Walmart Inc. (NYSE:WMT)

Debt to Equity

The debt to equity ratio shows a general declining trend from 0.85 in April 2020 to fluctuating values around 0.5 to 0.7 in subsequent periods. Notably, there is a decrease observed starting mid-2023, reaching as low as 0.5 by January 2025, indicating reduced reliance on debt relative to equity over time, although volatility remains present.

Debt to Equity (Including Operating Lease Liability)

This ratio shows a similar downward pattern from 1.11 in early 2020 to approximately 0.7–0.8 by mid-2025. The inclusion of lease liabilities results in higher leverage figures, but the trend suggests a consistent decline, reflecting improved debt management including lease obligations.

Debt to Capital

The debt to capital ratio remains relatively stable with minor fluctuations between 0.33 and 0.46 across the analyzed periods. The slight downward movement toward late 2024 and early 2025 suggests modest improvement in capital structure with decreased debt proportion.

Debt to Capital (Including Operating Lease Liability)

When including operating lease liabilities, this ratio is naturally higher but follows a similar trend to the standard debt to capital ratio. It decreased marginally from highs near 0.53 in early 2020 to values around 0.4 to 0.45 by the most recent periods, reinforcing the conclusion of a gradually improving balance sheet structure.

Debt to Assets

The ratio of debt to assets remains stable around the 0.18 to 0.21 range throughout the timeline, showing limited volatility. This suggests consistent asset financing practices, with debt representing a controlled portion of total assets.

Debt to Assets (Including Operating Lease Liability)

Including lease liabilities results in a slightly higher ratio, starting from 0.32 in April 2020 and declining to about 0.24 in recent periods. The pattern indicates steady management of total liabilities relative to assets, including leases, over time.

Financial Leverage

Financial leverage ratios exhibit mild fluctuations with a slight downward trend from around 3.4 in 2020 to approximately 3.0 by early 2025. This decrease implies a marginal reduction in the proportion of total assets financed by equity, possibly contributing to lower risk levels.

Interest Coverage

Interest coverage ratios demonstrate volatility but generally remain strong, fluctuating mostly between 8 and 12 times. Although there are some declines in mid-2021 and late 2022, the ratio recovers in most periods, indicating sustained ability to cover interest expenses comfortably across the quarters.

Total Debt

The total debt demonstrates a fluctuating trend over the observed periods. Initially, it decreased from US$58,034 million to a low of around US$42,831 million by January 31, 2022. Subsequently, there is a notable rebound with total debt increasing again to peaks above US$55,000 million by October 31, 2023. Following this, the debt levels show moderate fluctuations but tend to stabilize around the US$47,000 to US$53,000 million range toward the most recent quarters.

Total Shareholders’ Equity

Shareholders’ equity generally shows an upward trajectory in the majority of the periods. Starting at US$68,240 million in April 2020, it rose steadily to exceed US$83,000 million by January 2022. After a temporary dip to approximately US$72,253 million by October 2022, equity values resumed growth reaching a high point above US$91,000 million by April 2025. The pattern indicates strong equity growth with intermittent minor contractions that may reflect market conditions or company-specific factors.

Debt to Equity Ratio

This ratio exhibits a declining trend from 0.85 in April 2020 to approximately 0.51 by January 2022, indicating improved leverage and potentially lower financial risk during that interval. However, the ratio later shows volatility, rising again to around 0.7 by October 2023 before decreasing towards 0.5 in the concluding periods. These fluctuations suggest shifts in the company’s capital structure, likely due to changes in both debt and equity levels. Overall, the ratio indicates a relatively moderate leverage position with some variability over time.

Overall Insights

The cyclical movements in total debt alongside the mostly upward trend in shareholders’ equity imply active management of the capital structure, balancing growth initiatives and financial stability. The initial reduction in debt combined with rising equity led to a safer leverage profile, although later periods show a willingness to increase debt again, possibly to support expansion or operational needs. The debt to equity ratio’s movement corroborates these adjustments, reflecting the company's dynamic approach to financing amidst varying economic conditions.

Total Debt (Including Operating Lease Liability)

The total debt exhibited a declining trend from April 2020 to January 2022, decreasing from approximately $75.4 billion to $57.3 billion. However, starting from April 2022, the debt level shows increased volatility with fluctuations between $58.9 billion and $69.7 billion. Notably, there is a peak in October 2023 reaching nearly $69.7 billion, followed by a gradual decrease toward July 2024, and a subsequent rise again by July 2025.

Total Walmart Shareholders' Equity

The equity level generally increased over the observed periods, starting from about $68.2 billion in April 2020 and moving upward to reach a high point of approximately $91.0 billion by January 2025. There are intermittent declines, such as between October 2021 and April 2022, and similarly from January 2025 to April 2025, but the overall trajectory suggests strengthening equity capitalization over time.

Debt to Equity Ratio (Including Operating Lease Liability)

The debt to equity ratio demonstrates a downward trend from 1.11 in April 2020 to a low of 0.66 in January 2025, indicating an improvement in leverage position relative to shareholders' equity. Despite some fluctuations, the ratio consistently remains below the initial level, reflecting a tendency towards reduced reliance on debt financing relative to equity. Periodic increases in the ratio, such as in October 2022 (0.90) and October 2023 (0.88), highlight temporary upticks in leverage, but the longer-term view shows enhanced financial stability through reduced gearing.

