[OC] How Walmart makes money (they just released earnings for the fiscal year ending January 31)Shadowtirs t1_j9f08i2 wrote
I think what's funny/interesting here is despite the visual, in reality 20 billion dollars is a substantial and incredible amount of money.
IncomeStatementGuy OP t1_j9f0ooa wrote
Agree - their net income looks even tinier in the visual because it's just 2% of revenue.
But its 11 billion dollars.
Achillies2heel t1_j9f5c18 wrote
Welcome to traditional retail... Terrible margins. Walmart is huge though. Perspective
surmatt t1_j9ieezh wrote
Kinda blows me away how high their COGS is. Every retailer I sell to aims for 40% gross margin.
Dracovius1988 t1_j9iglg2 wrote
Walmarts business model is to run prices suicidally low and strong-arm the competition with volume.
EssaySimple5581 t1_j9maxkj wrote
Also there is alot of operation cost that they profit from through subsidiaries. This chart is desgned to make it look like it makes less money than it actually does
Shadowtirs t1_j9f103x wrote
Yeah I just saw that too funny enough. Even still though, 11 billion dollars I mean even with just conservative investment compound interest alone would generate such wealth. And this is off one year.
The amounts of money is so staggering.
csjerk t1_j9hmawe wrote
That amount of money, invested, would generate incredible wealth _because_ you would be putting it in stocks of companies like this.
SamFish3r t1_j9gpyql wrote
Need to see target and Costco as well
Im_homer_simpson t1_j9hot7x wrote
They also got 5 billion in membership fees from Sam's club.
Prime_Millenial t1_j9hxrp3 wrote
They have Walmart plus too, so most is probably Sams Club but not all.
IamaRead t1_j9f2eg8 wrote
5% operating profit are nothing to shun.
Achillies2heel t1_j9f5vxb wrote
3% EBITA less than 2% after...
svn380 t1_j9f49zw wrote
-
dividends are paid out of net profits, so that doesn't change the $11 billion figure
-
$30+ million salary for someone running a machine that makes $11 Billion in a bad year.....as a shareholder, would you vote for that?
IamaRead t1_j9f5qmd wrote
As shareholder (not of Walmart) I voted against all pay increases for CEOs and alike when I could.
Plus_Professor_1923 t1_j9f9pdy wrote
Relativity enters the chat
MrMitchWeaver t1_j9fqm4i wrote
I'm more surprised that they only have about a 2% net profit margin
oby100 t1_j9gh3mr wrote
That’s how Walmart annihilated mom and pop shops. Low margin times massive scale still equals massive profits, but no small shop can possibly operate on such low margins.
The real tragedy is when a Walmart kills all the small stores, but then the location closes for not being profitable enough
[deleted] t1_j9fflzo wrote
[removed]
bolteon593 t1_j9ihplu wrote
That pretty irrelevant… making a lot of money is pointless if you’ve only made it by the skin of your teeth.
Viewing a single comment thread. View all comments