Walmart Inc. — Form 10-K Summary
Reporting period: Fiscal year ended January 31, 2024 (fiscal 2024), compared with fiscal 2023. Although the request identifies “2023 Q4,” this filing is an annual report; it does not provide a standalone fourth-quarter results summary. Figures are in U.S. dollars unless stated otherwise. Per-share and share data reflect the February 2024 3-for-1 stock split.
Business context
Walmart operates through Walmart U.S., Walmart International and Sam’s Club, combining stores, eCommerce and related services. It reported 10,616 retail units across 19 countries at fiscal year-end and approximately 2.1 million associates. Management’s strategy emphasizes everyday low prices and costs, omnichannel shopping, technology and automation, and growth in areas such as advertising, marketplace and fulfillment services.
Financial performance
| Metric | Fiscal 2024 | Fiscal 2023 |
|---|---|---|
| Total revenue | $648.1 billion | $611.3 billion |
| Net sales | $642.6 billion; up 6.1% | $605.9 billion; up 6.7% |
| Gross profit as % of net sales | 23.7% | 23.5% |
| Operating income | $27.0 billion; 4.2% of net sales | $20.4 billion; 3.4% of net sales |
| Consolidated net income | $16.3 billion | $11.3 billion |
| Net income attributable to Walmart | $15.5 billion | $11.7 billion |
| Diluted EPS | $1.91 | $1.42 |
| Cash from operations | $35.7 billion | $28.8 billion |
| Free cash flow | $15.1 billion | $12.0 billion |
| Capital expenditures | $20.6 billion | $16.9 billion |
U.S. comparable sales, including fuel, grew 4.9%, versus 8.2% in fiscal 2023. Walmart U.S. sales were $441.8 billion, International sales $114.6 billion and Sam’s Club sales $86.2 billion. Walmart U.S. eCommerce sales were $65.4 billion; International eCommerce sales were $24.8 billion; and Sam’s Club eCommerce sales were $9.9 billion.
Cash and cash equivalents were $9.9 billion. Long-term debt, including amounts due within one year, was $39.6 billion; short-term borrowings were $0.9 billion. The company had $15.0 billion in undrawn U.S. committed credit lines. Working capital was negative $15.5 billion, which management attributes to its operating model and cash management.
Changes versus the prior year
- Revenue grew 6.0%, while operating income rose about 32%, and operating margin increased from 3.4% to 4.2%.
- Gross margin improved 20 basis points. Management cited price management and fewer markdowns than in the prior year, partly offset by a shift toward lower-margin merchandise.
- Operating expenses as a percentage of sales fell 60 basis points, partly because fiscal 2023 included approximately $3.3 billion of opioid-related settlement charges and $0.8 billion of International restructuring charges.
- Operating cash flow increased $6.9 billion. Management cited higher cash from operating income, payment timing and inventory management, partly offset by payment of remaining accrued opioid settlements.
- Capital expenditures increased $3.7 billion. Share repurchases fell to $2.8 billion from $9.9 billion; dividends paid were approximately $6.1 billion in both years.
- Other gains and losses were a net loss of $3.0 billion, compared with a $1.5 billion net loss. Fiscal 2024 included investment fair-value losses; the filing identifies approximately $3.8 billion of losses from fair-value changes and related investment activity.
Outlook, commentary and risks
Management projects fiscal 2025 capital expenditures of approximately $20 billion to $24 billion, focused on technology, supply chain and customer-facing initiatives. The company approved a fiscal 2025 annual dividend of $0.83 per share, up from $0.76. Management says liquidity should be sufficient for operations, investment, dividends and repurchases for at least the next 12 months and the foreseeable future; this is a forward-looking assessment, not a guarantee.
Management cited continuing uncertainty from inflation, consumer confidence and employment trends, supply-chain pressures and global health risks. Other material risks include intense retail and digital competition; execution and returns on eCommerce, technology and automation investments; labor costs and availability; foreign exchange, interest rates and trade or tax changes; cybersecurity and system disruptions; product safety and supplier reliability; and regulatory, reputational and climate-related risks. The filing says the company was upgrading its financial system in stages; management and the auditor reported effective internal control over financial reporting at year-end.
Contingencies and unusual items: Walmart accrued approximately $3.3 billion for opioid-related settlements in fiscal 2023; substantially all had been paid by January 31, 2024. Other opioid litigation remains, including a two-county judgment under appeal and DOJ claims, although a March 2024 court ruling dismissed the DOJ’s distribution claims and one dispensing theory. The company also disclosed FTC money-transfer litigation and an early-stage Mexican antitrust proceeding; it could not reasonably estimate losses in these matters. Ernst & Young issued unqualified opinions on the financial statements and internal controls.
Important facts for investors to verify
- Confirm the period being analyzed: the filing covers the full fiscal year ended January 31, 2024, not a standalone 2023 fourth quarter.
- Review whether operating-income growth is sustainable after the prior-year opioid and restructuring charges are no longer a comparison benefit.
- Track returns from the planned $20–$24 billion fiscal 2025 capital-spending program and the growth and profitability of eCommerce and higher-margin services.
- Assess cash generation alongside working-capital needs, debt maturities, lease obligations and the company’s dividend and repurchase plans.
- Monitor remaining opioid, FTC, Mexico antitrust and other legal matters, including changes to estimated exposure or outcomes.
- Consider the volatility of investment fair-value changes, foreign exchange and the risks of financial-system upgrades and cybersecurity incidents.