Walmart Financial Statements and Financial Ratios Analyzed from 2017 to 2021

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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, please check out the "Financial Report".  In this report, written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, you will find:

  • Summarized income statement for the last 5 years.
  • Summarized balance sheet for the last 5 years.
  • Summary analysis by myself of the important income statement, balance sheet, and financial ratio trends, and other happenings.
  • Five year’s 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.

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

Sincerely,

Paul MBA. (Updated 2021)

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Walmart 2021 - Financial Report by Paul Borosky, MBA.
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Walmart 2021 - Brief Company Summary

Walmart’s headquarters is located in Bentonville, Arkansas.  The firm competes in the discount store industry.  Specifically, the industry sector would be consumer defensive.  At present, the organization has approximately 2.3 million employees.  The main products sold would be durable and nondurable goods.

From a financial perspective, Walmart currently has a market cap of approximately $392 billion.  The firm’s beta is .48.  This indicates that the company is loosely correlated to the market.  The 52-week stock range is from $117.01 to $153.66.

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 2017 to 2021

In this section, I walk through a broad definition as to 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 2017 to 2021, in most cases.

Revenue Growth:

Walmart ended 2017 with revenues at approximately $485 billion.  In the next four years, the organization will continually grow revenues.  This growth would result in revenues at $559 billion in 2021.  The organization’s growth rate ranged from 6.7% in 2021 to 1.6% in 2019.  This would be an average growth rate of 3.6%.  An important note to consider is that the firm had above-average growth from 2020 to 2021.  A possible reason for this growth would be pandemic-related.  As a result, future growth rates may not reach this elevated plateau, especially with competitive pressures from Target and Amazon.

Walmart Income Statement 2021

Column1 2021 2020 2019 2018 2017
Revenues                  559,151                  523,964                  514,405                  506,343                    485,873
COGS                  420,315                  394,605                  385,301                  373,396                    361,256
Gross Profit                  138,836                  129,359                  129,104                  132,947                    124,617
 
SG&A                  116,288                  108,791                  107,147                  106,510                    101,853
Depreciation                    11,152                    10,987                    10,678                    10,529                      10,080
R & D                            -                            -                            -                            -                             -
Other                            -                            -                            -                             -
Operating Expenses                  536,603                  503,396                  492,448                  479,906                    463,109
EBIT                    24,524                    22,978                    24,086                    28,615                      25,031
Other Income                            -                            -                            -                             -
Interest Expense                      1,976                      2,410                      2,129                      2,178                        2,267
EBT                    22,548                    20,568                    21,957                    26,437                      22,764
Taxes                      6,858                      4,915                      4,281                      4,600                        6,204
Net Income                   15,690                   15,201                     6,670                     9,862                    13,643
Tax Rate 30.4% 23.9% 19.5% 17.4% 27.3%

Walmart Balance Sheet Analyzed 2017 to 2021

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 in 2017 was $6.8 billion.  In the next year, the organization’s cash position would fall slightly to $6.7 billion.  Fortunately, in the next two years, the organization would enjoy a moderate cash growth ending 2020 at $9.4 billion.  However, in 2021, the organization’s cash position would grow substantially, ending the year at $17.7 billion.

The substantial growth in the company’s cash position in 2021 may have been in response to the Covid-19 pandemic.  Similar to other multinational companies, Walmart may have taken out substantial debt to ensure the firm had liquid resources to sustain operations.  If this was the case, then the firm’s debt position should have increased substantially as well. 

Another possibility for the increased cash position would be the firm’s stringent reluctance to use short-term investments.  If this is the case, it’s not a great strategy.  A better strategy would be for the organization to identify specifically what their cash needs may be and divest the additional cash into short-term investments.

