Walmart Inc (WMT)

Debt-to-equity ratio

		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	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Long-term debt	US$ in thousands	36,132,000	36,342,000	36,806,000	38,120,000	34,649,000	33,935,000	29,801,000	32,174,000	34,864,000	36,425,000	39,581,000	40,273,000	41,194,000	40,849,000	40,959,000	43,006,000	43,714,000	44,912,000	44,404,000	47,425,000
Total stockholders’ equity	US$ in thousands	83,861,000	79,456,000	79,556,000	72,405,000	76,693,000	72,253,000	77,569,000	76,896,000	83,253,000	82,274,000	80,529,000	78,335,000	80,925,000	81,431,000	75,310,000	68,240,000	74,669,000	71,649,000	70,327,000	68,205,000
Debt-to-equity ratio		0.43	0.46	0.46	0.53	0.45	0.47	0.38	0.42	0.42	0.44	0.49	0.51	0.51	0.50	0.54	0.63	0.59	0.63	0.63	0.70

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 of Walmart Inc has fluctuated over the periods presented. As of Jan 31, 2024, the ratio stands at 0.43, indicating that the company has a lower level of debt in relation to its equity. This suggests that Walmart relies more on equity financing rather than debt to fund its operations and growth.

Looking back at the historical trend, we observe variability in the debt-to-equity ratio, with values ranging from 0.38 to 0.70 over the last 20 reporting periods. The ratio peaked at 0.70 on Jul 31, 2019, indicating a higher reliance on debt financing at that point in time.

Overall, a lower debt-to-equity ratio is generally viewed as favorable, as it suggests a lower financial risk and a stronger financial position for the company. It signals that Walmart's capital structure has been relatively stable, with a tendency towards maintaining a conservative approach to leveraging its operations. However, it is important to consider other financial indicators and factors in conjunction with the debt-to-equity ratio to gain a comprehensive understanding of Walmart's financial health and risk profile.