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 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 2022)

PDF/Downloadable Version

Sample Financial Report

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

Walmart 2022 - Brief Company Summary

Walmart is a retail store (Walmart Stores) and wholesale outlet (Sam’s Club).  The company generates revenues through three main business segments, which are Walmart U.S., Walmart International, and Sam’s Club.  Specifically, Walmart operates supercenters, supermarkets, warehouse clubs, and eCommerce websites.  The main revenue generators from Walmart would include grocery products, including dry grocery products, deli and bakery, frozen foods, and alcoholic and nonalcoholic beverages.  In addition, secondary revenue generators are gasoline stations and tobacco sales.

From a financial perspective, as of February 2022, Walmart’s market capitalization is $382.7 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 $137.99.  The organization’s current dividend yield is approximately 11.62%.  Finally, important competitors for the organization would be Target as well as Amazon.com (2/22).

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 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 2017 to 2021, in most cases.

Revenue Growth:

Walmart ended 2017 with revenues of approximately $485 billion.  In the next four years, the organization will continually grow revenues.  This growth would result in revenues of $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

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 in 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

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 is 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 its current ratio by investing in more stores or increasing its 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 humble opinion, would be for the organization to take on more debt, buy back stock, and invest in growth.