Walmart Inc (WMT)
Solvency ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.87 | 3.01 | 3.17 | 2.94 | 3.11 |
As per the provided data, Walmart Inc's solvency ratios depict a favorable financial position in terms of debt obligations and leverage.
1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets financed by debt. Walmart Inc has consistently maintained a debt-to-assets ratio of 0.00 from January 31, 2021, to January 31, 2025. This implies that the company has not used debt to finance its assets during this period.
2. Debt-to-capital ratio: The debt-to-capital ratio reflects the percentage of a company's capital structure represented by debt. Similar to the debt-to-assets ratio, Walmart Inc also shows a debt-to-capital ratio of 0.00 across the five-year period. This suggests that the company has not relied on debt to fund its operations or investments relative to its capital.
3. Debt-to-equity ratio: The debt-to-equity ratio measures the extent to which a company is leveraged through debt relative to its equity. Walmart Inc maintained a debt-to-equity ratio of 0.00 throughout the five-year period, indicating the absence of long-term debt in its capital structure compared to equity.
4. Financial leverage ratio: The financial leverage ratio signifies the degree of a company's leverage and its ability to meet financial obligations. Walmart Inc's financial leverage ratio ranged from 2.87 to 3.17 over the period, showing a moderate level of financial leverage in financing its operations. The decrease in the ratio from 3.17 in 2023 to 2.87 in 2025 suggests a more conservative approach towards leveraging.
Overall, the data suggests that Walmart Inc has maintained a strong solvency position with minimal reliance on debt to support its operations and investments. The company's consistent low debt ratios indicate a robust financial strategy focused on maintaining a healthy balance sheet and minimizing financial risk.
Coverage ratios
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 10.64 | 10.07 | 9.00 | 13.01 | 9.88 |
The interest coverage ratio for Walmart Inc has shown fluctuations over the years. As of January 31, 2021, the interest coverage ratio was 9.88, indicating that Walmart's operating income was almost 10 times its interest expense for that year. Over the following years, the interest coverage ratio improved, reaching 13.01 by January 31, 2022, demonstrating a stronger ability to cover its interest payments.
However, in the subsequent years, the interest coverage ratio decreased slightly, reaching its lowest point at 9.00 on January 31, 2023. Despite this decline, Walmart still maintained a healthy coverage ratio, indicating that it had sufficient earnings to meet its interest obligations.
By January 31, 2024, the interest coverage ratio improved to 10.07, showing a recovery in Walmart's ability to cover its interest expenses. As of January 31, 2025, the interest coverage ratio further increased to 10.64, indicating a continued improvement in Walmart's financial health and ability to meet its interest payments comfortably. Overall, Walmart Inc has shown resilience and financial stability in managing its interest obligations over the years.