Walmart Inc (WMT)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Inventory turnover | 9.07 | 8.93 | 8.20 | 7.59 | 9.35 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
Based on the provided data, let's analyze the activity ratios of Walmart Inc:
1. Inventory Turnover:
- Inventory turnover measures how many times a company's inventory is sold and replaced over a period.
- Walmart's inventory turnover has fluctuated over the years: from 9.35 in January 2021 to 9.07 in January 2025.
- A higher inventory turnover ratio indicates efficient inventory management. Walmart's ratios above 7 indicate a relatively good turnover rate, implying effective sales and inventory control.
2. Receivables Turnover:
- Receivables turnover ratio indicates how efficiently a company collects its outstanding receivables.
- The data provided shows that Walmart's receivables turnover ratios are not available for the years mentioned.
- The absence of data on receivables turnover makes it difficult to evaluate Walmart's efficiency in collecting receivables from customers.
3. Payables Turnover:
- Payables turnover ratio measures how quickly a company pays its suppliers.
- The data does not include information on Walmart's payables turnover for the specified years.
- Without payables turnover data, it is challenging to assess Walmart's payment practices and relationship with suppliers.
4. Working Capital Turnover:
- Working capital turnover ratio evaluates how effectively a company utilizes its working capital to generate sales.
- The data indicates that Walmart's working capital turnover ratios are not available for the given years.
- The absence of working capital turnover data hinders the assessment of how efficiently Walmart is utilizing its resources to generate revenue.
In summary, Walmart's inventory turnover ratios demonstrate relatively efficient management of inventory over the years. However, the lack of data for receivables turnover, payables turnover, and working capital turnover restricts a comprehensive analysis of Walmart's overall activity and cash conversion cycles. Additional information on these ratios would provide a more complete picture of Walmart's operational efficiency and financial performance.
Average number of days
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 40.25 | 40.88 | 44.53 | 48.08 | 39.03 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Walmart Inc, the days of inventory on hand (DOH) has shown a fluctuating trend over the past five years. The DOH was 39.03 days as of January 31, 2021, increased to 48.08 days by January 31, 2022, decreased to 44.53 days by January 31, 2023, and further dropped to 40.88 days by January 31, 2024, then slightly decreased to 40.25 days by January 31, 2025. The overall trend indicates that Walmart has managed its inventory efficiently, with a slight decrease in the latest period.
In contrast, the days of sales outstanding (DSO) and the number of days of payables for Walmart Inc are not available in the provided data. This lack of information limits the ability to assess the efficiency of the company in collecting receivables and managing payables over the same period.
In conclusion, the analysis of Walmart's activity ratios suggests effective management of inventory levels, as indicated by the fluctuating but overall maintained DOH over the past five years. However, a more comprehensive evaluation would require data on DSO and the number of days of payables to assess the company's overall efficiency in managing working capital effectively.
See also:
Long-term
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 5.13 | 5.09 | 5.09 |
| Total asset turnover | 2.61 | 2.57 | 2.51 | 2.34 | 2.21 |
Walmart Inc's long-term activity ratios provide insights into how the company effectively utilizes its assets to generate sales revenue. The fixed asset turnover ratio remained relatively stable from January 31, 2021, to January 31, 2023, showing a consistent ability to generate sales relative to its fixed asset base. The slight increase in this ratio from 5.09 in January 2023 to 5.13 in January 2024 suggests a slight improvement in the efficiency of utilizing fixed assets to drive sales.
The total asset turnover ratio, on the other hand, experienced a steady increase over the same period, indicating an improvement in the company's overall asset utilization efficiency. This ratio rose from 2.21 in January 31, 2021, to 2.61 in January 31, 2025, showcasing Walmart's ability to generate more sales revenue per dollar of total assets over time.
Overall, Walmart Inc's long-term activity ratios demonstrate a consistent and improving efficiency in utilizing both fixed assets and total assets to drive sales, which can be indicative of effective asset management strategies and operational performance.