The review of Net Profit Marginwitnessed a fluctuating trend. The Net Profit Margin moved from2.84% in 2019 to 2.39% in 2023.
The average EBIT Margin for the period under analysis was 3.75%, with 2022 and 2019performing the worst and best, respectively.
In the current year, WALMART was able to cover its interest liabilities 8.86 times – compared to 2019 when it was 8.62 times.
The Asset turnover stood at2.56 times in 2023 from 2.22in 2019,implying a high performance on Assets of the business in relation to revenue.
Profitability
The revenue of WALMART has fluctuatedyear on year. The revenue increased by 6.72% between 2019 and 2020 and a further 6.73% increase was recorded between 2021 and 2022. There also occurred an increase of 6.03% between 2022 and 2023 (the current period).
Walmart’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks fair, as current ratio increased from 0.82:1 to 0.83:1on the last year. Which implies that the company has enough assets to settle its current liabilities.
Capital Structure
Walmart is both equity and debt financed.
The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 73% in the current year.
