To calculate the operating income of a company, one takes the profit and deducts operating expenses. These expenses encompass costs of goods sold, employee salaries, and depreciation (or the way in which certain assets invariably lose some of their value over time). Now, the operating income has been tabulated.
As for total revenues, one has to calculate the amount of money a company has made from its sales and other applicable profit sources. It’s crucial to remember that total revenues does not account for the various expenses incurred by a company.
To find the operating income and total revenues for Walmart, identify the elements mentioned above. Walmart lays out these statistics in their 2019 Annual Report. Fortunately, there’s no overwhelming need to calculate them because Walmart calculates them themselves so that the reader of the report doesn’t have to.
In the “Item 6” section, Walmart provides specific data about its economic health. The data encompasses the fiscal years of 2015–2019. The first entry on their table is total revenues. Remember, most of the numbers are in the millions. When Walmart states its total revenues for 2019 as $514,405, that’s in the millions, which means it was over $514 billion. A little lower in the table, Walmart lists its operating income. The operating income for Walmart in 2019 was almost $22 billion.