Walmart Inc (WMT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.14 | 0.14 | 0.14 | 0.16 | 0.14 | 0.14 | 0.12 | 0.13 | 0.14 | 0.15 | 0.17 | 0.17 | 0.16 | 0.16 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.20 |
| Debt-to-capital ratio | 0.30 | 0.31 | 0.32 | 0.34 | 0.31 | 0.32 | 0.28 | 0.29 | 0.30 | 0.31 | 0.33 | 0.34 | 0.34 | 0.33 | 0.35 | 0.39 | 0.37 | 0.39 | 0.39 | 0.41 |
| Debt-to-equity ratio | 0.43 | 0.46 | 0.46 | 0.53 | 0.45 | 0.47 | 0.38 | 0.42 | 0.42 | 0.44 | 0.49 | 0.51 | 0.51 | 0.50 | 0.54 | 0.63 | 0.59 | 0.63 | 0.63 | 0.70 |
| 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 |
Walmart Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable around 0.14 to 0.19 over the past few quarters, suggesting that the company maintains a low level of debt in relation to its total assets.
The debt-to-capital ratio shows a steady increase from 0.28 to 0.41, indicating that a higher proportion of the company's capital structure is financed by debt. This trend suggests a shift towards a more leveraged position, which may increase financial risk.
The debt-to-equity ratio has fluctuated between 0.38 to 0.70, reflecting varying levels of debt relative to equity. The increasing trend over time signals a higher reliance on debt financing compared to shareholders' equity, potentially indicating higher financial leverage.
The financial leverage ratio has also shown some fluctuations, ranging from 2.94 to 3.44. This metric indicates the extent to which the company is using debt to finance its operations, with higher values indicating a greater reliance on debt. Walmart's financial leverage has generally been on the higher side, implying increased financial risk and potential vulnerability to economic downturns.
Overall, while Walmart Inc's solvency ratios have remained within moderate levels, the increasing trend in debt-related ratios suggests a more leveraged financial position, which may require careful monitoring of the company's debt management strategies going forward.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Walmart Inc has shown a generally favorable trend over the last few quarters, indicating the company's ability to cover its interest expenses with its operating income.
From January 2020 to January 2022, the interest coverage ratio was consistently above 10, peaking at 13.61 in January 2022. This suggests that Walmart had significant earnings to cover its interest payments during this period.
There was a slight dip in the interest coverage ratio in April 2022, following a peak in the previous quarter. However, the ratio remained above 10, indicating a healthy margin of safety for covering interest expenses.
In the most recent quarters, the interest coverage ratio has been above 9, indicating that Walmart continues to have a strong ability to meet its interest obligations with earnings. The company's consistent performance in maintaining adequate interest coverage ratios reflects a stable financial position and efficient operations.