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.
Peer comparison
Jan 31, 2024