Walmart Inc (WMT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.87 | 2.99 | 3.01 | 3.13 | 3.01 | 3.26 | 3.21 | 3.38 | 3.17 | 3.43 | 3.19 | 3.20 | 2.94 | 2.98 | 2.96 | 3.02 | 3.11 | 3.08 | 3.15 | 3.41 |
Walmart Inc has consistently maintained a strong solvency position, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios which have been consistently at 0.00 over the reported periods. This suggests that the company has minimal debt relative to its assets, capital, and equity, indicating a conservative financing strategy.
The financial leverage ratio, on the other hand, has shown some fluctuation over the periods, ranging from 2.87 to 3.43. Although there is variation, the ratios are relatively stable, indicating a reasonable level of financial leverage. A downward trend in the leverage ratio could signal decreasing financial risk, while an upward trend may indicate increased financial risk.
Overall, based on the solvency ratios analyzed, Walmart Inc appears to have a solid financial foundation with low dependency on debt for its operations and investments. Investors and stakeholders may view this positively as it demonstrates the company's ability to meet its financial obligations and withstand economic challenges.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage is a key financial ratio that measures a company's ability to cover its interest expenses with its operating income. For Walmart Inc, the interest coverage ratio has shown some fluctuations over the past few years.
As of January 31, 2025, Walmart's interest coverage ratio stands at 10.01, indicating that the company generated operating income 10.01 times greater than its interest expenses. This suggests that Walmart has a strong ability to meet its interest obligations comfortably.
Looking at the trend over the years, we observe some variability in Walmart's interest coverage ratio. The ratio has fluctuated between a low of 7.63 on October 31, 2022, indicating a slightly lower ability to cover interest expenses, and a high of 11.63 on July 31, 2022, indicating a stronger ability to cover interest costs.
Overall, although Walmart's interest coverage ratio has shown some fluctuations, it has generally remained at a healthy level, indicating that the company has sufficient operating income to cover its interest expenses. Investors and creditors may view this as a positive sign of Walmart's financial stability and ability to meet its debt obligations.