Walmart Inc (WMT)

Cash ratio

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Cash and cash equivalents	US$ in thousands	9,037,000	9,867,000	8,885,000	14,760,000	17,741,000
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	96,584,000	92,415,000	92,458,000	87,379,000	92,645,000
Cash ratio		0.09	0.11	0.10	0.17	0.19

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,037,000K + $—K) ÷ $96,584,000K
= 0.09

The cash ratio of Walmart Inc has exhibited a declining trend over the past five years, starting at 0.19 as of January 31, 2021, and decreasing to 0.09 as of January 31, 2025. This ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio is generally preferred, as it suggests that the company has a strong liquidity position. However, the decreasing trend in Walmart's cash ratio could imply that the company's cash and cash equivalents relative to its current liabilities have been decreasing over time. This may raise concerns about the company's ability to meet its short-term obligations solely through its available cash resources. It would be essential for Walmart to closely monitor and manage its liquidity position to ensure it can meet its financial obligations when they become due.