Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.
Solvency Ratios (Summary)
Walmart Inc., solvency ratios
Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Walmart Inc.’s debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Walmart Inc.’s debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Walmart Inc.’s debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Walmart Inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Walmart Inc.’s debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Walmart Inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Walmart Inc.’s financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Walmart Inc.’s interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Walmart Inc.’s fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity
Walmart Inc., debt to equity calculation, comparison to benchmarks
| Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term borrowings | 224 | 575 | 5,225 | 5,257 | 1,099 | 2,708 | |
| Long-term debt due within one year | 3,115 | 5,362 | 1,876 | 3,738 | 2,256 | 2,745 | |
| Finance lease obligations due within one year | 491 | 511 | — | — | — | — | |
| Capital lease and financing obligations due within one year | — | — | 729 | 667 | 565 | 551 | |
| Long-term debt, excluding due within one year | 41,194 | 43,714 | 43,520 | 30,045 | 36,015 | 38,214 | |
| Long-term finance lease obligations, excluding due within one year | 3,847 | 4,307 | — | — | — | — | |
| Long-term capital lease and financing obligations, excluding due within one year | — | — | 6,683 | 6,780 | 6,003 | 5,816 | |
| Total debt | 48,871 | 54,469 | 58,033 | 46,487 | 45,938 | 50,034 | |
| Total Walmart shareholders’ equity | 80,925 | 74,669 | 72,496 | 77,869 | 77,798 | 80,546 | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.60 | 0.73 | 0.80 | 0.60 | 0.59 | 0.62 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.66 | 0.83 | 0.97 | 1.41 | 0.92 | |
| Costco Wholesale Corp. | — | 0.42 | 0.45 | 0.51 | 0.62 | 0.43 | |
| Dollar General Corp. | 0.62 | 0.43 | 0.45 | 0.49 | 0.59 | 0.55 | |
| Home Depot Inc. | 11.29 | — | — | 18.59 | 5.45 | 3.37 | |
| Lowe’s Cos. Inc. | 15.16 | 9.79 | 4.45 | 2.89 | 2.44 | 1.65 | |
| Target Corp. | 0.88 | 0.97 | 1.00 | 0.99 | 1.16 | 0.98 | |
| TJX Cos. Inc. | 1.04 | 0.38 | 0.44 | 0.43 | 0.49 | 0.38 | |
| Debt to Equity, Sector | |||||||
| General Retailers | — | 0.91 | 1.02 | 0.95 | 1.01 | 0.84 | |
| Debt to Equity, Industry | |||||||
| Consumer Services | — | 1.22 | 1.24 | 1.27 | 1.10 | 0.99 | |
Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).
1 2021 Calculation
Debt to equity = Total debt ÷ Total Walmart shareholders’ equity
= 48,871 ÷ 80,925 = 0.60
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Walmart Inc.’s debt to equity ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Equity (including Operating Lease Liability)
Walmart Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term borrowings | 224 | 575 | 5,225 | 5,257 | 1,099 | 2,708 | |
| Long-term debt due within one year | 3,115 | 5,362 | 1,876 | 3,738 | 2,256 | 2,745 | |
| Finance lease obligations due within one year | 491 | 511 | — | — | — | — | |
| Capital lease and financing obligations due within one year | — | — | 729 | 667 | 565 | 551 | |
| Long-term debt, excluding due within one year | 41,194 | 43,714 | 43,520 | 30,045 | 36,015 | 38,214 | |
| Long-term finance lease obligations, excluding due within one year | 3,847 | 4,307 | — | — | — | — | |
| Long-term capital lease and financing obligations, excluding due within one year | — | — | 6,683 | 6,780 | 6,003 | 5,816 | |
| Total debt | 48,871 | 54,469 | 58,033 | 46,487 | 45,938 | 50,034 | |
| Operating lease obligations due within one year | 1,466 | 1,793 | — | — | — | — | |
| Long-term operating lease obligations, excluding due within one year | 12,909 | 16,171 | — | — | — | — | |
| Total debt (including operating lease liability) | 63,246 | 72,433 | 58,033 | 46,487 | 45,938 | 50,034 | |
| Total Walmart shareholders’ equity | 80,925 | 74,669 | 72,496 | 77,869 | 77,798 | 80,546 | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.78 | 0.97 | 0.80 | 0.60 | 0.59 | 0.62 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | — | 1.08 | 1.25 | 0.97 | 1.41 | 0.92 | |
| Costco Wholesale Corp. | — | 0.57 | 0.45 | 0.51 | 0.62 | 0.43 | |
| Dollar General Corp. | 2.04 | 1.75 | 0.45 | 0.49 | 0.59 | 0.55 | |
| Home Depot Inc. | 13.16 | — | — | 18.59 | 5.45 | 3.37 | |
| Lowe’s Cos. Inc. | 18.24 | 12.04 | 4.45 | 2.89 | 2.44 | 1.65 | |
| Target Corp. | 1.05 | 1.18 | 1.19 | 0.99 | 1.16 | 0.98 | |
| TJX Cos. Inc. | 2.66 | 1.93 | 0.44 | 0.43 | 0.49 | 0.38 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| General Retailers | — | 1.34 | 1.18 | 0.95 | 1.01 | 0.84 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Services | — | 1.53 | 1.39 | 1.27 | 1.10 | 0.99 | |
Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).
