Walmart Inc. (NYSE:WMT)

The financial ratios display several notable trends over the six-year period under review. The total asset turnover ratios, both reported and adjusted, indicate a consistent improvement. Starting from about 2.2 in 2020, these ratios steadily increased each year, reaching approximately 2.59 by 2025. This upward trend suggests enhanced efficiency in using assets to generate sales.

Leverage ratios present a different pattern. The reported debt to equity ratio shows a gradual decline from 0.73 in 2020 to 0.5 in 2025, indicating reduced reliance on debt relative to equity over time. The adjusted debt to equity ratio follows a similar declining trend but starts higher and remains above the reported figures throughout, falling from 0.84 to 0.58. Correspondingly, the reported debt to capital ratio decreases from 0.42 to 0.33, while the adjusted ratio also decreases but stays marginally higher than the reported figures, ending near 0.37. This overall reduction in leverage ratios implies a conservative capital structure moving forward.

Financial leverage ratios exhibit slight fluctuations. Reported financial leverage decreased from 3.17 in 2020 to 2.87 in 2025 but experienced a peak at 3.17 in 2023. Adjusted financial leverage similarly trends downwards from 2.73 to 2.52, with a minor rise noted in 2023. The decline in financial leverage suggests a gradual reduction in the company's use of debt financing relative to equity.

Profitability ratios show mixed developments. The reported net profit margin declined from 2.86% in 2020 to a low of 1.93% in 2023, followed by a recovery to 2.88% in 2025. Adjusted net profit margins present more volatility, rising from 2.75% in 2020 to a peak of 2.94% in 2021, dropping sharply to 1.53% in 2023, and then recovering to 2.38% by 2025. These fluctuations may point to varying operational efficiencies or external market conditions impacting profitability across the years.

Return on equity (ROE) metrics reveal a downward trend initially, with reported ROE falling from 19.93% in 2020 to 15.23% in 2023 before rebounding to 21.36% in 2025. Adjusted ROE similarly declines from 16.69% to 10.32% by 2023 and recovers somewhat to 15.62% by 2025 but does not reach earlier highs. This pattern reflects challenges in maintaining equity profitability, particularly around 2023, with some improvement in subsequent years.

Return on assets (ROA) demonstrates a comparable trajectory. Reported ROA decreases from 6.29% in 2020 to 4.8% in 2023 before rising sharply to 7.45% in 2025. Adjusted ROA shows a peak at 6.51% in 2021, a steep decline to 3.83% in 2023, and a moderate recovery to 6.21% in 2025. This signifies a temporary weakening in asset efficiency, followed by a return to stronger asset utilization levels.

Summary of Key Trends:

- Asset turnover ratios improved steadily, indicating increased operational efficiency.

- Leverage ratios generally decreased, reflecting a more conservative financing structure.

- Financial leverage showed minor fluctuations but trended downward overall.

- Profit margins experienced volatility, with a notable dip around 2023 and recovery thereafter.

- Returns on equity and assets declined up to 2023, followed by a partial to robust recovery.

Overall, the data portray a company enhancing asset efficiency while cautiously reducing financial leverage. Profitability metrics suggest the company faced a challenging period around the 2023 fiscal year but has commenced recovery efforts evidenced by improved margins and returns in subsequent years.

The financial data reveals several notable trends across the reported periods.

Net Sales

Net sales demonstrate a consistent upward trajectory from 519,926 million USD in 2020 to 674,538 million USD in 2025. This steady increase signifies sustained business growth and expanding revenue streams over the six-year period.

Total Assets

Total assets exhibit minor fluctuations but generally show a moderate increase from 236,495 million USD in 2020 to 260,823 million USD in 2025. There is a slight dip observed in 2022 and 2023, with values of 244,860 million and 243,197 million USD respectively, before rising again towards the end of the period. This pattern suggests some asset reallocation or reduction followed by recovery and expansion.

