Walmart's Financial Health: ROCE and ROE Performance
The financial health of Walmart Inc. (WMT) has been examined through various key financial ratios, including return on capital employed (ROCE) and return on equity (ROE). According to Value Research, ROCE is calculated as earnings before interest and taxes divided by the average net worth plus total debt, multiplied by 100. For WMT, the TTM data shows a ROCE of 13.78%, while its peer median stands at --%.
Another important ratio is ROE, which measures profit after tax divided by average net worth, multiplied by 100. Walmart's ROE for the same period is 22.05%, outperforming its peers by 9.03%. This indicates a strong ability to generate returns from shareholder equity.