For those of y'all who hate Walmart, read these facts and savor them

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Over a typical 31-day period like the month of March for example, Walmart generates about $40.5 billion in sales revenue (roughly $1.3 billion per day). To generate that amount of sales, it costs Walmart about $39.3 billion every 31 days to pay for all of its expenses: merchandise to stock its stores, shipping expenses, the cost of labor including fringe benefits, utilities, corporate income taxes, property taxes, payroll taxes, interest expenses, advertising, etc. After incurring all of those costs to provide the merchandise for consumers over a 31-day period, there’s about $1.26 billion left over for profits, which is also 3.12% of the $40.5 billion in sales revenue.

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Think about Walmart’s 3.12% profit margin this way: For the first 30 days of every 31-day month, 100% of the sales revenue collected during that 30-day period (about $39 billion) go entirely towards paying Walmart’s monthly operating expenses: the costs of merchandise, labor, taxes, etc. In other words, it takes 30 days of sales during every 31-day period for Walmart to cover its costs and break even. Only on the last day of every 31 day period, after finally breaking even the previous day, does any of the sales revenue generated by Walmart go to its profits. Finally, on the 31st and final day of a month like March, the retailer’s daily sales of $1.3 billion become the company’s monthly profits (3.12% of sales for the month).

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In contrast, Apple’s whopping 24.2% profit margin means that the company can typically cover its costs to operate for 31 days in a little more than three weeks (23.5 days) and it then usually has 7.5 “profit days” every 31 days. That is, for more than an entire week every month, all of the sales revenue collected by Apple during those 7.5 days turns into profits for Apple’s shareholders.

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