Walmart (WMT) has been getting hammered for the last few years, but CEO Doug McMillon says his company is back on track with an all-time high profit margin.
In the past year, Walmart’s profit margin has increased from 19.5% to 20.5%, and its profit margin for the quarter ended Sept. 30, 2015, was 11.3%.
“I think our fundamentals are really good,” McMillon said in a recent earnings call.
“We’re getting a lot of customer satisfaction out of our stores.”
The company has a strong return on equity of about 12% for the year, and has a low risk-adjusted rate of return, McMillon noted.
McMillon said the company expects to have to restructure its finances in the coming years, and is planning to focus on its retail operations, especially in the second half of the year.
He said Walmart plans to raise about $10 billion to $12 billion in a combination of private equity and debt.
Walmart has struggled to find a way to meet rising food prices in the U.S. and around the world.
In a move that could be seen as a direct response to the global food price spikes, the company announced in September it would be cutting prices on more than 3,000 products, including breakfast cereals, lunch boxes, and other breakfast items.
Walmart has not disclosed the full list of items affected.
McMillon also addressed other questions about the company’s future, including how it will continue to expand its workforce and how much profit will be made from its $3.3 billion buyout of Whole Foods.
Walmart had planned to hire about 4,000 workers during the holiday season, and the company has been trying to attract more employees.
Walton said Walmart is working on finding more ways to hire employees, including a “work from home” program.
“We’re working on ways to find ways to bring more of our employees in,” he said.
Walons profits have been rising steadily since 2013, when the company made a profit of $15.9 billion on a sales of $3 billion.
The company also had a profit margin of 9.4% for 2014.
McDonald’s (MCD) has a lot to be proud of.
But McMillon told investors in September that the company had seen an improvement in its results in the past few years.
“I believe we’re moving in the right direction,” McMillons company said at the time.
“This is our fourth consecutive year of revenue growth, with a 16% increase in the fourth quarter of 2015.”
McMillons stock has fallen nearly 13% since last year’s earnings call, and now trades for about $22.50.