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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Walmart Inc., economic profit calculation

US$ in millions

12 months ended:	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Net operating profit after taxes (NOPAT)¹	22,003)	18,517)	13,880)	15,307)	18,130)	18,200)
Cost of capital²	9.74%	9.53%	9.34%	9.32%	9.13%	8.88%
Invested capital³	161,279)	155,389)	149,558)	156,225)	164,411)	167,329)

Economic profit⁴	6,298)	3,714)	(89)	748)	3,125)	3,339)

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 22,003 – 9.74% × 161,279 = 6,298

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Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	Walmart Inc. economic profit increased from 2023 to 2024 and from 2024 to 2025.

Walmart Inc., NOPAT calculation

US$ in millions

12 months ended:	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Consolidated net income attributable to Walmart	19,436)	15,511)	11,680)	13,673)	13,510)	14,881)
Deferred income tax expense (benefit)¹	(663)	(171)	430)	(759)	1,998)	329)
Increase (decrease) in equity equivalents²	(663)	(171)	430)	(759)	1,998)	329)
Interest expense, debt and finance lease	2,728)	2,683)	2,128)	1,994)	2,315)	2,599)
Interest expense, operating lease liability³	931)	924)	858)	855)	877)	970)
Adjusted interest expense, debt and finance lease	3,659)	3,607)	2,986)	2,849)	3,192)	3,569)
Tax benefit of interest expense, debt and finance lease⁴	(768)	(757)	(627)	(598)	(670)	(750)
Adjusted interest expense, debt and finance lease, after taxes⁵	2,891)	2,849)	2,359)	2,251)	2,522)	2,820)
Interest income	(483)	(546)	(254)	(158)	(121)	(189)
Investment income, before taxes	(483)	(546)	(254)	(158)	(121)	(189)
Tax expense (benefit) of investment income⁶	101)	115)	53)	33)	25)	40)
Investment income, after taxes⁷	(382)	(431)	(201)	(125)	(96)	(149)
Net income (loss) attributable to noncontrolling interest	721)	759)	(388)	267)	196)	320)
Net operating profit after taxes (NOPAT)	22,003)	18,517)	13,880)	15,307)	18,130)	18,200)

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in equity equivalents to consolidated net income attributable to Walmart.

³ 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 14,324 × 6.50% = 931

⁴ 2025 Calculation
Tax benefit of interest expense, debt and finance lease = Adjusted interest expense, debt and finance lease × Statutory income tax rate
= 3,659 × 21.00% = 768

⁵ Addition of after taxes interest expense to consolidated net income attributable to Walmart.

⁶ 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 483 × 21.00% = 101

⁷ Elimination of after taxes investment income.

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Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	Walmart Inc. NOPAT increased from 2023 to 2024 and from 2024 to 2025.

Walmart Inc., cash operating taxes calculation

US$ in millions

12 months ended:	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Provision for income taxes	6,152)	5,578)	5,724)	4,756)	6,858)	4,915)
Less: Deferred income tax expense (benefit)	(663)	(171)	430)	(759)	1,998)	329)
Add: Tax savings from interest expense, debt and finance lease	768)	757)	627)	598)	670)	750)
Less: Tax imposed on investment income	101)	115)	53)	33)	25)	40)
Cash operating taxes	7,482)	6,392)	5,868)	6,080)	5,505)	5,296)

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

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Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	Walmart Inc. cash operating taxes increased from 2023 to 2024 and from 2024 to 2025.