Reported Total Asset Turnover

The reported total asset turnover ratio steadily improves from 2.2 in 2020 and 2021 to 2.59 in 2025. This indicates increasing efficiency in utilizing total assets to generate sales revenue, with progressive year-on-year enhancements.

Adjusted Total Assets

Adjusted total assets follow a trend similar to total assets, moving from 234,581 million USD in 2020 to 259,075 million USD in 2025. The adjustments do not significantly alter the overall asset base but reflect minor recalibrations consistent with the observed asset trends.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio also shows an upward trend, increasing from 2.22 in 2020 to 2.6 in 2025. These figures align closely with the reported ratios and reinforce the observation of growing operational efficiency in asset utilization throughout the period.

Overall, the data suggests that the company has managed to grow its sales revenue consistently while improving the efficiency with which it employs its asset base. Despite slight fluctuations in asset levels, operational effectiveness as measured by asset turnover has improved steadily, indicating effective asset management and potentially enhanced profitability prospects. The adjustments to asset values have minimal impact on the trends, affirming the robustness of the underlying performance metrics.

The financial data reveals several notable trends regarding the company's debt levels, shareholders' equity, and related leverage ratios over the six-year period ending January 31, 2025.

Total Debt

A downward trend in total debt is observed from 2020 through 2022, decreasing from US$54,469 million to US$42,831 million. This reduction suggests a deleveraging phase during these years. However, from 2022 onwards, total debt slightly increased to US$46,622 million in 2023 and US$46,891 million in 2024, before showing a minor decrease to US$45,790 million in 2025. Overall, debt levels display initial significant decline followed by stabilization and slight fluctuations.

Total Walmart Shareholders' Equity

Shareholders' equity consistently grew from US$74,669 million in 2020 to US$91,013 million in 2025, with a small setback in 2023 where equity dropped to US$76,693 million from a previous high of US$83,253 million in 2022. The recovery beyond this dip is evident, reaching the peak value in 2025. This trend implies strengthening equity base overall, though with a temporary decline in 2023.

Reported Debt to Equity Ratio

The reported debt to equity ratio shows a general decline from 0.73 in 2020 to 0.50 in 2025, despite a mild increase from 0.51 in 2022 to 0.58 in 2023. This pattern aligns with the observed debt and equity movements: debt reduction followed by moderate increases, and a relatively strong equity growth. Lower ratios over time indicate an improved leverage position, signaling reduced reliance on debt relative to equity.

Adjusted Total Debt

Adjusted total debt follows a similar but more pronounced pattern compared to total debt. It decreased from US$72,433 million in 2020 to US$57,323 million in 2022, then increased slightly through 2023 and 2024 to US$61,321 million, before modestly decreasing to US$60,114 million in 2025. The adjustment appears to capture additional liabilities or considerations, but the trend closely parallels that of reported total debt.

Adjusted Total Shareholders' Equity

Adjusted equity rose consistently from US$85,842 million in 2020 to US$97,335 million in 2022, declined in 2023 to US$89,757 million, then recovered to US$102,963 million by 2025. This pattern mirrors the trend in the reported equity figures but at a higher absolute level, suggesting adjustments include factors raising the equity base. The fluctuations in 2023 suggest an isolated event or valuation impact affecting equity temporarily.

Adjusted Debt to Equity Ratio

This ratio improved from 0.84 in 2020 to 0.58 in 2025. While there was a rise in leverage during 2023 to 0.66 from 0.59 in 2022, the general trend is toward a more conservative capital structure with lower adjusted leverage. The ratio remains above the reported debt to equity ratio, indicating adjustments incorporate elements that increase the apparent debt or reduce equity proportionally.

In summary, the financial data indicates an overall strengthening equity base accompanied by a reduction in leverage over the six years analyzed. Temporary fluctuations in 2023 suggest potential external or internal factors influencing both equity and debt levels. The adjusted figures consistently present higher absolute values but confirm the same trends as the reported data, reinforcing the conclusion of progressive deleveraging and improved financial stability.