Walmart Summary Balance Sheet 2021

Column1 2021 2020 2019 2018 2017
Cash                      17,741                    9,465                    7,722                    6,756                    6,867
Short Term Investment                              -                         -                         -                         -                         -
Account Receivable                        6,516                    6,284                    6,283                    5,614                    5,835
Inventory                      44,949                  44,435                  44,269                  43,783                  43,046
Other                              -                         -                         -                         -
Current Assets                    90,067                61,806                61,897                59,664                57,689
Net PPE                      92,201                105,208                104,317                107,675                107,710
Goodwill                      28,983                  31,073                  31,181                  18,242                  17,037
Other                              -                         -                         -                         -                         -
Total Assets                  252,496              236,495              219,295              204,522              198,825
Accounts Payable                      49,141                  46,973                  47,060                  46,092                  41,433
Accrued Expense                      37,966                  22,296                  22,159                  22,122                  20,654
Accrued Taxes                           242                       280                       428                       645                       921
Notes Payable                        3,115                    5,362                    5,225                    5,257                    1,099
LT Debt - Current                           491                       511                       729                       667                    2,256
Other                         -                         -                         -                         -
Total Current Liabilities                      92,645                  77,790                  77,477                  78,521                  66,928
LT Debt                      41,194                  43,714                  50,203                  36,825                  42,018
Other                         -                         -                         -                         -
Total Liabilities                  164,965              154,943                50,203                36,825                42,018
Common Stock                        3,928                    3,531                    3,253                    2,943                    2,676
Treasury                              -                         -                         -                         -                         -
Retained Earnings                      88,763                  83,943                  80,785                  85,107                  89,354
Other                              -                         -                         -                         -                         -
Total Equity                    87,531                81,552                79,634                80,822                80,535
Total Equity & Liability                  252,496              236,495              219,295              204,522              198,825

Walmart's Financial Ratio Summary From 2017 to 2021

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 ended in 2017 at .86.  The following year, the organization would reduce its current ratio to .76.  However, in the next three years, Walmart would increase the current ratio in 2021 to .97. 

For most organizations, a current ratio below 1.0 may be considered risky from the perspective of liquidity.  However, with industries and organizations that continually generate cash on a daily basis, having a current ratio of .8 or lower has become the norm in the last several years.  From this perspective, it seems like Walmart actually has a higher current ratio than would be typical for industry competitors.  From this, a better strategy may be for the organization to reduce their current ratio by investing in more stores or increasing their dividend payouts.

Walmart's Total Asset Turnover: 

Walmart’s total asset turnover in 2017 was 2.44.  In the next four years, the organization will continually decrease the total asset turnover ending 2021 at 2.21. 

Walmart's Debt Ratio: 

Walmart’s debt ratio for 2017 was 21.1%.  In the next two years, the organization’s debt ratio would slightly increase to 22.8%.  However, in the last two years, the organization would take steps to reduce the long-term debt ratio ending 2021 at 16.3%. 

The substantial reduction in their long-term debt ratio shows that the firm is restructuring its capital structure to include more equity in operations and growth as compared to debt.  This type of structure quite frankly confuses me.  A better strategy, in my most humble of opinions, would be for the organization to take on more debt, buy back stock, and invest in growth.

 

Walmart Liquidity Ratios 2021

Ratios

2021

2020 2019 2018

2017

Current Ratio

                          0.97

                   0.79

Cash Ratio

                          0.19

                   0.12

Quick Ratio

                          0.49

                   0.22

Net Working Capital

                    (18,143)

               (9,365)

 

Walmart Asset Utilization 2021

Ratios

2021

2020 2019 2018

2017

Total Asset Turnover

                          2.21

                   2.22

Fixed Asset Turnover

                          6.06

                   4.98

Days Sales Outstanding

                          4.25

                   4.38

Inventory Turnover

                        12.44

                 11.79

Accounts Receivable Turnover

                        85.81

                 83.38

Working Capital Turnover

                      (30.82)

               (55.95)

AP Turnover

                        11.38

                 11.15

Average Days Inventory

                          0.03

                   0.03

Average Days Payable

                          0.03

                   0.03

 

Walmart Profitability Ratios 2021

Ratios 2021 2020 2019 2018 2017
Return on Assets

6.21%

6.43%

Return on Equity

17.93%

18.64%

Net Profit Margin

2.81%

2.90%

Gross Profit Margin

24.83%

24.69%

Operating Profit Margin

4.39%

4.39%

Basic Earning Power

9.71%

9.72%

ROCE

15.34%

14.48%

Capital Employed

                    159,851

             158,705

ROIC

23.04%

18.25%

 

Walmart Long-term Debt 2021

Ratios

2021

2020 2019 2018

2017

Debt Ratio

16.31%

18.48%

Debt/Equity

47.06%

53.60%

Times Interest Earned

                        12.41

                   9.53