Walmart Inc (WMT)
Financial leverage ratio
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 252,399,000 | 243,197,000 | 244,860,000 | 252,496,000 | 236,495,000 |
| Total stockholders’ equity | US$ in thousands | 83,861,000 | 76,693,000 | 83,253,000 | 80,925,000 | 74,669,000 |
| Financial leverage ratio | 3.01 | 3.17 | 2.94 | 3.12 | 3.17 |
January 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $252,399,000K ÷ $83,861,000K
= 3.01
The financial leverage ratio of Walmart Inc has fluctuated over the past five years. The ratio decreased from 3.17 in January 2020 to 2.94 in January 2022, indicating a reduction in the company's reliance on debt to finance its operations. However, the ratio increased to 3.17 in January 2023, returned to its level in 2020, and then slightly decreased to 3.01 in January 2024.
A financial leverage ratio of greater than 1 implies that the company is using more debt than equity to finance its assets. A higher ratio indicates higher financial risk due to increased debt obligations. Conversely, a lower ratio suggests a more conservative capital structure with less reliance on debt financing.
Overall, Walmart Inc's financial leverage ratio has shown variability in recent years, suggesting shifts in the company's capital structure and debt management strategies. Further analysis of the underlying reasons for these fluctuations would be beneficial to assess the company's risk profile and financial health.
Peer comparison
Jan 31, 2024