1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Walmart shareholders’ equity
= 63,246 ÷ 80,925 = 0.78
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Walmart Inc.’s debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Capital
Walmart Inc., debt to capital calculation, comparison to benchmarks
| Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term borrowings | 224 | 575 | 5,225 | 5,257 | 1,099 | 2,708 | |
| Long-term debt due within one year | 3,115 | 5,362 | 1,876 | 3,738 | 2,256 | 2,745 | |
| Finance lease obligations due within one year | 491 | 511 | — | — | — | — | |
| Capital lease and financing obligations due within one year | — | — | 729 | 667 | 565 | 551 | |
| Long-term debt, excluding due within one year | 41,194 | 43,714 | 43,520 | 30,045 | 36,015 | 38,214 | |
| Long-term finance lease obligations, excluding due within one year | 3,847 | 4,307 | — | — | — | — | |
| Long-term capital lease and financing obligations, excluding due within one year | — | — | 6,683 | 6,780 | 6,003 | 5,816 | |
| Total debt | 48,871 | 54,469 | 58,033 | 46,487 | 45,938 | 50,034 | |
| Total Walmart shareholders’ equity | 80,925 | 74,669 | 72,496 | 77,869 | 77,798 | 80,546 | |
| Total capital | 129,796 | 129,138 | 130,529 | 124,356 | 123,736 | 130,580 | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.38 | 0.42 | 0.44 | 0.37 | 0.37 | 0.38 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.40 | 0.45 | 0.49 | 0.59 | 0.48 | |
| Costco Wholesale Corp. | — | 0.29 | 0.31 | 0.34 | 0.38 | 0.30 | |
| Dollar General Corp. | 0.38 | 0.30 | 0.31 | 0.33 | 0.37 | 0.36 | |
| Home Depot Inc. | 0.92 | 1.11 | 1.07 | 0.95 | 0.84 | 0.77 | |
| Lowe’s Cos. Inc. | 0.94 | 0.91 | 0.82 | 0.74 | 0.71 | 0.62 | |
| Target Corp. | 0.47 | 0.49 | 0.50 | 0.50 | 0.54 | 0.50 | |
| TJX Cos. Inc. | 0.51 | 0.27 | 0.31 | 0.30 | 0.33 | 0.27 | |
| Debt to Capital, Sector | |||||||
| General Retailers | — | 0.48 | 0.51 | 0.49 | 0.50 | 0.46 | |
| Debt to Capital, Industry | |||||||
| Consumer Services | — | 0.55 | 0.55 | 0.56 | 0.52 | 0.50 | |
Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).