The financial data indicates several notable trends in the company's debt and capital structure over the analyzed periods.

Total debt

The total debt shows a general declining trend from January 31, 2020, through January 31, 2022, decreasing from US$54,469 million to US$42,831 million. After this period, there is an increase in total debt reaching US$46,891 million by January 31, 2024, before slightly decreasing again to US$45,790 million by January 31, 2025. This suggests fluctuating borrowing levels, with a noticeable reduction in debt in the initial years followed by moderate increases.

Total capital

Total capital remains relatively stable over the years, with a slight decline from US$129,138 million in January 2020 to US$121,315 million in January 2023. This is followed by an upward trend, reaching US$136,803 million by January 2025. The trend reflects some variability in capital investment or equity availability, but overall an increase in the latter years.

Reported debt to capital ratio

The reported debt to capital ratio decreased from 0.42 in January 2020 to 0.34 in January 2022, indicating a strengthening of the capital base relative to debt. However, it increased slightly to 0.37 in January 2023, then showed a downward trend again reaching 0.33 in January 2025. These fluctuations suggest varying leverage levels but generally imply gradual deleveraging by the most recent period.

Adjusted total debt

Adjusted total debt follows a similar pattern to total debt, declining steadily from US$72,433 million in January 2020 to US$57,323 million in January 2022. It then rises moderately, reaching US$61,321 million in January 2024, before marginally falling to US$60,114 million in January 2025. This adjusted measure further confirms the initial debt reduction followed by stabilization and slight increases.

Adjusted total capital

Adjusted total capital slightly decreases from US$158,275 million in January 2020 to US$148,680 million in January 2023. Subsequently, it rises notably to US$163,077 million by January 2025. This growth in adjusted capital could reflect enhanced equity, retained earnings, or other capital augmentations in recent years.

Adjusted debt to capital ratio

The ratio declines from 0.46 in January 2020 to 0.37 in January 2022, indicating reduced leverage. It increases slightly to 0.40 in January 2023 but decreases again to 0.37 by January 2025, mirroring the pattern observed in the reported ratio. This implies moderate volatility in leverage but an overall trend toward a stronger capital structure.

In summary, the company has demonstrated a general trend of reducing both total and adjusted debt from 2020 through 2022, followed by stabilization with minor increases in subsequent years. Capital levels have shown resilience with a dip during 2021 to 2023 and a recovery afterward. The debt-to-capital ratios fluctuate but indicate a gradual move towards lower leverage by the latest period. This suggests prudent financial management with an emphasis on maintaining a balanced capital structure and controlled leverage.

Total Assets

Total assets demonstrated a generally stable pattern with minor fluctuations over the years. Beginning at $236,495 million in 2020, there was an increase to $252,496 million in 2021, followed by a slight decline in 2022 and 2023, reaching a low of $243,197 million. Subsequently, assets rose again in 2024 and 2025, reaching $260,823 million, indicating eventual growth over the six-year span.

Total Walmart Shareholders’ Equity

Shareholders’ equity showed an overall upward trend with some variation. It increased steadily from $74,669 million in 2020 to $83,253 million by 2022 but experienced a decline in 2023 to $76,693 million. Following this dip, equity rebounded in 2024 and 2025, reaching $91,013 million, reflecting a recovery and growth in equity value.

Reported Financial Leverage

The reported financial leverage ratio exhibited modest fluctuation around a slightly decreasing trend. Starting at 3.17 in 2020, it decreased to 3.12 in 2021 and further to 2.94 in 2022. However, leverage rose again to 3.17 in 2023 before declining over the next two years to 2.87 in 2025, indicating a gradual reduction in leverage after some volatility.

Adjusted Total Assets

Adjusted total assets mirrored the behavior of total assets with slight deviations. From $234,581 million in 2020, adjusted assets grew to $250,660 million in 2021, fell to a low of $241,694 million in 2023, and afterwards increased steadily to $259,075 million in 2025, suggesting an overall growth trend after a mid-period dip.

