Walmart Inc (WMT)

Interest coverage

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	25,909,000	25,483,000	23,632,000	27,061,000	23,572,000	25,830,000	23,386,000	19,140,000	19,144,000	14,841,000	21,480,000	20,795,000	21,849,000	16,571,000	18,435,000	21,301,000	22,879,000	29,273,000	26,623,000	22,873,000
Interest expense (ttm)	US$ in thousands	2,588,000	2,566,000	2,770,000	2,733,000	2,683,000	2,598,000	2,500,000	2,337,000	2,128,000	1,945,000	1,847,000	1,883,000	1,994,000	2,091,000	2,146,000	2,289,000	2,315,000	2,443,000	2,535,000	2,518,000
Interest coverage		10.01	9.93	8.53	9.90	8.79	9.94	9.35	8.19	9.00	7.63	11.63	11.04	10.96	7.92	8.59	9.31	9.88	11.98	10.50	9.08

January 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $25,909,000K ÷ $2,588,000K
= 10.01

The interest coverage ratio is a key financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expense. A higher interest coverage ratio signifies that a company is more capable of covering its interest payments.

Analyzing Walmart Inc's interest coverage ratios over the provided period from April 30, 2020, to January 31, 2025, reveals fluctuations in its ability to cover its interest expenses. The trend shows some volatility, with the ratio fluctuating between a low of 7.63 on October 31, 2022, and a high of 11.63 on July 31, 2022.

Notably, the interest coverage ratio generally remained above 8 throughout the period, indicating that Walmart had sufficient earnings to cover its interest payments. However, there were some dips below the 8 threshold, such as on January 31, 2023, and July 31, 2024, suggesting a slight weakening in the company's ability to service its debt.

Overall, the interest coverage ratios for Walmart Inc demonstrate a generally healthy financial position with the ability to meet its interest obligations, though periodic monitoring is advisable to ensure sustained financial stability and debt sustainability.