net Income (A: Jan. 2017 )/Revenue (A: Jan. 2017 )
=13643/485873
=2.81 %

Wal-Mart Stores Inc's Net Margin for the quarter that ended in Apr. 2017 is calculated as

Net Margin=Net Income (Q: Apr. 2017 )/Revenue (Q: Apr. 2017 )
=3039/117542
=2.59 %

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


Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company’s profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.


Related Terms

Net Income, Revenue, Cost of Goods Sold, Selling, General, & Admin. Expense, Research & Development, Depreciation, Depletion and Amortization, Interest Expense, Non-Recurring Items, Tax Expense


Historical Data

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

Wal-Mart Stores Inc Annual Data

Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16Jan17
netmargin 3.363.313.523.893.523.633.363.373.052.81

Wal-Mart Stores Inc Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
netmargin 3.772.912.892.813.532.663.122.572.872.59
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