Walmart Inc (WMT)

Return on total capital

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	27,012,000	20,428,000	25,942,000	22,548,000	20,568,000
Long-term debt	US$ in thousands	36,132,000	34,649,000	34,864,000	41,194,000	43,714,000
Total stockholders’ equity	US$ in thousands	83,861,000	76,693,000	83,253,000	80,925,000	74,669,000
Return on total capital		22.51%	18.35%	21.96%	18.46%	17.37%

January 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $27,012,000K ÷ ($36,132,000K + $83,861,000K)
= 22.51%

Walmart Inc's return on total capital has shown a positive trend over the past five years. The company's return on total capital increased from 17.37% in January 2020 to 22.51% in January 2024, indicating improved efficiency in generating profits relative to the total capital employed.

The consistent growth in return on total capital reflects Walmart's ability to effectively utilize its capital resources to generate higher returns for its shareholders over the years. This improvement suggests that Walmart is efficiently managing its capital structure and investments, resulting in enhanced profitability and value creation for its stakeholders.

Overall, the increasing trend in return on total capital demonstrates Walmart's strong performance in generating returns from its total capital base and highlights the company's financial strength and operational effectiveness over the analyzed period.