Switch to:
Walmart Inc  (NYSE:WMT) Operating Margin %: 3.28% (As of Jan. 2018)

Operating Margin % is calculated as Operating Income divided by its Revenue. Walmart Inc's Operating Income for the three months ended in Jan. 2018 was $4,467 Mil. Walmart Inc's Revenue for the three months ended in Jan. 2018 was $136,267 Mil. Therefore, Walmart Inc's Operating Margin % for the quarter that ended in Jan. 2018 was 3.28%.

Warning Sign:

Walmart Inc operating margin has been in 5-year decline. The average rate of decline per year is -7%.

NYSE:WMT' s Operating Margin % Range Over the Past 10 Years
Min: 4.08   Max: 6.05
Current: 4.08

4.08
6.05

NYSE:WMT's Operating Margin % is ranked higher than
66% of the 371 Companies
in the Global industry.

( Industry Median: 2.97 vs. NYSE:WMT: 4.08 )

Walmart Inc's 5-Year Average operating margin Growth Rate was -7.00% per year.

Walmart Inc's Operating Income for the three months ended in Jan. 2018 was $4,467 Mil. Its operating income for the trailing twelve months (TTM) ended in Jan. 2018 was $20,437 Mil.


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
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.64 5.59 5.00 4.69 4.08

Walmart Inc Quarterly Data

Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18
Operating 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 4.74 4.46 4.84 3.87 3.28

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

Operating margin - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

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

Operating Margin %=Operating Income (A: Jan. 2018 ) / Revenue (A: Jan. 2018 )
=20437 / 500343
=4.08 %

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

Operating Margin %=Operating Income (Q: Jan. 2018 ) / Revenue (Q: Jan. 2018 )
=4467 / 136267
=3.28 %

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


Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Related Terms


Headlines

From the Internet

WMT
$SOX $SPY $WMT $AMZN S And P Rescue Walmart

- Seekingalpha 2018-02-22 04:29:21

WMT
$WMT $AMZN Amazon Stopping 1500

- Seekingalpha 2018-02-21 12:36:23

WMT
How to Invest with Confidence

- Zacks 2018-02-21 10:41:00

WMT
It's Amazon Vs Walmart!

- Zacks 2018-02-21 09:38:00

WMT
$AMZN $WMT Walmart Plunge

- Seekingalpha 2018-02-21 09:34:24

WMT
Is Walmart/Amazon a Zero-Sum Game?

- Zacks 2018-02-21 09:32:00

WMT
Stock Market News For Feb 21, 2018

- Zacks 2018-02-21 08:11:00

WMT
$AMZN $WMT Deep Drill Wal Marts Problem E Commerce

- Seekingalpha 2018-02-21 01:44:14

WMT
What Happened in the Stock Market Today

- Fool 2018-02-20 17:11:00

WMT
U.S. stocks end lower, with Walmart weighing on Dow

- MarketWatch 2018-02-20 16:02:00

WMT
$AMZN $WMT Wal Mart Ready Raise Guidance

- Seekingalpha 2018-02-20 13:30:44

WMT
Why Walmart Stock Plunged Today

- Fool 2018-02-20 12:07:00

WMT
Is Walmart Backing Off Amazon?

- theStreet 2018-02-20 10:58:00

WMT
Dow, S&P 500 Slide as Walmart Shares Slump

- theStreet 2018-02-20 09:47:00

WMT
How Do These Retailers Match Up?

- Zacks 2018-02-20 09:22:00

WMT
A Tale of Two Retailers

- Zacks 2018-02-20 09:18:00

WMT
Stock Market News For Feb 20, 2018

- Zacks 2018-02-20 08:55:00

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