Walmart Financial Statements and Financial Ratios Analyzed from 2016 to 2020

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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 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 provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is were I use plain English to explain concepts.

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

Sincerely,

Paul MBA.

Walmart Financial Report by Paul Borosky, MBA.
  • Company Report comes with a 7-day Limited 100% MONEY BACK GUARANTEE.
  • Free Bonus Downloads: Walmart's Annual Statements for the Last Five Years (10k reports)!

Sample Financial Report

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

Walmart 2020 - 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 2.2 million employees.  The main products sold would be durable and nondurable goods that may be offered at retail locations.

From a financial perspective, Walmart currently has a market cap of approximately $345 billion.  The firm’s beta is .28.  This indicates that the company is loosely correlated to the market and has a low correlation with that as well.  The 52-week stock range is from $98.85 to $128.08.

Walmart Financial Report Sources

"Walmart 2020 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 2016 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 2016 to 2020

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 2016 to 2020, in most cases.

Revenue Growth:  In 2016, Walmart achieved $482.1 billion in sales.  Five years later, in 2020, the firm exceeded $523.9 billion.  This is an average growth rate of approximately 2.1%.  This growth rate is about average for mature companies such as Walmart.  However, the organization should be seeking out other ventures or market opportunities to complement its retail and online store locations.  Without additional growth, the organization may find themselves stagnant or worse decline in revenues.

Cost of Goods Sold:  Walmart’s cost of goods sold in the last five years has ranged between 73.7% and 75.3%.  This narrow range shows that Walmart has optimized a business model that allows the firm to keep its prices low.  When price increases do happen, it seems like the organization has no problem with passing on the price elevation to loyal consumers.

Walmart Summary Income Statement 2020

Column1 2020 2019 2018 2017 2016
Revenues                  523,964                  514,405                  506,343                  485,873                    482,130
COGS                  394,605                  385,301                  373,396                  361,256                    360,984
Gross Profit                  129,359                  129,104                  132,947                  124,617                    121,146
SG&A                  108,791                  107,147                  106,510                  101,853                      97,041
Depreciation
R & D
Other
Operating Expenses
EBIT                    20,568                    21,957                    26,437                    22,764                      24,105
Other Income                            -                            -                            -                            -                             -
Interest Expense                      2,410                      2,129                      2,178                      2,267                        2,467
EBT                    20,116                    11,460                    15,123                    20,497                      21,638
Taxes                      4,915                      4,281                      4,600                      6,204                        6,558
Net Income                   15,201                     6,670                     9,862                   13,643                    15,080

Walmart Balance Sheet Analyzed 2016 to 2020

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 2015 to 2019.  Next, I then offer an analysis of Walmart's important balance sheet line item.

Cash:  Walmart ended 2016 with $8.7 billion in the bank.  As of 2020, their cash position slightly increased to $9.4 billion.  Because the organization has a continuous flow of cash daily, the firm may be able to exploit business models focused on low cash holdings.  However, what is slightly disturbing, though, is that Walmart has no short-term investments.  This indicates that the firm operates on literally a shoestring budget.  A better strategy would be to divert some of the cash into short-term investments.  By doing this, the company may have more funds available in case of financial distress or economic downturns.

 Accounts Receivable:  Walmart’s inventory position in 2016 was $44.4 billion.  As of 2020, their inventory position was still $44.4 billion.  Even though the company has grown by 2% or more in revenues annually, its inventory position stayed the same.  There are some speculations as to how this happens.  The most likely reason would be that the company may have optimized business models to exploit just-in-time inventory stocking procedures.

