Walmart Inc. Financial Statements and Financial Ratios Analyzed from 2015 to 2019
"Walmart 2019 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 2015 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.
Walmart's Financial Statement Summary From 2015 to 2019
In the last five years, between 2015 to 2019, Walmart’s revenues, documented in their 10k annual report, have grown moderately. On average, Walmart’s annual revenue growth was approximately 1%. However, in the same timeframe, Walmart’s net income has dropped from 17 billion to just over $6.6 billion. This shows that the organization’s cost has grown substantially over these five years. Further, Walmart has failed to pass on the increased costs to the customers. This strategy, unfortunately, is not sustainable for the long term. Inevitably, the organization will start taking losses.
As for Walmart’s balance sheet, this financial document is almost as concerning as its income statement, which was again found on Walmart’s 10K annual reports from 2015 to 2019. A primary area of concern on the company’s balance sheet was its continuous increase in long-term debt. In 2015, Walmart had approximately 41 billion in long-term debt. Their debt position grew substantially over the next five years to 50.2 billion. Not only does this indicate a change in capital structure, but it also increases financial risk considerably for the company. For more details about Walmart and its financial position, check out my book.
Walmart Income Statement 2019 |
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| Column1 | 2019 | 2018 | 2017 | 2016 | 2015 |
| Revenues | 514,405 | 506,343 | 485,873 | 482,130 | 485,651 |
| COGS | 385,301 | 373,396 | 361,256 | 360,984 | 365,086 |
| Gross Profit | 129,104 | 132,947 | 124,617 | 121,146 | 120,565 |
| SG&A | 107,147 | 106,510 | 101,853 | 97,041 | 93,418 |
| Depreciation | |||||
| R & D | |||||
| Other | |||||
| Operating Expenses | |||||
| EBIT | 21,957 | 26,437 | 22,764 | 24,105 | 27,147 |
| Other Income | 8,368 | - | - | - | - |
| Interest Expense | 2,129 | 2,178 | 2,267 | 2,467 | 2,348 |
| EBT | 11,460 | 15,123 | 20,497 | 21,638 | 24,799 |
| Taxes | 4,281 | 4,600 | 6,204 | 6,558 | 7,985 |
| Net Income | 6,670 | 9,862 | 13,643 | 15,080 | 17,099 |
| Tax Rate | 37.4% | 30.4% | 30.3% | 30.3% | 32.2% |
Walmart Balance Sheet 2019 |
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| Column1 | 2019 | 2018 | 2017 | 2016 | 2015 |
| Cash | 7,722 | 6,756 | 6,867 | 8,705 | 9,135 |
| Short Term Investment | - | - | - | - | - |
| Account Receivable | 6,283 | 5,614 | 5,835 | 5,624 | 6,778 |
| Inventory | 44,269 | 43,783 | 43,046 | 44,469 | 45,141 |
| Other | - | - | - | - | - |
| Current Assets | 61,897 | 59,664 | 57,689 | 60,239 | 63,278 |
| Net PPE | 104,317 | 107,675 | 107,710 | 110,171 | 114,280 |
| Goodwill | 31,181 | 18,242 | 17,037 | 16,695 | 18,102 |
| Other | - | - | 9,921 | 6,131 | 5,671 |
| Total Assets | 219,295 | 204,522 | 198,825 | 199,581 | 203,706 |
| Accounts Payable | 47,060 | 46,092 | 41,433 | 38,487 | 38,410 |
| Accrued Expense | 22,159 | 22,122 | 20,654 | 19,607 | 19,152 |
| Accrued Taxes | 428 | 645 | 921 | 521 | 1,021 |
| Notes Payable | 5,225 | 5,257 | 1,099 | 2,708 | 1,592 |
| LT Debt - Current | 729 | 667 | 2,256 | 2,745 | 4,810 |
| Other | - | - | - | - | - |
