Walmart Inc (WMT)

Debt-to-equity 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-equity ratio		0.43	0.45	0.42	0.51	0.59

January 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $36,132,000K ÷ $83,861,000K
= 0.43

The debt-to-equity ratio measures a company's financial leverage by comparing its total debt to its shareholders' equity. A lower ratio indicates that a company is more reliant on equity financing rather than debt, which can be viewed positively by investors as it signifies lower financial risk.

Analyzing Walmart Inc's debt-to-equity ratio over the past five years, we observe a generally decreasing trend from 0.59 in January 2020 to 0.43 in January 2024, indicating a reduction in dependency on debt financing relative to equity. This could suggest improved financial stability and a stronger financial position for the company.

Furthermore, the decreasing trend in Walmart's debt-to-equity ratio may indicate effective management of debt levels and a strategic focus on optimizing its capital structure. By lowering its reliance on debt, Walmart may have enhanced its ability to weather economic downturns and reduced the risk of insolvency.

Overall, the decreasing trend in Walmart Inc's debt-to-equity ratio from 2020 to 2024 reflects a positive shift towards a more balanced capital structure with a decreased reliance on debt financing, potentially improving the company's long-term financial health and resilience.