1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 48,871 ÷ 129,796 = 0.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Walmart Inc.’s debt to capital ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Capital (including Operating Lease Liability)
Walmart Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term borrowings | 224 | 575 | 5,225 | 5,257 | 1,099 | 2,708 | |
| Long-term debt due within one year | 3,115 | 5,362 | 1,876 | 3,738 | 2,256 | 2,745 | |
| Finance lease obligations due within one year | 491 | 511 | — | — | — | — | |
| Capital lease and financing obligations due within one year | — | — | 729 | 667 | 565 | 551 | |
| Long-term debt, excluding due within one year | 41,194 | 43,714 | 43,520 | 30,045 | 36,015 | 38,214 | |
| Long-term finance lease obligations, excluding due within one year | 3,847 | 4,307 | — | — | — | — | |
| Long-term capital lease and financing obligations, excluding due within one year | — | — | 6,683 | 6,780 | 6,003 | 5,816 | |
| Total debt | 48,871 | 54,469 | 58,033 | 46,487 | 45,938 | 50,034 | |
| Operating lease obligations due within one year | 1,466 | 1,793 | — | — | — | — | |
| Long-term operating lease obligations, excluding due within one year | 12,909 | 16,171 | — | — | — | — | |
| Total debt (including operating lease liability) | 63,246 | 72,433 | 58,033 | 46,487 | 45,938 | 50,034 | |
| Total Walmart shareholders’ equity | 80,925 | 74,669 | 72,496 | 77,869 | 77,798 | 80,546 | |
| Total capital (including operating lease liability) | 144,171 | 147,102 | 130,529 | 124,356 | 123,736 | 130,580 | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.44 | 0.49 | 0.44 | 0.37 | 0.37 | 0.38 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | — | 0.52 | 0.56 | 0.49 | 0.59 | 0.48 | |
| Costco Wholesale Corp. | — | 0.36 | 0.31 | 0.34 | 0.38 | 0.30 | |
| Dollar General Corp. | 0.67 | 0.64 | 0.31 | 0.33 | 0.37 | 0.36 | |
| Home Depot Inc. | 0.93 | 1.09 | 1.07 | 0.95 | 0.84 | 0.77 | |
| Lowe’s Cos. Inc. | 0.95 | 0.92 | 0.82 | 0.74 | 0.71 | 0.62 | |
| Target Corp. | 0.51 | 0.54 | 0.54 | 0.50 | 0.54 | 0.50 | |
| TJX Cos. Inc. | 0.73 | 0.66 | 0.31 | 0.30 | 0.33 | 0.27 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| General Retailers | — | 0.57 | 0.54 | 0.49 | 0.50 | 0.46 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Services | — | 0.60 | 0.58 | 0.56 | 0.52 | 0.50 | |
Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).
1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 63,246 ÷ 144,171 = 0.44
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Walmart Inc.’s debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Debt to Assets
Walmart Inc., debt to assets calculation, comparison to benchmarks
| Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term borrowings | 224 | 575 | 5,225 | 5,257 | 1,099 | 2,708 | |
| Long-term debt due within one year | 3,115 | 5,362 | 1,876 | 3,738 | 2,256 | 2,745 | |
| Finance lease obligations due within one year | 491 | 511 | — | — | — | — | |
| Capital lease and financing obligations due within one year | — | — | 729 | 667 | 565 | 551 | |
| Long-term debt, excluding due within one year | 41,194 | 43,714 | 43,520 | 30,045 | 36,015 | 38,214 | |
| Long-term finance lease obligations, excluding due within one year | 3,847 | 4,307 | — | — | — | — | |
| Long-term capital lease and financing obligations, excluding due within one year | — | — | 6,683 | 6,780 | 6,003 | 5,816 | |
| Total debt | 48,871 | 54,469 | 58,033 | 46,487 | 45,938 | 50,034 | |
| Total assets | 252,496 | 236,495 | 219,295 | 204,522 | 198,825 | 199,581 | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.19 | 0.23 | 0.26 | 0.23 | 0.23 | 0.25 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.19 | 0.23 | 0.26 | 0.30 | 0.21 | |
| Costco Wholesale Corp. | — | 0.14 | 0.15 | 0.16 | 0.18 | 0.16 | |
| Dollar General Corp. | 0.16 | 0.13 | 0.22 | 0.24 | 0.28 | 0.26 | |
| Home Depot Inc. | 0.53 | 0.61 | 0.66 | 0.61 | 0.55 | 0.50 | |
| Lowe’s Cos. Inc. | 0.47 | 0.49 | 0.47 | 0.48 | 0.46 | 0.40 | |
| Target Corp. | 0.25 | 0.27 | 0.27 | 0.30 | 0.34 | 0.32 | |
| TJX Cos. Inc. | 0.20 | 0.09 | 0.16 | 0.16 | 0.17 | 0.14 | |
| Debt to Assets, Sector | |||||||
| General Retailers | — | 0.24 | 0.28 | 0.28 | 0.29 | 0.27 | |
| Debt to Assets, Industry | |||||||
| Consumer Services | — | 0.33 | 0.34 | 0.37 | 0.34 | 0.32 | |
Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).
