Walmart Inc. (NYSE:WMT)

Current Ratio

The current ratio demonstrated relative stability over the analyzed periods with values generally ranging between 0.76 and 0.97. Initially, the ratio was relatively low around 0.77 and decreased slightly to 0.76 in July 2019 before experiencing a moderate increase to a peak of 0.97 in January 2021. This peak was followed by a gradual decline and fluctuations, with the ratio mostly moving between 0.80 and 0.86 from mid-2021 through to the latter periods leading up to April 2025. This trend implies a consistent but somewhat tight liquidity position, suggesting the company maintained sufficient current assets to cover current liabilities, though not with a wide margin.

Quick Ratio

The quick ratio followed a generally upward trend from April 2019, starting at 0.18, and increasing moderately to reach 0.36 by July 2021. This indicates an improvement in the company's immediate liquidity position and ability to meet short-term obligations without relying on inventory sales. However, after this peak, the quick ratio exhibited a declining trend, stabilizing between 0.18 and 0.22 through to April 2025. This reduction suggests a relative decrease in highly liquid assets or a proportionate increase in current liabilities, though the ratio remained above the initial levels from 2019, indicating some overall improvement in liquidity compared to earlier periods.

Cash Ratio

The cash ratio showed more pronounced fluctuation compared to the other liquidity ratios. Starting at approximately 0.12 in April 2019, this ratio experienced a rise to 0.28 in April and July 2021, reflecting stronger cash and cash equivalents relative to current liabilities during this time. Subsequent periods revealed a steady decline in the cash ratio, dropping back down to roughly 0.09-0.14 by January 2025. This pattern indicates a reduction in the most liquid assets relative to current liabilities after mid-2021, suggesting a strategic shift or external conditions impacting cash holdings.

Current Assets

The current assets show a fluctuating pattern over the presented periods, with a notable increase starting from January 2020 through January 2021 where it peaked near 90 billion US dollars. After this peak, the amounts tend to decline and stabilize around the mid-70 billion to mid-80 billion range, displaying some volatility but no clear long-term upward or downward trend beyond this timeframe.

Current Liabilities

Current liabilities exhibit a general upward trend over the analyzed periods. The values start near 80 billion and gradually increase to over 100 billion by late 2024 and early 2025. There are periodic fluctuations, but an overall increase in current liabilities is clearly visible, suggesting increased short-term obligations over time.

Current Ratio

The current ratio begins below 1.00, ranging around 0.76 to 0.79 until early 2020. It then rises significantly, nearing 0.97 by January 2021, indicating an improvement in short-term liquidity. However, after this peak, the current ratio decreases again, hovering between approximately 0.78 and 0.85 in the later periods. This indicates that although liquidity improved temporarily, it did not maintain at higher levels and settled back to below 1.0, signifying that current liabilities consistently exceed current assets.

Summary of Trends

Overall, the data suggest that while there was a temporary improvement in liquidity around early 2021, current liabilities have generally increased faster than current assets over the longer term. This has resulted in a current ratio that remains below 1.0, indicating potential pressure on short-term financial flexibility. The fluctuations in current assets and liabilities imply a dynamic working capital management environment, possibly affected by external factors or business cycle shifts. The stabilization of both assets and liabilities in the later periods suggests a return to a more steady operational state, though with ongoing challenges in achieving a current ratio above 1.0.

Total Quick Assets

The total quick assets exhibit a fluctuating trend over the observed periods. Starting from approximately $14,597 million in April 2019, there is a gradual increase reaching a peak around January 2021 with values surpassing $28,000 million. Following this peak, a general decline is observed, with some short-term recoveries, bringing the figure down to approximately $19,949 million by July 2025. This pattern suggests periods of liquidity build-up followed by drawdowns, reflecting dynamic management of liquid assets.

Current Liabilities

Current liabilities show a consistently high and somewhat increasing trend over the period. Beginning near $79,888 million in April 2019, liabilities fluctuate moderately but exhibit an upward tendency overall, reaching beyond $103,000 million by mid-2025. Peaks and troughs occur but the general movement is indicative of rising short-term obligations, which could reflect growth in operations or changes in financing strategy that increase current liabilities.

Quick Ratio

The quick ratio, a measure of liquidity, remains relatively low throughout the periods, fluctuating mainly between 0.17 and 0.36. It exhibits a notable increase from 0.18 in early 2019 to a temporary high of 0.36 around July 2021, coinciding with the peak in quick assets. Post-2021, the ratio declines again and stabilizes closer to values around 0.18 to 0.22. Such levels indicate modest liquidity relative to current liabilities, suggesting that the company's ability to cover immediate obligations with quick assets is limited but stable, without significant risk indicated by sharp declines.

Overall Insight

The data reveals a pattern where liquid assets were significantly increased in the period leading to early 2021, enhancing short-term liquidity as reflected in the quick ratio spike. However, after this period, both quick assets and the quick ratio declined while current liabilities continued to rise, leading to a reduced liquidity cushion. The persistent low quick ratio throughout the periods points to a lean liquidity position relative to liabilities, requiring ongoing monitoring. The fluctuations indicate a strategic approach to managing working capital and liquidity, but the overall trend underscores the importance of maintaining sufficient quick assets to cover short-term liabilities efficiently.

The analysis of the quarterly financial data reveals several notable trends in the company's liquidity and short-term obligations over the observed periods.

Total Cash Assets

Total cash assets exhibit significant variability throughout the periods. Starting at approximately $9.3 billion in early 2019, cash assets generally increased, peaking near $22.8 billion in mid-2021. This was followed by a notable decline reaching a low around $8.6 billion in early 2023. Subsequent quarters show modest recovery followed by fluctuations around $9 to $10 billion, indicating a more stabilized but lower cash asset position compared to the earlier peak.

Current Liabilities

Current liabilities demonstrate a fluctuating upward trend. Beginning at about $79.9 billion in early 2019, they increased notably around early 2021 to peaks exceeding $100 billion. Despite some quarters with slight declines, the overall trend points to elevated short-term liabilities in recent years, reaching over $103 billion by mid-2025. This consistent rise in current liabilities suggests an increase in the company's financial obligations due within one year.

Cash Ratio

The cash ratio shows a pattern closely related to the fluctuations in cash assets and current liabilities. Initially low, around 0.10 to 0.12 in early periods, the ratio increased markedly between 2019 and mid-2021, reaching a high of approximately 0.28. This indicates stronger liquidity relative to current liabilities during that timeframe. After this peak, the cash ratio steadily declined to about 0.09 by the latest periods, reflecting reduced cash coverage against short-term liabilities. This downward trend may highlight increased liquidity risk or a strategic change in cash management.

In summary, while cash assets showed strong growth and peaks around mid-2021, they declined sharply thereafter, contrasting with consistently rising current liabilities. This combination has led to a reduction in the cash ratio over the latest quarters, signaling a weakening in the company's immediate liquidity position relative to its short-term liabilities.