/basic-financials WMT 2024 TGT 2024
Skill_Version: 1.0 Student: elena Model: sonnet-4-6 Date: 2026-06-17
AI: Comparing Walmart FY2024 vs. Target FY2024.
Note: All dollar amounts are in thousands. For example, $106,566,000 means approximately $106.6 billion in actual dollars.
Income Statement
| Walmart (FY2024) | Target (FY2024) | |
|---|---|---|
| Net Revenue | $680,985,000 | $106,566,000 |
| Cost of Goods (COGS) | $511,753,000 | $76,502,000 |
| Gross Margin | $169,232,000 | $30,064,000 |
| SG&A | $139,884,000 | $21,969,000 |
| Operating Profit | $29,348,000 | $5,566,000 |
| Net Profit | $19,436,000 | $4,091,000 |
Key Ratios
| Walmart (FY2024) | Target (FY2024) | |
|---|---|---|
| Gross Margin % | 24.9% | 28.2% |
| SG&A % of Revenue | 20.5% | 20.6% |
| Operating Margin % | 4.3% | 5.2% |
| Net Profit Margin % | 2.9% | 3.8% |
Balance Sheet
| Walmart (FY2024) | Target (FY2024) | |
|---|---|---|
| Inventory | $56,435,000 | $12,740,000 |
| Current Assets | $79,458,000 | $19,454,000 |
| Total Assets | $260,823,000 | $57,769,000 |
| Current Liabilities | $96,584,000 | $20,799,000 |
| Total Liabilities | $169,810,000 | $43,103,000 |
| Total Equity | $91,013,000 | $14,666,000 |
I’ve pulled up Walmart FY2024 (Discount Store) vs. Target FY2024 (Discount Store). What would you like to understand about these numbers? You can ask about any line item, what the ratios mean, how the two companies compare, or what these businesses look like financially.
User: can you explain the gross margin % to me
AI: Great question — Gross Margin % is one of the most important numbers on an income statement!
Here’s the idea. When a company sells something, it first has to pay for the product itself — what it costs to buy or make the merchandise. Gross Margin is what’s left over after that.
Gross Margin % tells you: for every dollar of sales, how many cents are left after paying for the product?
The formula is:
Gross Margin % = (Gross Margin ÷ Net Revenue) × 100
Let’s run it for each company:
Walmart: $169,232,000 ÷ $680,985,000 × 100 = 24.9% → For every $1 Walmart brings in, it keeps about 25 cents after paying for the merchandise.
Target: $30,064,000 ÷ $106,566,000 × 100 = 28.2% → For every $1 Target brings in, it keeps about 28 cents after paying for the merchandise.
So Target actually holds on to a slightly larger slice of each sales dollar than Walmart does — even though Walmart is a much bigger company overall.
This makes sense when you think about it: Walmart is famous for rock-bottom prices, which means thinner margins on each product. Target tends to sell more private-label and style-forward merchandise, which can command slightly higher prices relative to cost.
Does that help clarify what Gross Margin % is measuring? Want to dig into why the two companies differ, or move on to another line item?