1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 48,871 ÷ 252,496 = 0.19
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Walmart Inc.’s debt to assets ratio improved from 2019 to 2020 and from 2020 to 2021. |
Debt to Assets (including Operating Lease Liability)
Walmart Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term borrowings | 224 | 575 | 5,225 | 5,257 | 1,099 | 2,708 | |
| Long-term debt due within one year | 3,115 | 5,362 | 1,876 | 3,738 | 2,256 | 2,745 | |
| Finance lease obligations due within one year | 491 | 511 | — | — | — | — | |
| Capital lease and financing obligations due within one year | — | — | 729 | 667 | 565 | 551 | |
| Long-term debt, excluding due within one year | 41,194 | 43,714 | 43,520 | 30,045 | 36,015 | 38,214 | |
| Long-term finance lease obligations, excluding due within one year | 3,847 | 4,307 | — | — | — | — | |
| Long-term capital lease and financing obligations, excluding due within one year | — | — | 6,683 | 6,780 | 6,003 | 5,816 | |
| Total debt | 48,871 | 54,469 | 58,033 | 46,487 | 45,938 | 50,034 | |
| Operating lease obligations due within one year | 1,466 | 1,793 | — | — | — | — | |
| Long-term operating lease obligations, excluding due within one year | 12,909 | 16,171 | — | — | — | — | |
| Total debt (including operating lease liability) | 63,246 | 72,433 | 58,033 | 46,487 | 45,938 | 50,034 | |
| Total assets | 252,496 | 236,495 | 219,295 | 204,522 | 198,825 | 199,581 | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.25 | 0.31 | 0.26 | 0.23 | 0.23 | 0.25 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | — | 0.31 | 0.34 | 0.26 | 0.30 | 0.21 | |
| Costco Wholesale Corp. | — | 0.19 | 0.15 | 0.16 | 0.18 | 0.16 | |
| Dollar General Corp. | 0.53 | 0.51 | 0.22 | 0.24 | 0.28 | 0.26 | |
| Home Depot Inc. | 0.62 | 0.73 | 0.66 | 0.61 | 0.55 | 0.50 | |
| Lowe’s Cos. Inc. | 0.56 | 0.60 | 0.47 | 0.48 | 0.46 | 0.40 | |
| Target Corp. | 0.29 | 0.33 | 0.33 | 0.30 | 0.34 | 0.32 | |
| TJX Cos. Inc. | 0.50 | 0.47 | 0.16 | 0.16 | 0.17 | 0.14 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| General Retailers | — | 0.35 | 0.32 | 0.28 | 0.29 | 0.27 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Services | — | 0.41 | 0.39 | 0.37 | 0.34 | 0.32 | |
Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).
1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 63,246 ÷ 252,496 = 0.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Walmart Inc.’s debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Financial Leverage
Walmart Inc., financial leverage calculation, comparison to benchmarks
| Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 252,496 | 236,495 | 219,295 | 204,522 | 198,825 | 199,581 | |
| Total Walmart shareholders’ equity | 80,925 | 74,669 | 72,496 | 77,869 | 77,798 | 80,546 | |
| Solvency Ratio | |||||||
| Financial leverage1 | 3.12 | 3.17 | 3.02 | 2.63 | 2.56 | 2.48 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Amazon.com Inc. | — | 3.44 | 3.63 | 3.73 | 4.74 | 4.32 | |
| Costco Wholesale Corp. | — | 3.04 | 2.98 | 3.19 | 3.37 | 2.75 | |
| Dollar General Corp. | 3.88 | 3.41 | 2.06 | 2.04 | 2.16 | 2.09 | |
| Home Depot Inc. | 21.39 | — | — | 30.63 | 9.92 | 6.74 | |
| Lowe’s Cos. Inc. | 32.52 | 20.02 | 9.47 | 6.01 | 5.35 | 4.08 | |
| Target Corp. | 3.55 | 3.62 | 3.65 | 3.33 | 3.42 | 3.11 | |
| TJX Cos. Inc. | 5.28 | 4.06 | 2.84 | 2.73 | 2.86 | 2.67 | |
| Financial Leverage, Sector | |||||||
| General Retailers | — | 3.79 | 3.66 | 3.36 | 3.42 | 3.05 | |
| Financial Leverage, Industry | |||||||
| Consumer Services | — | 3.75 | 3.61 | 3.48 | 3.19 | 3.09 | |
Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).
