Walmart Inc (WMT)

Debt-to-capital ratio

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Long-term debt	US$ in thousands	36,132,000	34,649,000	34,864,000	41,194,000	43,714,000
Total stockholders’ equity	US$ in thousands	83,861,000	76,693,000	83,253,000	80,925,000	74,669,000
Debt-to-capital ratio		0.30	0.31	0.30	0.34	0.37

January 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $36,132,000K ÷ ($36,132,000K + $83,861,000K)
= 0.30

The debt-to-capital ratio of Walmart Inc has shown a declining trend over the past five years, decreasing from 0.37 in January 2020 to 0.30 in January 2024. This indicates that the company has been reducing its reliance on debt financing relative to its total capital structure.

A debt-to-capital ratio of 0.30 in January 2024 means that 30% of Walmart's capital structure is financed by debt, while the remaining 70% is financed by equity. This suggests that the company has a conservative approach to leveraging, as it is not heavily reliant on debt to fund its operations and investments.

The consistent decrease in the debt-to-capital ratio reflects Walmart Inc's efforts to manage its debt levels effectively and maintain a healthy balance between debt and equity financing. This may enhance the company's financial stability and reduce its risk exposure to fluctuations in interest rates and debt servicing requirements.