Walmart Inc., invested capital calculation (financing approach)

US$ in millions

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Short-term borrowings	3,068)	878)	372)	410)	224)	575)
Long-term debt due within one year	2,598)	3,447)	4,191)	2,803)	3,115)	5,362)
Finance lease obligations due within one year	800)	725)	567)	511)	491)	511)
Long-term debt, excluding due within one year	33,401)	36,132)	34,649)	34,864)	41,194)	43,714)
Long-term finance lease obligations, excluding due within one year	5,923)	5,709)	4,843)	4,243)	3,847)	4,307)
Operating lease liability¹	14,324)	14,430)	14,301)	14,492)	14,375)	17,964)
Total reported debt & leases	60,114)	61,321)	58,923)	57,323)	63,246)	72,433)
Total Walmart shareholders’ equity	91,013)	83,861)	76,693)	83,253)	80,925)	74,669)
Net deferred tax (assets) liabilities²	5,271)	5,585)	5,766)	5,444)	6,609)	4,290)
Equity equivalents³	5,271)	5,585)	5,766)	5,444)	6,609)	4,290)
Accumulated other comprehensive (income) loss, net of tax⁴	13,605)	11,302)	11,680)	8,766)	11,766)	12,805)
Redeemable noncontrolling interest	271)	222)	237)	—)	—)	—)
Nonredeemable noncontrolling interest	6,408)	6,488)	7,061)	8,638)	6,606)	6,883)
Adjusted total Walmart shareholders’ equity	116,568)	107,458)	101,437)	106,101)	105,906)	98,647)
Construction in process⁵	(15,403)	(13,390)	(10,802)	(7,199)	(4,741)	(3,751)
Invested capital	161,279)	155,389)	149,558)	156,225)	164,411)	167,329)

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of equity equivalents to total Walmart shareholders’ equity.

⁴ Removal of accumulated other comprehensive income.

⁵ Subtraction of construction in process.

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Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	Walmart Inc. invested capital increased from 2023 to 2024 and from 2024 to 2025.

Walmart Inc., cost of capital calculations

Jan 31, 2025

	Capital (fair value)¹	Weights					Cost of capital
Equity²	684,238)	684,238)	÷	742,143)	=	0.92	0.92	×	10.23%	=	9.43%
Debt and finance lease obligations³	43,581)	43,581)	÷	742,143)	=	0.06	0.06	×	4.41% × (1 – 21.00%)	=	0.20%
Operating lease liability⁴	14,324)	14,324)	÷	742,143)	=	0.02	0.02	×	6.50% × (1 – 21.00%)	=	0.10%
Total:	742,143)					1.00					9.74%

Based on: 10-K (reporting date: 2025-01-31).

¹ US$ in millions

² Equity. See details »

³ Debt and finance lease obligations. See details »

⁴ Operating lease liability. See details »

Jan 31, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	488,962)	488,962)	÷	549,135)	=	0.89	0.89	×	10.23%	=	9.11%
Debt and finance lease obligations³	45,743)	45,743)	÷	549,135)	=	0.08	0.08	×	4.28% × (1 – 21.00%)	=	0.28%
Operating lease liability⁴	14,430)	14,430)	÷	549,135)	=	0.03	0.03	×	6.40% × (1 – 21.00%)	=	0.13%
Total:	549,135)					1.00					9.53%

Based on: 10-K (reporting date: 2024-01-31).

¹ US$ in millions

² Equity. See details »

³ Debt and finance lease obligations. See details »

⁴ Operating lease liability. See details »

Jan 31, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	375,801)	375,801)	÷	434,053)	=	0.87	0.87	×	10.23%	=	8.86%
Debt and finance lease obligations³	43,951)	43,951)	÷	434,053)	=	0.10	0.10	×	4.06% × (1 – 21.00%)	=	0.32%
Operating lease liability⁴	14,301)	14,301)	÷	434,053)	=	0.03	0.03	×	6.00% × (1 – 21.00%)	=	0.16%
Total:	434,053)					1.00					9.34%

Based on: 10-K (reporting date: 2023-01-31).

