Walmart Inc (WMT)
Return on equity (ROE)
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 15,511,000 | 11,680,000 | 13,673,000 | 13,510,000 | 14,881,000 |
| Total stockholders’ equity | US$ in thousands | 83,861,000 | 76,693,000 | 83,253,000 | 80,925,000 | 74,669,000 |
| ROE | 18.50% | 15.23% | 16.42% | 16.69% | 19.93% |
January 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $15,511,000K ÷ $83,861,000K
= 18.50%
Walmart Inc's return on equity (ROE) has shown a fluctuating trend over the past five years. In fiscal year 2024, the ROE improved to 18.50%, indicating that the company generated $18.50 in net income for each dollar of shareholder equity. This represents an increase from the previous year's ROE of 15.23%.
Despite this improvement, the ROE in 2024 remains lower than the levels seen in fiscal years 2020 and 2021, when it stood at 19.93% and 16.69% respectively. It is, however, slightly higher than the ROE reported in fiscal year 2022, which was 16.42%.
Overall, Walmart Inc's ROE performance suggests that the company is effectively utilizing its equity to generate profits for its shareholders, but there may be room for further optimization to reach or exceed historical highs. It is essential for investors and analysts to closely monitor the trend in ROE to assess the company's profitability and efficiency in utilizing its shareholders' investments.
Peer comparison
Jan 31, 2024