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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.


IamaRead t1_j9f2eg8 wrote

5% operating profit are nothing to shun.


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 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.


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


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.