Walmart Inc (WMT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.82 | 0.85 | 0.80 | 0.80 | 0.83 | 0.85 | 0.83 | 0.82 | 0.82 | 0.86 | 0.84 | 0.86 | 0.93 | 0.95 | 0.96 | 0.95 | 0.97 | 0.84 | 0.79 | 0.77 |
| Quick ratio | 0.09 | 0.10 | 0.09 | 0.10 | 0.11 | 0.12 | 0.14 | 0.11 | 0.10 | 0.11 | 0.14 | 0.12 | 0.17 | 0.18 | 0.28 | 0.28 | 0.19 | 0.16 | 0.21 | 0.18 |
| Cash ratio | 0.09 | 0.10 | 0.09 | 0.10 | 0.11 | 0.12 | 0.14 | 0.11 | 0.10 | 0.11 | 0.14 | 0.12 | 0.17 | 0.18 | 0.28 | 0.28 | 0.19 | 0.16 | 0.21 | 0.18 |
Based on the provided data, Walmart Inc's liquidity ratios exhibit fluctuating trends over the past few years.
1. Current Ratio: The current ratio, which measures the company's ability to cover short-term obligations with current assets, has varied between 0.77 and 0.96 during the observed period. A current ratio above 1.0 is considered healthy, indicating that Walmart may have some challenges meeting its short-term obligations at certain points during the period.
2. Quick Ratio: The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has ranged from 0.09 to 0.28. This ratio shows Walmart's ability to meet short-term liabilities without relying on inventory sales. The lower values suggest potential challenges in meeting immediate obligations without considering inventory.
3. Cash Ratio: The cash ratio, which is the most conservative measure of liquidity focusing solely on cash and cash equivalents, has also shown fluctuations between 0.09 and 0.28. This ratio reveals Walmart's ability to cover short-term liabilities with the most liquid assets. The lower values indicate a limited capacity to settle short-term obligations with cash on hand.
Overall, the liquidity ratios of Walmart Inc have been volatile, indicating potential fluctuations in its ability to meet short-term obligations with its current asset base. It is essential for Walmart to closely monitor and manage its liquidity position to ensure financial stability and meet operational needs efficiently.
See also:
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle is a measure of how long it takes for a company to convert its investments in inventory into cash flows from sales. For Walmart Inc, the cash conversion cycle has shown some fluctuations over the past few years according to the provided data.
Initially, the cash conversion cycle decreased from 37.28 days as of April 30, 2020, to 36.72 days by July 31, 2020, indicating an improvement in managing inventory, receivables, and payables. However, the cycle increased to 45.84 days as of October 31, 2020. This increase suggests that the company may have been taking longer to convert inventory into cash.
Subsequently, the cycle fluctuated around the 40-day mark over the next few quarters, indicating some stability in managing the cash conversion process. However, there was a noticeable increase in the cash conversion cycle to 48.94 days as of October 31, 2021, and remained elevated around 50 days until July 31, 2022.
From July 31, 2022, to January 31, 2025, the cash conversion cycle showed a downward trend, indicating that Walmart Inc was able to streamline its operations and improve its efficiency in converting inventory into cash. The cycle decreased from 49.34 days as of July 31, 2022, to 40.25 days as of January 31, 2025, showcasing a more efficient cash conversion process.
Overall, analyzing the cash conversion cycle data for Walmart Inc highlights its ability to manage inventory, receivables, and payables effectively over the specified period, with fluctuations at times but ultimately showing an improving trend towards a faster cash conversion process.