Walmart Inc (WMT)

Interest coverage

		Jan 31, 2025	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	29,037,000	27,012,000	19,144,000	25,942,000	22,879,000
Interest expense	US$ in thousands	2,728,000	2,683,000	2,128,000	1,994,000	2,315,000
Interest coverage		10.64	10.07	9.00	13.01	9.88

January 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $29,037,000K ÷ $2,728,000K
= 10.64

Interest coverage ratio measures a company's ability to cover its interest expenses with its operating income. Over the past five years, Walmart Inc's interest coverage ratio has shown a fluctuating trend. In January 31, 2021, the interest coverage ratio was 9.88, indicating that Walmart's operating income was almost 10 times higher than its interest expenses. Subsequently, in January 31, 2022, the ratio improved to 13.01, demonstrating a strengthened ability to cover interest payments comfortably. However, in January 31, 2023, the interest coverage ratio decreased to 9.00, potentially suggesting a slight vulnerability in meeting interest obligations. In the following years, the ratio slightly recovered, with values of 10.07 in January 31, 2024, and 10.64 in January 31, 2025. Overall, the fluctuating trend in Walmart's interest coverage ratio indicates varying levels of ability to service its interest expenses over the analyzed period.