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Walmart (WMT) Return-on-Tangible-Equity : 37.45% (As of Apr. 2024)


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What is Walmart Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Walmart's annualized net income for the quarter that ended in Apr. 2024 was $20,416 Mil. Walmart's average shareholder tangible equity for the quarter that ended in Apr. 2024 was $54,521 Mil. Therefore, Walmart's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2024 was 37.45%.

The historical rank and industry rank for Walmart's Return-on-Tangible-Equity or its related term are showing as below:

WMT' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.22   Med: 24.43   Max: 37.01
Current: 37.01

During the past 13 years, Walmart's highest Return-on-Tangible-Equity was 37.01%. The lowest was 13.22%. And the median was 24.43%.

WMT's Return-on-Tangible-Equity is ranked better than
79.93% of 299 companies
in the Retail - Defensive industry
Industry Median: 12.18 vs WMT: 37.01

Walmart Return-on-Tangible-Equity Historical Data

The historical data trend for Walmart's Return-on-Tangible-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Walmart Return-on-Tangible-Equity Chart

Walmart Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.05 28.28 25.75 22.73 29.75

Walmart Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Return-on-Tangible-Equity Get a 7-Day Free Trial 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 14.45 66.18 3.53 41.00 37.45

Competitive Comparison of Walmart's Return-on-Tangible-Equity

For the Discount Stores subindustry, Walmart's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.


Walmart's Return-on-Tangible-Equity Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Walmart's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Walmart's Return-on-Tangible-Equity falls into.



Walmart Return-on-Tangible-Equity Calculation

Walmart's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jan. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jan. 2024 )  (A: Jan. 2023 )(A: Jan. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jan. 2024 )  (A: Jan. 2023 )(A: Jan. 2024 )
=15511/( (48519+55748 )/ 2 )
=15511/52133.5
=29.75 %

Walmart's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Apr. 2024 )  (Q: Jan. 2024 )(Q: Apr. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Apr. 2024 )  (Q: Jan. 2024 )(Q: Apr. 2024 )
=20416/( (55748+53294)/ 2 )
=20416/54521
=37.45 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Equity, the net income 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 data used here is four times the quarterly (Apr. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Walmart  (NYSE:WMT) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity 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). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income 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 Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.


Walmart Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Walmart's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Walmart (WMT) Business Description

Address
702 S.W. 8th Street, Bentonville, AR, USA, 72716
Walmart serves as the preeminent retailer in the United States, with its strategy predicated on superior operating efficiency and offering the lowest priced goods to consumers to drive robust store traffic and product turnover. Walmart augmented its low-price business strategy by offering a convenient one-stop shopping destination with the opening of its first supercenter in 1988.Today, Walmart operates over 4,700 stores in the United States (5,300 including Sam's Club) and over 10,000 stores globally. Walmart generated over $420 billion in domestic namesake sales last year, with Sam's Club contributing another $84 billion to the firm's top line. Internationally, Walmart generated $100 billion in sales. The company serves around 240 million customers globally each week.
Executives
John D Rainey officer: Executive Vice President C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Jim C Walton director, other: Director C/O WALTON ENTERPRISES, INC., P.O. BOX 1860, BENTONVILLE AR 72712
S Robson Walton director, 10 percent owner, officer: Chairman of the Board C/O WALTON ENTERPRISES, INC., P.O. BOX 1860, BENTONVILLE AR 72716-0105
Alice L Walton 10 percent owner 110 N.W. SECOND STREET, SUITE 300, BENTONVILLE AR 72712
C Douglas Mcmillon officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
John R. Furner officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
Rachel L Brand officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716
Christopher James Nicholas officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
David Chojnowski officer: Senior Vice President 5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Daniel J Bartlett officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
Randall L Stephenson director 208 S. AKARD ST., DALLAS TX 75202
Judith J Mckenna officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716
M. Brett Biggs officer: Executive Vice President 702 SW 8TH STREET, BENTONVILLE AR 72716
Marc E. Lore officer: Executive Vice President 443 GREENWICH STREET, PHA, NEW YORK NY 10013
Kathryn J. Mclay officer: Executive Vice President 702 S.W. 8TH STREET, BENTONVILLE AR 72716

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