Walmart Summary Balance Sheet 2020

Column1 2020 2019 2018 2017 2016
Cash                        9,465                    7,722                    6,756                    6,867                    8,705
Short Term Investment                         -                         -                         -                         -
Account Receivable                        6,284                    6,283                    5,614                    5,835                    5,624
Inventory                      44,435                  44,269                  43,783                  43,046                  44,469
Other                         -                         -                         -                         -
Current Assets                    61,806                61,897                59,664                57,689                60,239
Net PPE                    105,208                104,317                107,675                107,710                110,171
Goodwill                      31,073                  31,181                  18,242                  17,037                  16,695
Other                              -                         -                         -                         -                         -
Total Assets                  236,495              219,295              204,522              198,825              199,581
Accounts Payable                      46,973                  47,060                  46,092                  41,433                  38,487
Accrued Expense                      22,296                  22,159                  22,122                  20,654                  19,607
Accrued Taxes                           280                       428                       645                       921                       521
Notes Payable                        5,362                    5,225                    5,257                    1,099                    2,708
LT Debt - Current                           511                       729                       667                    2,256                    2,745
Other                              -                         -                         -                         -                         -
Total Current Liabilities                      77,790                  77,477                  78,521                  66,928                  64,619
LT Debt                      43,714                  50,203                  36,825                  42,018                  44,030
Other                              -                         -                         -                         -                         -
Total Liabilities                  154,943                50,203                36,825                42,018                44,030
Common Stock                        3,531                    3,253                    2,943                    2,676                    2,122
Treasury                              -                         -                         -                         -                         -
Retained Earnings                      83,943                  80,785                  85,107                  89,354                  90,021
Other                         -                         -                         -                         -
Total Equity                    81,552                79,634                80,822                80,535                83,611
Total Equity & Liability                  236,495              219,295              204,522              198,825              199,581

Walmart's Financial Ratio Summary From 2016 to 2020

For this section, I have chosen several different financial ratios to review for Walmart from 2016 to 2020.  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 ended 2016 with a current ratio of .93.  However, over the next five years, the company would gradually decrease its current ratio to a .79.  In most industries, having a current ratio below 1.0 is cause for concern and may indicate short to medium-term solvency issues.  In Walmart’s case, though, because the organization continuously receives cash daily, the firm seems to be exploiting a low cash position, which enables the firm to invest money in other areas of their business for growth or afford to pay higher dividend payouts to shareholders.

Walmart's Total Asset Turnover: 

Walmart’s total asset turnover ended 2016 at 2.4.  In 2020, their total asset turnover fell to 2.2.  This shows that the company has become less effective with exploiting optimal asset utilization.  To improve this ratio, the company needs to further divest underperforming assets like stores or unused storage facilities.

Walmart's Return on Equity: 

Walmart's return on equity ended 2016 at 18%.  Over the next several years, the return on equity would fall as low as 8.38%.  Fortunately, in 2020, the return on equity rebounded to 18.6%.  If the organization is to continue this trend, the firm may need to borrow more money.  When the organization borrows additional funds, they will be able to use those funds for growth as compared to using equity.  Unfortunately, with this strategy, the company is also increasing its solvency risk.  In other words, the more debt the firm takes on, the more likely they may have financial issues with paying back interest and principal payments.

Walmart's Debt Ratio: 

Walmart’s debt ratio ended 2016 at 22%.  Over the next several years, Walmart’s debt position would increase to approximately 22.9%.  In 2020 though, the firm lowered its deposition to 18.4%.  By doing this, the company may be positioning themselves to refinance current debt at lower interest rates.  Also, the less debt enables the firm to better weather recessionary times.  However, interest rates will eventually rise.  When this happens, Walmart may miss out on low rate opportunities.

 

Walmart 2020 Liquidity Ratios

Ratios 2020 2019 2018 2017 2016
Current Ratio                           0.79                    0.80
Cash Ratio                           0.12                    0.10
Quick Ratio                           0.22                    0.23
Net Working Capital                       (9,365)              (11,373)

Walmart 2020 Asset Utilization

Ratios 2020 2019 2018 2017 2016
Total Asset Turnover                           2.22                    2.35
Fixed Asset Turnover                           4.98                    4.93
Days Sales Outstanding                           4.38                    4.46
Inventory Turnover                         11.79                  11.62
Accounts Receivable Turnover                         83.38                  81.87
Working Capital Turnover                       (55.95)                (45.23)
AP Turnover                         11.15                  10.93
Average Days Inventory                           0.03                    0.03
Average Days Payable                           0.03                    0.03

Walmart 2020 Profitability Ratios

Ratios 2020 2019 2018 2017 2016
Return on Assets 6.43% 3.04%
Return on Equity 18.64% 8.38%
Net Profit Margin 2.90% 1.30%
Gross Profit Margin 24.69% 25.10%
Operating Profit Margin 3.93% 4.27%
Basic Earning Power 8.70% 10.01%
ROCE 12.96% 15.48%
Capital Employed                     158,705              141,818
ROIC 16.22% 14.80%

Walmart 2020 Long-term Debt

Ratios 2020 2019 2018 2017 2016
Debt Ratio 18.48% 22.89%
Debt/Equity 53.60% 63.04%
Times Interest Earned                           8.53                  10.31