1 2021 Calculation
Financial leverage = Total assets ÷ Total Walmart shareholders’ equity
= 252,496 ÷ 80,925 = 3.12
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Walmart Inc.’s financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021. |
Interest Coverage
Walmart Inc., interest coverage calculation, comparison to benchmarks
| Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Consolidated net income attributable to Walmart | 13,510 | 14,881 | 6,670 | 9,862 | 13,643 | 14,694 | |
| Add: Net income attributable to noncontrolling interest | 196 | 320 | 509 | 661 | 650 | 386 | |
| Add: Income tax expense | 6,858 | 4,915 | 4,281 | 4,600 | 6,204 | 6,558 | |
| Add: Interest expense, debt, finance, capital lease and financing obligations | 2,315 | 2,599 | 2,346 | 2,330 | 2,367 | 2,548 | |
| Earnings before interest and tax (EBIT) | 22,879 | 22,715 | 13,806 | 17,453 | 22,864 | 24,186 | |
| Solvency Ratio | |||||||
| Interest coverage1 | 9.88 | 8.74 | 5.88 | 7.49 | 9.66 | 9.49 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Amazon.com Inc. | — | 15.69 | 9.73 | 8.95 | 5.48 | 8.84 | |
| Costco Wholesale Corp. | — | 34.54 | 32.77 | 28.94 | 31.14 | 28.21 | |
| Dollar General Corp. | 23.64 | 22.89 | 21.18 | 20.66 | 21.09 | 22.31 | |
| Home Depot Inc. | 13.60 | 13.25 | 14.85 | 13.96 | 13.85 | 12.99 | |
| Lowe’s Cos. Inc. | 9.88 | 8.83 | 6.21 | 9.46 | 8.92 | 8.95 | |
| Target Corp. | 6.68 | 9.78 | 8.97 | 6.47 | 4.95 | 9.11 | |
| TJX Cos. Inc. | 1.46 | 75.57 | 65.36 | 60.98 | 61.37 | 61.70 | |
| Interest Coverage, Sector | |||||||
| General Retailers | — | 12.61 | 10.03 | 10.23 | 10.07 | 11.18 | |
| Interest Coverage, Industry | |||||||
| Consumer Services | — | 6.20 | 6.64 | 7.01 | 8.27 | 8.92 | |
Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).
1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 22,879 ÷ 2,315 = 9.88
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Walmart Inc.’s interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |
Fixed Charge Coverage
Walmart Inc., fixed charge coverage calculation, comparison to benchmarks
| Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | Jan 31, 2018 | Jan 31, 2017 | Jan 31, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Consolidated net income attributable to Walmart | 13,510 | 14,881 | 6,670 | 9,862 | 13,643 | 14,694 | |
| Add: Net income attributable to noncontrolling interest | 196 | 320 | 509 | 661 | 650 | 386 | |
| Add: Income tax expense | 6,858 | 4,915 | 4,281 | 4,600 | 6,204 | 6,558 | |
| Add: Interest expense, debt, finance, capital lease and financing obligations | 2,315 | 2,599 | 2,346 | 2,330 | 2,367 | 2,548 | |
| Earnings before interest and tax (EBIT) | 22,879 | 22,715 | 13,806 | 17,453 | 22,864 | 24,186 | |
| Add: Operating lease cost | 2,626 | 2,670 | 3,000 | 2,900 | 2,600 | 2,500 | |
| Earnings before fixed charges and tax | 25,505 | 25,385 | 16,806 | 20,353 | 25,464 | 26,686 | |
| Interest expense, debt, finance, capital lease and financing obligations | 2,315 | 2,599 | 2,346 | 2,330 | 2,367 | 2,548 | |
| Operating lease cost | 2,626 | 2,670 | 3,000 | 2,900 | 2,600 | 2,500 | |
| Fixed charges | 4,941 | 5,269 | 5,346 | 5,230 | 4,967 | 5,048 | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 5.16 | 4.82 | 3.14 | 3.89 | 5.13 | 5.29 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Amazon.com Inc. | — | 4.63 | 3.65 | 3.34 | 2.25 | 3.01 | |
| Costco Wholesale Corp. | — | 14.03 | 12.40 | 11.48 | 11.30 | 10.45 | |
| Dollar General Corp. | 3.22 | 2.61 | 2.60 | 2.62 | 2.89 | 2.96 | |
| Home Depot Inc. | 8.97 | 8.26 | 7.80 | 7.49 | 7.39 | 6.99 | |
| Lowe’s Cos. Inc. | 6.05 | 5.04 | 3.68 | 5.31 | 5.31 | 5.29 | |
| Target Corp. | 5.24 | 6.48 | 6.16 | 5.10 | 4.29 | 7.12 | |
| TJX Cos. Inc. | 1.04 | 3.43 | 3.39 | 3.35 | 3.51 | 3.59 | |
| Fixed Charge Coverage, Sector | |||||||
| General Retailers | — | 5.10 | 4.19 | 4.38 | 4.64 | 5.12 | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Services | — | 3.67 | 3.87 | 3.98 | 4.49 | 4.73 | |
Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-20), 10-K (filing date: 2019-03-28), 10-K (filing date: 2018-03-30), 10-K (filing date: 2017-03-31), 10-K (filing date: 2016-03-30).
1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 25,505 ÷ 4,941 = 5.16
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Walmart Inc.’s fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021. |