Switch to:
Wal-Mart Stores Inc  (NYSE:WMT) Asset Turnover: 0.62 (As of Jul. 2017)

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Wal-Mart Stores Inc's Revenue for the three months ended in Jul. 2017 was \$123,355 Mil. Wal-Mart Stores Inc's Total Assets for the quarter that ended in Jul. 2017 was \$200,642 Mil. Therefore, Wal-Mart Stores Inc's asset turnover for the quarter that ended in Jul. 2017 was 0.62.

Asset Turnover is linked to ROE % through Du Pont Formula. Wal-Mart Stores Inc's annualized ROE % for the quarter that ended in Jul. 2017 was 15.45%. It is also linked to ROA % through Du Pont Formula. Wal-Mart Stores Inc's annualized ROA % for the quarter that ended in Jul. 2017 was 5.78%.

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

 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Asset Turnover 2.36 2.34 2.38 2.39 2.44

Wal-Mart Stores Inc Quarterly Data

 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Asset Turnover 0.58 0.65 0.59 0.62 0.60

Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

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

 Asset Turnover = Sales / Average Total Assets = Revenue (A: Jan. 2017 ) / ( (Total Assets (A: Jan. 2016 ) + Total Assets (A: Jan. 2017 )) / 2 ) = 485873 / ( (199581 + 198825) / 2 ) = 485873 / 199203 = 2.44

Wal-Mart Stores Inc's Asset Turnover for the quarter that ended in Jul. 2017 is calculated as

 Asset Turnover = Sales / Average Total Assets = Revenue (Q: Jul. 2017 ) / ( (Total Assets (Q: Apr. 2017 ) + Total Assets (Q: Jul. 2017 )) / 2 ) = 123355 / ( (199718 + 201566) / 2 ) = 123355 / 200642 = 0.61

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

Companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover. Companies in the retail industry tend to have a very high turnover ratio.

Explanation

Asset Turnover is linked to Return on Equity (ROE) through Du Pont Formula.

Wal-Mart Stores Inc's annulized ROE % for the quarter that ended in Jul. 2017 is

 ROE % (Q: Jul. 2017 ) = Net Income / Total Equity = 11596 / 75040 = (Net Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Equity) = (11596 / 493420) * (493420 / 200642) * (200642/ 75040) = Net Margin % * Asset Turnover * Leverage Ratio = 2.35 % * 2.4592 * 2.6738 = ROA % * Leverage Ratio = 5.78 % * 2.6738 = 15.45 %

Note: The Net Income data used here is four times the quarterly (Jul. 2017) net income data. The Revenue data used here is four times the quarterly (Jul. 2017) revenue data.

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

It is also linked to Return on Assets (ROA) through Du Pont Formula:

Wal-Mart Stores Inc's annulized ROA % for the quarter that ended in Jul. 2017 is

 ROA % (Q: Jul. 2017 ) = Net Income / Total Assets = 11596 / 200642 = (Net Income / Revenue) * (Revenue / Total Assets) = (11596 / 493420) * (493420 / 200642) = Net Margin % * Asset Turnover = 2.35 % * 2.4592 = 5.78 %

Note: The Net Income data used here is four times the quarterly (Jul. 2017) net income data. The Revenue data used here is four times the quarterly (Jul. 2017) revenue data.

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

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's asset turnover is consistent or even increases. If a company's asset grows faster than sales, its asset turnover will decline, which can be a warning sign.

