Walmart Financial Statement and Financial Ratios Analysis

Walmart Financial Statements and Financial Ratios Analyzed

Hey All,

Thanks for visiting my Walmart Financial Report page. On this page, you will be able to find preliminary information about Walmart's current financial performance as well as some historical track records and trends. 

For a more detailed examination of Walmart's financial performance, I offer two reports, which are "A Beginner's Guide to Walmart Financial Analysis" and "Walmart Financial Report by Paul Borosky, MBA."  Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, and include:

  • Summarized income statement for the last 5 years.
  • Summarized balance sheet for the last 5 years.
  • Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
  • Line-by-line description, explanation, and analysis tip for most financial statement line items and financial ratios.
  • Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is where I use plain English to explain concepts.

 

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Walmart Financial Report."  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand the overall trend for the last 5 years.
  • Overall financial analysis summary for the company.

Enjoy the preliminary information, and for a more detailed analysis, buy the financial report!

Sincerely,

Paul, MBA. 

PDF/Downloadable Version

Walmart 2023 - A Beginner's Guide to Financial Analysis by Paul Borosky, MBA.

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Walmart 2022 Financial Report by Paul Borosky, MBA.

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Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Walmart 2023 - Brief Company Summary

Walmart, the world's largest retailer, is a multinational corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. Founded in 1962 by Sam Walton, Walmart has grown into a household name known for its wide range of products at affordable prices. With its headquarters in Bentonville, Arkansas, Walmart has a vast presence across the globe, serving millions of customers each day.

The company's mission is to help people save money and live better, aiming to provide convenient access to quality goods and services. Walmart offers a diverse selection of merchandise, including groceries, apparel, electronics, home goods, and more. Through its commitment to low prices and a vast network of suppliers, Walmart strives to offer value to its customers while supporting communities and creating economic opportunities.

Walmart embraces innovation and digital transformation, leveraging technology to enhance the shopping experience for customers both in-store and online. With a focus on sustainability, the company aims to reduce its environmental footprint and promote responsible practices throughout its operations.

Overall, Walmart's customer-centric approach, expansive product offerings, and dedication to affordability have made it a prominent player in the global retail industry.

From a financial perspective, as of 2023, Walmart’s market capitalization is $426 billion.  The organization’s beta is .5.  A beta below 1.0 indicates that the company's stock is less risky as compared to the overall market.  Walmart’s current stock price is $156.81.  The organization’s current dividend yield is approximately 1.47%.  Finally, important competitors for the organization would be Target as well as Amazon.com (6/23).

Walmart Financial Report Sources

"Walmart 2021 Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by Paul Borosky, MBA., doctoral candidate and owner of Quality Business Plan.  In this summarized book, the author researched Walmart's 10k, Walmart's 2017 10k annual report, Walmart's 2021 10k annual report, Walmart's 2020 10k annual report, and Walmart's 2019 10k annual report as the basis for information gathering.  Once all Walmart's 10k annual statements were collected, the author then inserted Walmart's income statement information and Walmart's balance sheet information into a customized financial template. 

 

 

Section 1: Walmart Income Statement Analyzed

In this section, I walk through a broad definition of what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc., in detail.  After each line item is defined and discussed, I finally offer a summary analysis of Walmart's important income statement line item trends from 2018 to 2023, in most cases.

Revenue Growth:

Walmart’s revenues for the last five years have increased steadily.  On average, revenue growth over this time frame was 3.1%.  For a multinational organization, this would be considered about average.  However, the impressive aspect of its revenue growth would be its consistency in positive growth over this time frame.

