Walmart Financial Statements and Financial Ratios Analyzed from 2016 to 2020
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.
PDF/Downloadable Version
- Free Bonus Downloads: Annual Statements for the Last Five Years (10k reports)!
- **See Terms and Conditions.
Amazon.com Version
- No 10k annual reports.
Sample Financial Report
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 | |||