| Total Current Liabilities | 77,477 | 78,521 | 66,928 | 64,619 | 65,272 |
| LT Debt | 50,203 | 36,825 | 42,018 | 44,030 | 41,086 |
| Other | 11,981 | 8,354 | 9,344 | 7,321 | 8,805 |
| Total Liabilities | 62,184 | 45,179 | 51,362 | 51,351 | 49,891 |
| Common Stock | 3,253 | 2,943 | 2,676 | 2,122 | 323 |
| Treasury | - | - | - | - | - |
| Retained Earnings | 80,785 | 85,107 | 89,354 | 90,021 | 85,777 |
| Other | - | - | - | - | - |
| Total Equity | 79,634 | 80,822 | 80,535 | 83,611 | 81,394 |
| Total Equity & Liability | 219,295 | 204,522 | 198,825 | 199,581 | 203,706 |
Walmart's Financial Ratio Summary From 2015 to 2019
In this book, Walmart's financial ratios were analyzed. Some of the ratios assessed were liquidity ratios, such as current ratio and quick ratio, asset utilization ratios, such as total asset turnover, and inventory turnover, profitability ratios, which included return on assets and returned on equity. Then there were long-term debt ratios, which included debt ratio, and at times interest earned.
Through analyzing Walmart’s financial ratios from 2015 to 2019, some interesting findings were noted in the book below. To illustrate, the organization has continually decreased its return on assets ratio. In 2015, Walmart was enjoying in 8.39% return on assets. However, over the next five years, this ratio would fall to 3.04%. This indicates that the company is utilizing more assets to generate less revenues. For more information and analysis, check out our book below.
Walmart Liquidity Ratios 2019 |
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| Ratios | 2019 | 2018 | 2017 | 20182 | 2015 |
| Current Ratio | 0.80 | 0.76 | 0.86 | 0.93 | 0.97 |
| Cash Ratio | 0.10 | 0.09 | 0.10 | 0.13 | 0.14 |
| Quick Ratio | 0.23 | 0.20 | 0.22 | 0.24 | 0.28 |
| Net Working Capital | (11,373) | (12,706) | (7,260) | 183 | 2,471 |
Walmart Asset Utilization 2019 |
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| Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
| Total Asset Turnover | 2.35 | 2.48 | 2.44 | 2.42 | 2.38 |
| Fixed Asset Turnover | 4.93 | 4.70 | 4.51 | 4.38 | 4.25 |
| Days Sales Outstanding | 4.46 | 4.05 | 4.38 | 4.26 | 5.09 |
| Inventory Turnover | 11.62 | 11.56 | 11.29 | 10.84 | 10.76 |
| Accounts Receivable Turnover | 81.87 | 90.19 | 83.27 | 85.73 | 71.65 |
| Working Capital Turnover | (45.23) | (39.85) | (66.92) | 2,634.59 | 196.54 |
| AP Turnover | 10.93 | 10.99 | 11.73 | 12.53 | 12.64 |
| Average Days Inventory | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
| Average Days Payable | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 |
Walmart Profitability Ratios 2019 |
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| Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
| Return on Assets | 3.04% | 4.82% | 6.86% | 7.56% | 8.39% |
| Return on Equity | 8.38% | 12.20% | 16.94% | 18.04% | 21.01% |
| Net Profit Margin | 1.30% | 1.95% | 2.81% | 3.13% | 3.52% |
| Gross Profit Margin | 25.10% | 26.26% | 25.65% | 25.13% | 24.83% |
| Operating Profit Margin | 4.27% | 5.22% | 4.69% | 5.00% | 5.59% |
| Basic Earning Power | 10.01% | 12.93% | 11.45% | 12.08% | 13.33% |
| ROCE | 15.48% | 20.98% | 17.26% | 17.86% | 19.61% |
| Capital Employed | 141,818 | 126,001 | 131,897 | 134,962 | 138,434 |
| ROIC | 14.80% | 19.37% | 15.80% | 15.22% | 15.77% |
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