Adjusted Total Shareholders’ Equity

Adjusted equity consistently remained higher than reported equity figures and experienced a similar trend. It rose from $85,842 million in 2020 to $97,335 million in 2022, declined in 2023 to $89,757 million, and then increased again to $102,963 million by 2025. This reflects a positive long-term trajectory in adjusted equity despite a temporary downturn.

Adjusted Financial Leverage

The adjusted financial leverage ratio decreased over the analyzed period, starting at 2.73 in 2020 and declining to 2.52 in 2025. Despite a minor increase in 2023 (2.69), the overall trend points to reduced leverage when adjusted figures are used, indicating improved financial stability and less reliance on debt relative to equity.

The analysis of the financial performance over the reported periods reveals several noteworthy trends. Net sales demonstrated a consistent upward trajectory from the first period to the last, increasing steadily each year. This growth in sales signifies broad revenue expansion, suggesting an ability to enhance market penetration or sales volume.

Regarding profitability, the consolidated net income attributable to Walmart experienced fluctuations. After an initial decline from the first to the second period, net income somewhat stabilized before decreasing notably in the fourth period. Subsequently, there was a marked recovery with significant increases in the last two periods, reaching the highest value in the final period. This indicates periods of both financial pressure and recovery.

The reported net profit margin mirrored some of the variability in net income, starting with a decrease in the early periods, hitting its lowest point in the fourth period, before improving in the last two periods. The margins suggest pressure on profitability despite increasing revenues but demonstrate recovery toward the end of the timeline.

Adjusted consolidated net income follows a similar pattern but shows greater volatility. Initial growth is observed up to the second period, followed by a decline through the fourth period, with a recovery in the fifth period and a slight drop in the final period. This pattern reflects adjustments for certain items that may affect net income, indicating fluctuating operational or exceptional influences on earnings.

The adjusted net profit margin also declines distinctly in the fourth period, indicating a significant squeeze in profitability on an adjusted basis during that time. Although it recovers somewhat thereafter, it remains below the earlier peak levels, highlighting ongoing challenges to maintaining profit efficiency relative to sales.

Net Sales

Consistent growth observed across all periods, indicating expanding revenue base.

Consolidated Net Income

Fluctuating trend with an overall modest decline until the fourth period followed by strong recovery, signaling periods of both profitability pressure and improvement.

Reported Net Profit Margin

Decreasing trend initially, reaching a trough in the fourth period, then rebounding, reflecting varying profitability levels relative to sales.

Adjusted Consolidated Net Income

More pronounced volatility than reported net income, with decreases and partial recovery, suggesting operational and non-operational factors influencing profitability.

Adjusted Net Profit Margin

Notable decline and partial rebound, but margins do not fully regain earlier highs, pointing to ongoing margin challenges on an adjusted basis.

Net Income Trend

The consolidated net income attributable to Walmart shows fluctuations over the periods. Starting from a high of 14,881 million US dollars in 2020, it decreased to 13,510 million in 2021 and remained relatively stable in 2022. There was a notable decline to 11,680 million in 2023, followed by a significant recovery and increase to 15,511 million in 2024 and further rise to 19,436 million in 2025.

Shareholders’ Equity Trend

Total Walmart shareholders’ equity generally exhibited a positive growth trend throughout the periods analyzed. It increased from 74,669 million US dollars in 2020 to 83,253 million in 2022, then saw a slight decline in 2023 to 76,693 million. Subsequently, it climbed again to 83,861 million in 2024 and reached 91,013 million in 2025.

Reported Return on Equity (ROE)

The reported ROE started at 19.93% in 2020 and showed a decreasing trend through to 2023, declining to 15.23%. However, it rebounded significantly in 2024 to 18.5% and increased further to 21.36% in 2025, indicating improving profitability relative to shareholders’ equity in the recent periods.