Related Terms

From the Internet

###### 3 Dividend Stocks Ideal for Retirees

- Fool 2017-11-18 11:00:00

###### Color Kass Bewildered: Best of Kass

- theStreet 2017-11-18 10:00:00

###### Why Walmart Haters Have Been Beyond Dumb

- theStreet 2017-11-18 09:21:00

###### Rga Q3 2017 Letter Amazons Share E Commerce Paypals Opportunity

- Seekingalpha 2017-11-18 08:13:24

###### Here's Your Black Friday Holiday Shopping Game Plan

- theStreet 2017-11-18 07:30:00

###### This Black Friday Favorite Is the Biggest Retail Story of 2017

- theStreet 2017-11-18 07:20:00

###### Week Review November 16 2017

- Seekingalpha 2017-11-18 05:00:34

###### Tax Bill Moves Along, Retailers Rally and the Dow Sinks Again -- Week in Review

- theStreet 2017-11-17 17:46:00

###### 5 biggest takeaways from Tesla's Semi truck and Roadster event

- theStreet 2017-11-17 16:18:00

###### There's Now an Exchange Traded Fund That Tracks the Demise of Retailers

- theStreet 2017-11-17 15:33:00

###### Wal-Mart Stores Inc. Delivers 50% E-Commerce Growth

- Fool 2017-11-17 15:31:00

###### Black Friday week usually pushes retail stocks into the black, history shows

- cnbc 2017-11-17 15:28:12

###### Tesla Semi claims a number of 'firsts' for trucking industry

- cnbc 2017-11-17 15:17:00

- Seekingalpha 2017-11-17 14:59:23

###### Wal-Mart, J.B. Hunt are among the first to order the Tesla semi truck

- MarketWatch 2017-11-17 14:40:00

###### Square's Bitcoin Bet, Retail Survivors, & Walmart Earnings

- Zacks 2017-11-17 14:04:00

###### Time for High Beta & Momentum ETFs?

- Zacks 2017-11-17 12:23:00

###### Wal-Mart preorders 15 Tesla trucks for U.S., Canada

- MarketWatch 2017-11-17 12:16:00

###### Wal-Mart says it’s preordered 15 of Tesla’s new electric tractor trailers

- cnbc 2017-11-17 12:04:13

###### Weekend roundup: Tesla’s big splash | Retail’s opportunity | Eating turkey tails

- MarketWatch 2017-11-17 11:57:00

###### Wal-Mart still look richly valued after a more than 49% climb this year

- Barron's 2017-11-17 11:56:06

###### Russell 2000 spikes from major support, Nasdaq briefly tags record high

- MarketWatch 2017-11-17 11:43:00

###### Wal-Mart planning to test Tesla's truck: report

- MarketWatch 2017-11-17 11:42:00

###### Why Wal-Mart Is Getting a Dressing-Down

- Barron's 2017-11-17 11:14:00

###### Retail Might Be Struggling, but Not All Stores Are Dying

- theStreet 2017-11-17 11:07:00

###### Is a Buyout Blue Apron's Only Hope for Deliverance?

- Fool 2017-11-17 10:46:00

###### Stock Market News For Nov 17, 2017

- Zacks 2017-11-17 09:09:00

###### Wal-Mart Is Holding Its Own Against Amazon

- Barron's 2017-11-17 09:06:27

###### Wal-Mart ETFs to Buy on Blockbuster Q3 Results

- Zacks 2017-11-17 08:40:00

###### Dow 30 Stock Roundup: GE Cuts Dividend, Wal-Mart, Home Depot Beat

- Zacks 2017-11-17 08:33:00

###### Wal Mart Amazon Nervous

- Seekingalpha 2017-11-17 08:08:28

###### The Simple Reason I Won't Buy Plug Power, Inc. Stock

- Fool 2017-11-17 08:05:00

###### The Zacks Analyst Blog Highlights: Walmart, Google and Amazon

- Zacks 2017-11-17 07:57:00

###### WalMart (WMT) Soars: Stock Adds 10.9% in Session

- Zacks 2017-11-17 07:46:00

###### Thursday Wal Mart Cisco Cramers Mad Money 11 16 17

- Seekingalpha 2017-11-17 07:43:52

###### Zacks Earnings Trends Highlights: Wal-Mart, Amazon, ExxonMobil and Chevron

- Zacks 2017-11-17 07:39:00

###### Walmart's E-Commerce Unit Has Things in Common With Microsoft's Cloud Unit

- theStreet 2017-11-17 07:01:00

###### Wall Street Set to Open Lower as Dollar Falls, European Markets Down

- theStreet 2017-11-17 06:09:00

###### Taxes, Fox and Tesla - 5 Things You Must Know Before the Market Opens Friday

- theStreet 2017-11-17 06:01:00

###### Robert Mueller's Subpoena & the House's Tax Bill - This is What You Need to Know

- theStreet 2017-11-17 05:17:00

###### European Markets Flat, Wall Poised to Open Lower as Dollar Declines

- theStreet 2017-11-17 03:56:00

###### Exploding E Commerce Sales Drive Wal Mart Time High

- Seekingalpha 2017-11-17 02:57:14

###### European Markets Set for Mixed Opening, Wall Street Futures Under Pressure

- theStreet 2017-11-17 02:48:00

###### Home Depot, Lowe's, The Blackstone Group: 'Mad Money' Lightning Round

- theStreet 2017-11-16 22:33:00

###### Wal Mart Street Picks Sides Retail

- Seekingalpha 2017-11-16 20:22:55

###### Miles White of Abbott Labs: Cramer's Top Takeaways

- theStreet 2017-11-16 19:40:00

###### PPG Industries: Cramer's Top Takeaways

- theStreet 2017-11-16 19:29:00

###### Amazon should be worried about Walmart, former JC Penney CEO says

- cnbc 2017-11-16 19:25:41

###### Fundamentals Drive This Rally: Cramer's 'Mad Money' Recap

- theStreet 2017-11-16 19:19:00

###### What Happened in the Stock Market Today

- Fool 2017-11-16 17:04:00

###### Plenty of Positive Retail Surprises

- Zacks 2017-11-16 16:42:00

###### Plenty of Positive Retail Surprises

- Zacks 2017-11-16 16:37:00

###### Wall Street Rallies as GOP Tax Plan Clears House, Walmart and Cisco Surge

- theStreet 2017-11-16 16:09:00

###### Wal-Mart is taking its battle with Amazon to higher-end customers

- MarketWatch 2017-11-16 15:56:00

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)