Walmart Inc (WMT)
Return on total capital
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 29,037,000 | 27,012,000 | 19,144,000 | 25,942,000 | 22,879,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 91,013,000 | 83,861,000 | 76,693,000 | 83,253,000 | 81,298,000 |
| Return on total capital | 31.90% | 32.21% | 24.96% | 31.16% | 28.14% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $29,037,000K ÷ ($—K + $91,013,000K)
= 31.90%
To analyze Walmart Inc's return on total capital over the past five years, the following data is provided:
- January 31, 2021: 28.14%
- January 31, 2022: 31.16%
- January 31, 2023: 24.96%
- January 31, 2024: 32.21%
- January 31, 2025: 31.90%
Walmart Inc's return on total capital has shown a generally positive trend over the period under consideration, starting at 28.14% in January 2021 and peaking at 32.21% in January 2024. This indicates the company's ability to generate profits relative to its total capital investment.
The fluctuation in return on total capital between the years may be attributed to various factors such as changes in the company's profitability, efficiency of capital utilization, and overall financial performance.
Overall, the consistent improvement in return on total capital from 2021 to 2024, followed by a slight decrease in 2025, suggests that Walmart Inc has been effectively utilizing its capital resources to generate returns for its stakeholders. This positive trend is indicative of the company's financial strength and operating efficiency during the period analyzed.
Peer comparison
Jan 31, 2025