Walmart Financial Statements and Financial Ratios Analyzed from 2017 to 2021
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 its 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. (Updated 2021)
PDF/Downloadable Version
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- Included - Expert financial analysis done by Paul Borosky MBA.
- Included - Analyst "Letter Grades" for ratios.
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Sample Financial Report
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 |
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| 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 |
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| 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 |
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| Ratios |
2021 |
2020 | 2019 | 2018 |
2017 |
| Current Ratio |
0.97 |
0.79 |
|
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| Cash Ratio |
0.19 |
0.12 |
|
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| Quick Ratio |
0.49 |
0.22 |
|
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| Net Working Capital |
(18,143) |
(9,365) |
|
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Walmart Asset Utilization 2021 |
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| Ratios |
2021 |
2020 | 2019 | 2018 |
2017 |
| Total Asset Turnover |
2.21 |
2.22 |
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| Fixed Asset Turnover |
6.06 |
4.98 |
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| Days Sales Outstanding |
4.25 |
4.38 |
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| Inventory Turnover |
12.44 |
11.79 |
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| Accounts Receivable Turnover |
85.81 |
83.38 |
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| Working Capital Turnover |
(30.82) |
(55.95) |
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| AP Turnover |
11.38 |
11.15 |
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| Average Days Inventory |
0.03 |
0.03 |
|||
| Average Days Payable |
0.03 |
0.03 |
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Walmart Profitability Ratios 2021 |
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| Ratios | 2021 | 2020 | 2019 | 2018 | 2017 |
| Return on Assets |
6.21% |
6.43% |
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| Return on Equity |
17.93% |
18.64% |
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| Net Profit Margin |
2.81% |
2.90% |
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| Gross Profit Margin |
24.83% |
24.69% |
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| Operating Profit Margin |
4.39% |
4.39% |
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| Basic Earning Power |
9.71% |
9.72% |
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| ROCE |
15.34% |
14.48% |
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| Capital Employed |
159,851 |
158,705 |
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| ROIC |
23.04% |
18.25% |
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Walmart Long-term Debt 2021 |
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| Ratios |
2021 |
2020 | 2019 | 2018 |
2017 |
| Debt Ratio |
16.31% |
18.48% |
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| Debt/Equity |
47.06% |
53.60% |
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| Times Interest Earned |
12.41 |
9.53 |
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