Multiline Retail Industry Key Financial Data 2023
The following analysis considers the 59 major publicly listed multiline retail companies with a market capitalisation above $1 billion. The numbers in the tables are expressed in millions of dollars except for percentages and ratios.
| Number | 59 |
| Expected Growth Rate | 11,47% |
| Financials 2023 | |
| Total Revenues | $ 1.236.573,00 |
| Operating Income | $ 90.072,00 |
| Free Cash Flows Firm | $ 62.961,36 |
| Effective Tax Rate | 22,90% |
| 10Y Median Operating Ratios | |
| Revenues Growth | 11,6% |
| Gross Margin | 34,4% |
| Operating Margin | 6,1% |
| Reinvestment Margin | 5,9% |
| ROIC | 15,4% |
| Sales to IC | 1,96 |
| Solvency Ratios | |
| Debt to EV | 18,6% |
| Debt to Equity | 73,2% |
| Interest Coverage | 7,31 |
| Rating | Aa2/AA |
| Spread | 0,85% |
| Beta | |
| Unlevered Beta 2 y | 0,49 |
| Unlevered Beta 5 y | 0,43 |
In 2023 the multiline retail industry generated $1’236.6 billion in revenues, an increase of 6.6% from the $1’160.1 billion of 2022.
Over the past 10 years, the median growth rate in revenues has been 11.6%.
| Year | Total Revenues |
| 2023 | 1.236.573 |
| 2022 | 1.160.144 |
| 2021 | 1.065.282 |
| 2020 | 891.670 |
| 2019 | 720.546 |
| 2018 | 623.225 |
| 2017 | 561.622 |
| 2016 | 469.799 |
| 2015 | 418.451 |
| 2014 | 395.431 |
| 2013 | 372.390 |
| 2012 | 354.913 |
Overall, the multiline retail industry registered an operating income of $90 billion in 2023. Regarding profitability, the 10-year median gross margin is 34.4%, while the 10-year median operating margin is equal to 6.1%.
| Year | Operating Income |
| 2023 | 90.072 |
| 2022 | 54.120 |
| 2021 | 54.112 |
| 2020 | 51.335 |
| 2019 | 40.807 |
| 2018 | 43.090 |
| 2017 | 33.398 |
| 2016 | 29.736 |
| 2015 | 26.927 |
| 2014 | 25.725 |
| 2013 | 25.692 |
| 2012 | 23.598 |
The total free cash flows to the firm for the multiline retail industry instead, were equal to $62.9 billion in 2023.
Moving on to efficiency ratios, the multiline retail industry’s 10-year median return on invested capital (ROIC) is 15.4%, while the 10-year median sales to invested capital is equal to 1.96.
The 10-year median reinvestment margin for the multiline retail industry – expressed as total reinvestments in net capital expenditures, acquisitions, and R&D divided by total revenues – is 5.9%.
Multiplying the reinvestment margin, which shows how much multiline retail companies have invested over the past years, by the sales to invested capital ratio, showing how efficiently multiline retail companies have invested, is it possible to calculate the expected growth rate in revenues for the multiline retail industry, equal to 11.47%.
Check out this post for a detailed explanation of how to calculate future revenue growth rates.
| Median Expected Growth Rate | ||
| 11,47% | ||
| Year | Reinvestment Margin | Sales To IC |
| 2023 | 5,79% | 1,23 |
| 2022 | 8,63% | 1,29 |
| 2021 | 9,00% | 1,61 |
| 2020 | 6,70% | 1,73 |
| 2019 | 6,15% | 1,94 |
| 2018 | 5,91% | 1,89 |
| 2017 | 8,52% | 2,16 |
| 2016 | 4,79% | 2,21 |
| 2015 | 5,65% | 1,97 |
| 2014 | 4,91% | 2,04 |
| 2013 | 3,88% | 2,01 |
As regards solvency ratios, the debt-to-enterprise value ratio for the multiline retail industry is 18.6%, while the debt-to-equity ratio is 73.2%.
The interest coverage ratio instead, showing how much the operating income covers interest expenses, is equal to 7.31, which would translate into a credit rating for the multiline retail industry equal to Aa2/AA based on Moody’s rating standards.
Finally, the unlevered beta of the multiline retail industry – which is the beta depurated by the debt leverage – has been 0.49, for the past 2 years, and 0.43, for the past 5 years.
However, the beta is only one of the required inputs to calculate the appropriate discount rate for company valuation, check out this page where you can find the equity risk premium for different markets needed to calculate the required cost of equity.