Stock Analysis on Net
Stock Analysis on Net

Walmart Inc. (NYSE:WMT)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Walmart Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Jan 31, 2024 18.50% = 6.15% × 3.01
Jan 31, 2023 15.23% = 4.80% × 3.17
Jan 31, 2022 16.42% = 5.58% × 2.94
Jan 31, 2021 16.69% = 5.35% × 3.12
Jan 31, 2020 19.93% = 6.29% × 3.17
Jan 31, 2019 9.20% = 3.04% × 3.02

Based on: 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), 10-K (reporting date: 2019-01-31).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Walmart Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Jan 31, 2024 18.50% = 2.41% × 2.55 × 3.01
Jan 31, 2023 15.23% = 1.93% × 2.49 × 3.17
Jan 31, 2022 16.42% = 2.41% × 2.32 × 2.94
Jan 31, 2021 16.69% = 2.43% × 2.20 × 3.12
Jan 31, 2020 19.93% = 2.86% × 2.20 × 3.17
Jan 31, 2019 9.20% = 1.31% × 2.33 × 3.02

Based on: 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), 10-K (reporting date: 2019-01-31).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Walmart Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Jan 31, 2024 18.50% = 0.74 × 0.89 × 3.70% × 2.55 × 3.01
Jan 31, 2023 15.23% = 0.67 × 0.89 × 3.22% × 2.49 × 3.17
Jan 31, 2022 16.42% = 0.74 × 0.90 × 3.60% × 2.32 × 2.94
Jan 31, 2021 16.69% = 0.66 × 0.90 × 4.09% × 2.20 × 3.12
Jan 31, 2020 19.93% = 0.75 × 0.88 × 4.31% × 2.20 × 3.17
Jan 31, 2019 9.20% = 0.61 × 0.82 × 2.61% × 2.33 × 3.02

Based on: 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), 10-K (reporting date: 2019-01-31).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Walmart Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Jan 31, 2024 6.15% = 2.41% × 2.55
Jan 31, 2023 4.80% = 1.93% × 2.49
Jan 31, 2022 5.58% = 2.41% × 2.32
Jan 31, 2021 5.35% = 2.43% × 2.20
Jan 31, 2020 6.29% = 2.86% × 2.20
Jan 31, 2019 3.04% = 1.31% × 2.33

Based on: 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), 10-K (reporting date: 2019-01-31).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Walmart Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Jan 31, 2024 6.15% = 0.74 × 0.89 × 3.70% × 2.55
Jan 31, 2023 4.80% = 0.67 × 0.89 × 3.22% × 2.49
Jan 31, 2022 5.58% = 0.74 × 0.90 × 3.60% × 2.32
Jan 31, 2021 5.35% = 0.66 × 0.90 × 4.09% × 2.20
Jan 31, 2020 6.29% = 0.75 × 0.88 × 4.31% × 2.20
Jan 31, 2019 3.04% = 0.61 × 0.82 × 2.61% × 2.33

Based on: 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), 10-K (reporting date: 2019-01-31).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Walmart Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Jan 31, 2024 2.41% = 0.74 × 0.89 × 3.70%
Jan 31, 2023 1.93% = 0.67 × 0.89 × 3.22%
Jan 31, 2022 2.41% = 0.74 × 0.90 × 3.60%
Jan 31, 2021 2.43% = 0.66 × 0.90 × 4.09%
Jan 31, 2020 2.86% = 0.75 × 0.88 × 4.31%
Jan 31, 2019 1.31% = 0.61 × 0.82 × 2.61%

Based on: 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), 10-K (reporting date: 2019-01-31).

The primary reason for the increase in net profit margin ratio over 2024 year is the increase in operating profitability measured by EBIT margin ratio.