Adjusted Consolidated Net Income

The adjusted consolidated net income demonstrated more pronounced variability. It increased from 14,323 million in 2020 to 16,317 million in 2021 but then gradually decreased to 15,721 million in 2022. A sharp drop occurred in 2023 to 9,262 million, followed by recovery and growth to 17,609 million in 2024. However, it decreased again to 16,079 million in 2025.

Adjusted Total Shareholders’ Equity

The adjusted total shareholders’ equity shows an overall increasing trend over the periods. It rose from 85,842 million in 2020 to 97,335 million in 2022, declined slightly in 2023 to 89,757 million, and then rose again to 96,156 million in 2024 and further to 102,963 million in 2025.

Adjusted Return on Equity (ROE)

The adjusted ROE displayed a decline from 16.69% in 2020 to 10.32% in 2023, reflecting a decrease in profitability when accounting for adjustments. Nevertheless, it improved significantly in 2024 to 18.31%, before decreasing again to 15.62% in 2025, indicating some recovery but with variability in returns relative to adjusted equity.

Summary

Overall, the company’s financial performance shows cyclical fluctuations, with earnings and returns on equity demonstrating periods of decline followed by recovery. The shareholders’ equity, both reported and adjusted, generally trends upwards, contributing positively to the capital base. The divergence between reported and adjusted figures highlights the impact of adjustments on profitability measures. Recent years show an improved return on equity, suggesting enhanced efficiency in generating profit from equity investments despite some short-term variability.

The financial data presents several key trends and insights regarding the company's performance over the six-year period ending January 31, 2025.

Consolidated Net Income Attributable

The net income exhibited fluctuations, starting at 14,881 million USD in 2020, declining to a low of 11,680 million USD in 2023, and notably rising thereafter to reach 19,436 million USD by 2025. This reflects a significant recovery and growth phase in the latter years following a dip in profitability.

Total Assets

Total assets showed a generally upward trend with some minor fluctuations, moving from 236,495 million USD in 2020 to 260,823 million USD in 2025. The asset base remained relatively stable between 2021 and 2023 before increasing steadily in the last two reported years, indicating potential asset accumulation or investments.

Reported Return on Assets (ROA)

The reported ROA percentage decreased from 6.29% in 2020 to a low of 4.8% in 2023, paralleling the dip in net income and stable asset base during this period. In 2024 and 2025, ROA recovered to 6.15% and 7.45% respectively, indicating enhanced efficiency in generating profit from assets concurrent with the net income increase.

Adjusted Consolidated Net Income

Adjusted net income shows volatility, with an increase from 14,323 million USD in 2020 to 16,317 million USD in 2021, followed by a slight decrease to 15,721 million USD in 2022. Thereafter, a marked decline to 9,262 million USD in 2023 occurred, before a rebound to 17,609 million USD in 2024, and a moderate decrease to 16,079 million USD in 2025. This pattern indicates variability in adjustments applied to net income, perhaps reflecting non-recurring items or operational adjustments.

Adjusted Total Assets

Adjusted total assets trend closely mirrors the reported total assets, with a gradual increase from 234,581 million USD in 2020 to 259,075 million USD in 2025. Variations are minimal, suggesting consistent methodology in adjustments over time.

Adjusted ROA

The adjusted ROA percentage shows more pronounced fluctuation than the reported ROA, rising from 6.11% in 2020 to a peak of 6.51% in 2021, then slightly decreasing to 6.46% in 2022. A sharp drop to 3.83% occurs in 2023, coinciding with the dip in adjusted net income. The ratio then recovers strongly to 7.02% in 2024 before declining again to 6.21% in 2025, indicating varying operational profitability after adjustments.

In summary, the company experienced a period of reduced profitability around 2023, as evidenced by dips in both net income and return on assets metrics. However, both reported and adjusted figures demonstrate a recovery beginning in 2024, with notable improvements in profitability despite a sustained growth in asset base. The fluctuations in adjusted figures suggest the presence of non-operational influences affecting net income and returns during the period analyzed.