Analyst Grade: A

Walmart 2023 Summary Income Statement

Column1 2023 2022 2021 2020 2019
Revenues                  611,289                  572,754                  559,151                  523,964                    514,405
COGS                  463,721                  429,000                  420,315                  394,605                    385,301
Gross Profit                  147,568                  143,754                  138,836                  129,359                    129,104
 
SG&A                  127,140                  117,812                  116,288                  108,791                    107,147
Depreciation                    10,945                    10,658                    11,152                    10,987                      10,678
R & D                            -                            -                            -                            -                             -
Other                            -                            -                            -                            -                             -
Total Operating Expenses                  138,085                  128,470                  127,440                  119,778                    117,825
EBIT                    20,428                    25,942                    22,548                    20,568                      21,957
Other Income                            -                             -
Interest Expense                      1,874                      1,836                      2,194                      2,410                        2,129
EBT                    17,016                    18,696                    20,564                    20,116                      11,460
Taxes                      5,724                      4,756                      6,858                      4,915                        4,281
Net Income                   11,680                   13,673                   13,510                   14,881                      6,670

 

Walmart Balance Sheet Analyzed

For Walmart's balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define the balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2017 to 2021.  Next, I then offer an analysis of Walmart's important balance sheet line item.

Cash:

Walmart’s cash position between 2018 and 2020 was approximately 1.3 to 1.8% of sales.  However, in 2021, the organization’s cash position as compared to sales increased significantly to 3.2% of sales.  This increase may have been due to the organization’s concerns about the Covid-19 pandemic and their desire to have an increased cash buffer.  Further, this hypothesis may be supported because, in 2022, the organization’s cash position as compared to sales decreased to 2.6% of sales.  If this trend continues, then investors should expect a cash position in the future within the range of 1.3% to about 1.8%.

Analyst Grade: A

Walmart 2023 Summary Balance Sheet

 
Column1 2023 2022 2021 2020 2019
Cash                        8,625                  14,760                  17,741                    9,465                    7,722
Short Term Investment                              -                         -                         -                         -                         -
Account Receivable                        7,933                    8,280                    6,516                    6,284                    6,283
Inventory                      56,576                  56,511                  44,949                  44,435                  44,269
Other                              -                         -                         -                         -                         -
Current Assets                    75,655                81,070                90,067                61,806                61,897
Net PPE                    100,760                  94,515                  92,201                105,208                104,317
Goodwill                      28,174                  29,014                  28,983                  31,073                  31,181
Other                              -                         -                         -                         -                         -
Total Assets                  243,197              244,860              252,496              236,495              219,295
 
Accounts Payable                      53,742                  55,261                  49,141                  46,973                  47,060
Accrued Expense                      31,126                  26,060                  37,966                  22,296                  22,159
Accrued Taxes                           727                       851                       242                       280                       428
Notes Payable                           372                       410                       224                       575                    5,225
LT Debt - Current                        4,191                    2,803                    3,115                    5,362                    1,876
Other                         -                         -                         -                         -
Total Current Liabilities                      92,198                  87,379                  92,645                  77,790                  77,477
 
LT Debt                      34,649                  34,864                  41,194                  43,714                  50,203
Other                         -                         -                         -                         -
Total Liabilities                  159,443              152,969              164,965              154,943                50,203
 
Common Stock                        5,238                    5,115                    3,928                    3,531                    3,253
Treasury                              -                         -                         -                         -                         -
Retained Earnings                      83,135                  86,904                  88,763                  83,943                  80,785
Other                              -                         -                         -                         -                         -
Total Equity                    83,754                91,891                87,531                81,552                79,634
Total Equity & Liability                  243,197              244,860              252,496              236,495              219,295

 

 

Walmart's Financial Ratio Summary

For this section, I have chosen several different financial ratios to review for Walmart from 2017 to 2021.  In reviewing each of Walmart's financial ratios, I first start with defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of Walmart's Important Financial ratios. 

Walmart's Current Ratio: 

Walmart’s current ratio has increased from .79 in 2020 to .93 and 2022.  The increase in the organization’s current ratio during a pandemic is a smart move, in my opinion.  The increased current ratio shows that the firm may be increasing its cash position to ensure liquidity for the short term.

Analyst Grade: A

Walmart's Total Asset Turnover: 

Walmart’s total asset turnover ended 2018 at 2.48.  In the next four years, the organization would decrease its total asset turnover ending 2021 at 2.21.  Fortunately, the organization would improve its asset utilization and end 2022 at a 2.3 total asset turnover.  If this trend continues, then it may indicate the company has achieved its cost-cutting objectives over the last several years and is ready to move forward with growth.

Analyst Grade: A-