Wesfarmers Ltd
ASX:WES

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Wesfarmers Ltd
ASX:WES
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Price: 70.82 AUD 0.14%
Market Cap: 80.3B AUD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Wesfarmers Ltd

Revenue
44.2B AUD
Cost of Revenue
-28.8B AUD
Gross Profit
15.4B AUD
Operating Expenses
-11.4B AUD
Operating Income
4B AUD
Other Expenses
-1.4B AUD
Net Income
2.6B AUD

Margins Comparison
Wesfarmers Ltd Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
AU
Wesfarmers Ltd
ASX:WES
80.5B AUD
35%
9%
6%
US
Target Corp
NYSE:TGT
61.8B USD
28%
6%
4%
CA
Dollarama Inc
TSX:DOL
37.7B CAD
45%
26%
18%
JP
Pan Pacific International Holdings Corp
TSE:7532
2.4T JPY
32%
7%
4%
US
Dollar General Corp
NYSE:DG
15.1B USD
30%
5%
3%
US
Dollar Tree Inc
NASDAQ:DLTR
15.1B USD
31%
-3%
-3%
CN
MINISO Group Holding Ltd
HKEX:9896
54.2B HKD
44%
19%
15%
CA
Canadian Tire Corporation Ltd
TSX:CTC.A
9B CAD
35%
8%
4%
JP
Ryohin Keikaku Co Ltd
TSE:7453
973.1B JPY
51%
8%
6%
US
Ollie's Bargain Outlet Holdings Inc
NASDAQ:OLLI
5.9B USD
40%
12%
9%
LU
B&M European Value Retail SA
LSE:BME
3.2B GBP
37%
11%
7%
No Stocks Found

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Wesfarmers Ltd Competitors

Country Company Market Cap ROE ROA ROCE ROIC
AU
Wesfarmers Ltd
ASX:WES
80.5B AUD
30%
10%
21%
14%
US
Target Corp
NYSE:TGT
61.8B USD
32%
8%
17%
11%
CA
Dollarama Inc
TSX:DOL
37.7B CAD
139%
18%
32%
23%
JP
Pan Pacific International Holdings Corp
TSE:7532
2.4T JPY
16%
6%
15%
9%
US
Dollar General Corp
NYSE:DG
15.1B USD
20%
4%
8%
6%
US
Dollar Tree Inc
NASDAQ:DLTR
15.1B USD
-13%
-5%
-5%
-5%
CN
MINISO Group Holding Ltd
HKEX:9896
54.2B HKD
27%
17%
30%
41%
CA
Canadian Tire Corporation Ltd
TSX:CTC.A
9B CAD
12%
3%
9%
5%
JP
Ryohin Keikaku Co Ltd
TSE:7453
973.1B JPY
15%
9%
16%
12%
US
Ollie's Bargain Outlet Holdings Inc
NASDAQ:OLLI
5.9B USD
14%
9%
13%
10%
LU
B&M European Value Retail SA
LSE:BME
3.2B GBP
50%
10%
22%
16%
No Stocks Found

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.