¹ US$ in millions

² Equity. See details »

³ Debt and finance lease obligations. See details »

⁴ Operating lease liability. See details »

Jan 31, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	400,219)	400,219)	÷	462,256)	=	0.87	0.87	×	10.23%	=	8.86%
Debt and finance lease obligations³	47,545)	47,545)	÷	462,256)	=	0.10	0.10	×	3.86% × (1 – 21.00%)	=	0.31%
Operating lease liability⁴	14,492)	14,492)	÷	462,256)	=	0.03	0.03	×	5.90% × (1 – 21.00%)	=	0.15%
Total:	462,256)					1.00					9.32%

Based on: 10-K (reporting date: 2022-01-31).

¹ US$ in millions

² Equity. See details »

³ Debt and finance lease obligations. See details »

⁴ Operating lease liability. See details »

Jan 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	371,093)	371,093)	÷	444,270)	=	0.84	0.84	×	10.23%	=	8.55%
Debt and finance lease obligations³	58,802)	58,802)	÷	444,270)	=	0.13	0.13	×	4.05% × (1 – 21.00%)	=	0.42%
Operating lease liability⁴	14,375)	14,375)	÷	444,270)	=	0.03	0.03	×	6.10% × (1 – 21.00%)	=	0.16%
Total:	444,270)					1.00					9.13%

Based on: 10-K (reporting date: 2021-01-31).

¹ US$ in millions

² Equity. See details »

³ Debt and finance lease obligations. See details »

⁴ Operating lease liability. See details »

Jan 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	322,795)	322,795)	÷	403,921)	=	0.80	0.80	×	10.23%	=	8.18%
Debt and finance lease obligations³	63,162)	63,162)	÷	403,921)	=	0.16	0.16	×	4.16% × (1 – 21.00%)	=	0.51%
Operating lease liability⁴	17,964)	17,964)	÷	403,921)	=	0.04	0.04	×	5.40% × (1 – 21.00%)	=	0.19%
Total:	403,921)					1.00					8.88%

Based on: 10-K (reporting date: 2020-01-31).

¹ US$ in millions

² Equity. See details »

³ Debt and finance lease obligations. See details »

⁴ Operating lease liability. See details »

Walmart Inc., economic spread ratio calculation, comparison to benchmarks

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Selected Financial Data (US$ in millions)
Economic profit¹	6,298)	3,714)	(89)	748)	3,125)	3,339)
Invested capital²	161,279)	155,389)	149,558)	156,225)	164,411)	167,329)
Performance Ratio
Economic spread ratio³	3.90%	2.39%	-0.06%	0.48%	1.90%	2.00%
Benchmarks
Economic Spread Ratio, Competitors⁴
Costco Wholesale Corp.	—	8.72%	3.88%	7.94%	6.33%	2.54%
Target Corp.	-0.02%	1.27%	-0.50%	12.38%	2.86%	1.48%

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 6,298 ÷ 161,279 = 3.90%

⁴ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	Walmart Inc. economic spread ratio improved from 2023 to 2024 and from 2024 to 2025.

Walmart Inc., economic profit margin calculation, comparison to benchmarks

	Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Selected Financial Data (US$ in millions)
Economic profit¹	6,298)	3,714)	(89)	748)	3,125)	3,339)
Net sales	674,538)	642,637)	605,881)	567,762)	555,233)	519,926)
Performance Ratio
Economic profit margin²	0.93%	0.58%	-0.01%	0.13%	0.56%	0.64%
Benchmarks
Economic Profit Margin, Competitors³
Costco Wholesale Corp.	—	1.15%	0.57%	1.13%	0.94%	0.45%
Target Corp.	-0.01%	0.41%	-0.14%	3.52%	0.93%	0.52%

Based on: 10-K (reporting date: 2025-01-31), 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31).

¹ Economic profit. See details »

² 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Net sales
= 100 × 6,298 ÷ 674,538 = 0.93%

³ Click competitor name to see calculations.

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Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	Walmart Inc. economic profit margin improved from 2023 to 2024 and from 2024 to 2025.

Walmart Inc. (NYSE:WMT)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin