Walmart Return On Equity vs. Current Ratio

WMT
 Stock
  

USD 148.78  0.23  0.15%   

For Walmart profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Walmart to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Walmart utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Walmart's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Walmart over time as well as its relative position and ranking within its peers. Check out Your Current Watchlist.
  
Walmart Price to Sales Ratio is comparatively stable at the moment as compared to the past year. Walmart reported Price to Sales Ratio of 0.51 in 2021. Return on Sales is likely to gain to 0.06 in 2022, whereas Sales per Share is likely to drop 173.40 in 2022. Walmart Net Income is comparatively stable at the moment as compared to the past year. Walmart reported Net Income of 13.67 Billion in 2021. Net Income to Non Controlling Interests is likely to gain to about 594 M in 2022, whereas Net Income Common Stock is likely to drop slightly above 12.4 B in 2022.

Walmart Revenues

507.01 Billion

Is Walmart's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Walmart. If investors know Walmart will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Walmart listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.237
Market Capitalization
402.1 B
Quarterly Revenue Growth YOY
0.087
Return On Assets
0.0611
Return On Equity
0.1065
The market value of Walmart is measured differently than its book value, which is the value of Walmart that is recorded on the company's balance sheet. Investors also form their own opinion of Walmart's value that differs from its market value or its book value, called intrinsic value, which is Walmart's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Walmart's market value can be influenced by many factors that don't directly affect Walmart's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Walmart's value and its price as these two are different measures arrived at by different means. Investors typically determine Walmart value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Walmart's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Walmart Current Ratio vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Walmart's current stock value. Our valuation model uses many indicators to compare Walmart value to that of its competitors to determine the firm's financial worth.
Walmart is rated first in return on equity category among related companies. It is rated first in current ratio category among related companies fabricating about  8.17  of Current Ratio per Return On Equity. Walmart Current Ratio is comparatively stable at the moment as compared to the past year. Walmart reported Current Ratio of 0.93 in 2021. Comparative valuation analysis is a catch-all model that can be used if you cannot value Walmart by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Walmart's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Walmart's earnings, one of the primary drivers of an investment's value.

Walmart Current Ratio vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Walmart 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
0.11 %
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Walmart 
Current Ratio 
 = 
Current Asset 
Current Liabilities 
0.87 X
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1).

Walmart Current Ratio Comparison

Walmart is currently under evaluation in current ratio category among related companies.

Walmart Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Walmart, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Walmart will eventually generate negative long term returns. The profitability progress is the general direction of Walmart's change in net profit over the period of time. It can combine multiple indicators of Walmart, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.

Walmart Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Walmart. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Walmart position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Walmart's important profitability drivers and their relationship over time.

Use Walmart in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Walmart position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Walmart will appreciate offsetting losses from the drop in the long position's value.

Walmart Pair Trading

Walmart Pair Trading Analysis

The ability to find closely correlated positions to Walmart could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Walmart when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Walmart - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Walmart to buy it.
The correlation of Walmart is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Walmart moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Walmart moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Walmart can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Walmart position

In addition to having Walmart in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Corporate Bonds Thematic Idea Now

Corporate Bonds
Corporate Bonds Theme
Funds or Etfs investing in different types of corporate debt instruments. The Corporate Bonds theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corporate Bonds Theme or any other thematic opportunities.
View All  Next Launch
Check out Your Current Watchlist. You can also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

Complementary Tools for analysis

When running Walmart price analysis, check to measure Walmart's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Walmart is operating at the current time. Most of Walmart's value examination focuses on studying past and present price action to predict the probability of Walmart's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Walmart's price. Additionally, you may evaluate how the addition of Walmart to your portfolios can decrease your overall portfolio volatility.
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Go
To fully project Walmart's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Walmart at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Walmart's income statement, its balance sheet, and the statement of cash flows.
Potential Walmart investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Walmart investors may work on each financial statement separately, they are all related. The changes in Walmart's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Walmart's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.