Walmart Inc (WMT)
Solvency ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.14 | 0.14 | 0.14 | 0.16 | 0.18 |
| Debt-to-capital ratio | 0.30 | 0.31 | 0.30 | 0.34 | 0.37 |
| Debt-to-equity ratio | 0.43 | 0.45 | 0.42 | 0.51 | 0.59 |
| Financial leverage ratio | 3.01 | 3.17 | 2.94 | 3.12 | 3.17 |
Solvency ratios help assess a company's ability to meet its long-term financial obligations. Looking at Walmart Inc's solvency ratios over the past five years, we can observe the following trends:
1. Debt-to-assets ratio has remained relatively stable, indicating that Walmart has been effectively managing its debt in relation to its total assets, maintaining a healthy level of asset coverage.
2. Debt-to-capital ratio has shown a slight improvement from 0.37 in 2020 to 0.30 in 2022, suggesting that Walmart has reduced its reliance on debt financing in relation to the total capital structure.
3. Debt-to-equity ratio has demonstrated a decreasing trend, declining from 0.59 in 2020 to 0.43 in 2024. This indicates that Walmart has been reducing its level of debt in relation to shareholders' equity over the years.
4. Financial leverage ratio has fluctuated but generally remained around the 3.00 mark, implying that Walmart has been maintaining a stable level of financial leverage, indicating a consistent balance between debt and equity in its capital structure.
Overall, the solvency ratios for Walmart Inc suggest that the company has been effectively managing its debt levels and maintaining a healthy financial position over the past five years. The decreasing trends in debt-to-equity ratio and debt-to-capital ratio indicate a stronger financial position and lower reliance on debt financing, which is a positive sign for investors and stakeholders.
Coverage ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 10.45 | 10.00 | 13.61 | 9.92 | 8.01 |
The interest coverage ratio for Walmart Inc has been relatively stable over the past five years, indicating the company's consistent ability to meet its interest payment obligations. The ratio has ranged from 8.01 to 13.61, with the highest coverage observed in January 2022. This suggests that Walmart generates sufficient earnings to cover its interest expenses, providing a strong indication of financial stability and sound debt management. Overall, the consistent and relatively high interest coverage ratio reflects Walmart Inc's capacity to comfortably service its debt through its operating profits.