walmart roic vs costco roic on a chart
walmart roic vs costco roic on a chart
I'll create a chart comparing Walmart and Costco's ROIC (Return on Invested Capital). Let me first load the necessary financial data to calculate this.
Now I'll calculate ROIC using NOPAT (Net Operating Profit After Tax) / Invested Capital. Invested Capital = Total Debt + Total Equity - Excess Cash.
Here's the ROIC comparison chart between Walmart and Costco:
Walmart (WMT) vs Costco (COST) — Return on Invested Capital (Annual)
| Fiscal Year End | WMT ROIC | COST ROIC |
|---|---|---|
| FY22 (Jan/Aug '22) | 17.3% | 36.6% |
| FY23 (Jan/Aug '23) | 12.4% | 39.6% |
| FY24 (Jan/Aug '24) | 17.2% | 38.4% |
| FY25 (Jan/Aug '25) | 19.5% | 39.7% |
| FY26E (Jan '26) | 18.2% | — |
Key takeaways: - Costco consistently delivers ~2x higher ROIC than Walmart, hovering in the high-30s to ~40% range, reflecting its capital-light, membership-fee-driven model and minimal need for working capital. - Walmart's ROIC runs in the high teens, with a dip in FY23 (~12%) likely tied to margin pressure and inventory build-up, then recovering to ~19% as operating income improved. - The gap has remained remarkably stable over five years — a structural difference rather than a cyclical one.
ROIC defined as: NOPAT (Operating Income × (1 − Effective Tax Rate)) ÷ (Total Debt + Equity − Cash & Short-term Investments). FY26 WMT is the latest reported fiscal year ending Jan 2026.