Determining the net worth of any company is not difficult, and Walmart’s net worth is no different. Named in 1990 as the top retailer in America, many are curious to know the net worth of Walmart. And whether investing in Walmart stock is a good idea.
In short, the company’s net worth currently stands at $405,58 billion. But this value varies slightly from day to day. And to understand why net worth isn’t constant, one needs to examine how a business’s net worth is calculated. Once you’re familiar with how to calculate net worth, you’ll be able to work out one’s net worth at any point.
The net worth of any company provides you with insight into how financially stable the business is. And this gives potential investors a good indication of whether it’s worth investing in the company.
The Growth of Walmart
Few in this world have never heard of Walmart. In fact, this iconic retailer now operates nearly 11,500 stores in 24 countries across the globe. This makes Walmart the biggest company in the world in terms of revenue.
But it began with one discount store opened by founder Sam Walton in 1962. As a result of its popularity, Walton’s grew to 18 stores across Arkansas within its first 5 years. And the strength of this retail giant remains as the company continues to see an increase in revenue each year.
Calculating Walmart’s Net Worth
Determining the business net worth is not complicated if you have the correct information. In fact, the calculation is relatively straightforward. And it can easily be applied to any company for which you wish to know the net worth.
Typically, one would calculate a company’s net worth by subtracting its liabilities from its assets. However, as Walmart is a publicly-traded company, investors will use the book value to indicate the company’s net worth.
The company’s book value is the total net value of its shares based on the current stock price. And, because the stock price varies regularly, so does the company’s net worth.
Note that many confuse book value with market cap. However, the market cap indicates the current total market value of a company’s shares and does not factor in its liabilities. On the other hand, book value is the total value that shareholders would receive if the company was liquidated.
Although net worth is variable, it’s clear that the business’ net worth is sizeable and will likely remain so in the future. And with its current standing at $405,58 billion, it’s safe to say that this is a stable company in excellent financial health.