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.
Peer comparison
Jan 31, 2024