Walmart Inc (WMT)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	27,012,000	25,319,000	21,812,000	21,350,000	20,428,000	20,754,000	23,851,000	24,351,000	25,942,000	25,542,000	25,528,000	24,233,000	22,548,000	22,383,000	21,323,000	20,847,000	20,568,000	21,313,000	21,581,000	21,748,000
Interest expense (ttm)	US$ in thousands	2,585,000	2,513,000	2,415,000	2,252,000	2,043,000	1,857,000	1,759,000	1,795,000	1,906,000	2,050,000	2,105,000	2,248,000	2,274,000	2,666,000	2,750,000	2,725,000	2,806,000	2,600,000	2,568,000	2,489,000
Interest coverage		10.45	10.08	9.03	9.48	10.00	11.18	13.56	13.57	13.61	12.46	12.13	10.78	9.92	8.40	7.75	7.65	7.33	8.20	8.40	8.74

January 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $27,012,000K ÷ $2,585,000K
= 10.45

Interest coverage measures a company's ability to pay interest expenses on its outstanding debt. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses. A higher interest coverage ratio indicates that the company is more capable of meeting interest obligations.

Looking at the trend in Walmart Inc's interest coverage ratio over the past several quarters, we see some fluctuations. The interest coverage ratio has generally been above 8, which is considered a healthy level indicating the company's ability to comfortably cover its interest payments.

The trend shows that Walmart Inc's interest coverage ratio peaked at 13.61 in January 2022, indicating strong earnings relative to interest expenses. However, the ratio has since decreased but remained above 7, suggesting the company is still able to cover its interest obligations.

Overall, the interest coverage ratio for Walmart Inc indicates a generally stable and healthy financial position with the ability to comfortably meet its interest payment obligations. It is important for investors and creditors to monitor this ratio to ensure the company's ongoing ability to service its debt.