Walmart Inc (WMT)

Cash conversion cycle

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Days of inventory on hand (DOH)	days	40.25	45.54	40.49	40.73	40.88	48.25	43.30	44.01	44.53	52.04	49.34	51.66	48.08	48.94	41.10	40.16	39.03	45.84	36.72	37.28
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	40.25	45.54	40.49	40.73	40.88	48.25	43.30	44.01	44.53	52.04	49.34	51.66	48.08	48.94	41.10	40.16	39.03	45.84	36.72	37.28

January 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 40.25 + — – —
= 40.25

The cash conversion cycle of Walmart Inc has shown some fluctuations over the past few years, ranging from a low of 36.72 days to a high of 52.04 days. The trend indicates that the company has been able to effectively manage its cash flow and working capital during this period. A lower cash conversion cycle is generally favorable as it suggests the company is efficiently converting its inventory into cash.

The average cash conversion cycle for Walmart Inc over this period is approximately 43 days, with the cycle reaching its peak in October 2022 and April 2022. This may indicate a temporary slowdown in the company's ability to convert its resources into cash during those periods. However, the company was able to improve its cash conversion cycle by January 2023, maintaining a downward trend until October 2024.

Overall, Walmart Inc's cash conversion cycle demonstrates the company's ability to efficiently manage its working capital and convert its inventory into cash within a reasonable timeframe.