Walmart Inc (WMT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 252,399,000 | 259,174,000 | 255,121,000 | 245,053,000 | 243,197,000 | 247,656,000 | 247,199,000 | 246,142,000 | 244,860,000 | 244,851,000 | 238,552,000 | 236,581,000 | 252,496,000 | 250,863,000 | 237,382,000 | 232,892,000 | 236,495,000 | 239,830,000 | 234,861,000 | 234,544,000 |
| 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 |
| Financial leverage ratio | 3.01 | 3.26 | 3.21 | 3.38 | 3.17 | 3.43 | 3.19 | 3.20 | 2.94 | 2.98 | 2.96 | 3.02 | 3.12 | 3.08 | 3.15 | 3.41 | 3.17 | 3.35 | 3.34 | 3.44 |
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 shown fluctuations over the past several quarters, ranging from a low of 2.94 to a high of 3.43. The ratio measures the proportion of the company's debt to its equity, indicating the level of financial risk and reliance on debt financing.
The trend indicates that Walmart Inc has been gradually increasing its leverage from early 2020 to mid-2023. A higher leverage ratio suggests that the company is using more debt to finance its operations, which can magnify returns but also increase financial risk.
The recent decrease in the financial leverage ratio from 3.43 in October 2023 to 3.01 in January 2024 may indicate a reduction in debt levels relative to equity. This could be a strategic move by Walmart Inc to lower its financial risk or a shift in capital structure priorities.
Overall, close monitoring of Walmart Inc's financial leverage ratio is crucial for assessing its capital structure, risk profile, and financial performance. It is essential to understand the reasons behind the fluctuations and analyze the implications for the company's future financial health and stability.
Peer comparison
Jan 31, 2024