Summary Insight

The financial data reveal a company cautiously managing its leverage by steadily reducing the total debt from mid-2020 through early 2022, followed by fluctuating debt levels later on. Equity has shown generally positive growth, reinforcing the company's capital base. The declining debt to equity ratio over multiple quarters confirms an overall trend towards improving financial structure and lower leverage risk. This suggests prudent capital management aimed at strengthening balance sheet resilience amid variable market conditions.

Total Debt

The total debt exhibits fluctuations over the analyzed periods with an overall tendency towards volatility. Starting from a high of approximately $58 billion, debt levels decreased steadily through early 2021, reaching a trough near $43 billion at the beginning of 2022. Following this, the debt values reflected a cyclical movement, rising again to peaks around $55 billion before gradually declining towards mid-2025. The observed variations suggest periodic borrowing adjustments or debt repayments aligning with operational or strategic financial decisions.

Total Capital

Total capital remained relatively stable with moderate increases and minor declines throughout the periods. Initial figures near $126 billion showed slight fluctuations, followed by a gradual upward trend beginning in late 2022, peaking above $140 billion by mid-2025. This gradual growth points to sustained capital expansion, potentially supported by equity growth or reinvested earnings, highlighting steady strengthening of the capital base.

Debt to Capital Ratio

The debt to capital ratio demonstrates significant variations corresponding with movements in debt and capital levels. Initially high around 0.46, it decreased to the mid-0.30 range by early 2022, indicating a reduction in leverage. Post-2022, the ratio shows a fluctuating pattern between approximately 0.33 and 0.42. The downward trend towards the end of the period to near 0.36 suggests a modest reduction in leverage, reflecting cautious debt management and a maintained balance between debt and equity financing.

Total Debt (Including Operating Lease Liability)

The total debt level exhibits fluctuations over the examined quarters. Initially, there is a decline from approximately 75.4 billion USD in April 2020 to around 57.3 billion USD by January 2022, indicating a reduction in leverage during this period. However, from April 2022 onwards, total debt generally increases again, reaching a peak near 69.7 billion USD in October 2023, before decreasing slightly towards 65.0 billion USD by July 2025. This pattern suggests periods of both deleveraging and increased borrowing across the timeline.

Total Capital (Including Operating Lease Liability)

Total capital remains relatively stable with moderate increases and decreases throughout the quarters. Starting at about 143.7 billion USD in April 2020, total capital fluctuates within a range of roughly 135.6 billion USD to 155.1 billion USD across the period. There is no clear directional trend but a tendency towards stabilization in the latter part of the timeline, with capital levels staying near the upper end of the range around 150 billion USD from late 2023 to mid-2025.

Debt to Capital Ratio

The debt to capital ratio demonstrates a downward trend in the early periods, moving from 0.53 in April 2020 to a low near 0.40 in early 2025, indicating a relative reduction in debt compared to total capital over the long term. Despite intermittent rises, the ratio mostly stays below 0.5 after mid-2020, reflecting improved capital structure management. The ratio’s fluctuations suggest active balancing between debt and equity components to maintain leverage within a targeted range, with the lowest observed ratio around 0.40 occurring in the first quarter of 2025.

Overall Insights

The data indicates a strategic approach to capital structure, initially focusing on debt reduction followed by phases of increased borrowing. Despite the fluctuations, total capital remains stable and generally expands slightly over time. The consistent management of the debt to capital ratio under 0.5 for most periods suggests an emphasis on maintaining moderate leverage, which could contribute to financial flexibility and risk management. These patterns highlight a dynamic but controlled adjustment of financial leverage in response to operational or market conditions.

Total debt

The total debt exhibits fluctuations over the observed periods without a clear linear trend. Initially, there is a decline from approximately 58 billion USD in April 2020 to about 43 billion USD by January 2022. This is followed by a rise peaking around 55 billion USD in October 2023, before declining again to approximately 50 billion USD by July 2025. These variations indicate periodic adjustments in the company's leverage possibly related to financing or repayment activities.

Total assets

Total assets show a general increasing trend throughout the period. Starting at approximately 233 billion USD in April 2020, assets grow steadily with some minor fluctuations, reaching above 270 billion USD by July 2025. This upward movement suggests ongoing asset accumulation or valuation increases, reflecting overall growth in the company's resource base.

Debt to assets ratio

The debt to assets ratio ranges between 0.17 and 0.25, indicating moderate leverage levels. From April 2020 to early 2022, the ratio generally decreases, stabilizing near 0.18, corresponding to the reduction in total debt relative to assets. From mid-2022 onward, the ratio increases slightly, hovering around 0.19 to 0.21, reflecting a modest rise in leverage relative to total assets. The ratio remains relatively stable towards the later periods, implying maintained balance between debt and asset growth.

Total Debt (Including Operating Lease Liability)

Over the observed periods, total debt exhibits a generally fluctuating pattern, with values ranging between approximately $57 billion and $75 billion. Initially, there is a decline from around $75 billion in April 2020 to roughly $57 billion by early 2022. Following this period, total debt increases again, reaching peaks close to $70 billion in late 2023, before tapering off slightly in 2024 and early 2025. These fluctuations suggest active debt management, possibly influenced by operational financing needs or strategic investments.

Total Assets

Total assets show a steady upward trend throughout the entire timeframe. Starting from approximately $233 billion in April 2020, assets gradually increase, with minor seasonal or cyclical variations, to about $271 billion by mid-2025. This indicates consistent asset growth, likely reflecting expansion, acquisitions, appreciation, or reinvestment strategies. The growth in assets appears relatively stable despite fluctuations in debt levels.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio trends downward from 0.32 in early 2020 to about 0.23-0.24 in 2025, with some fluctuations along the way. This decline suggests an improvement in the company’s leverage position, implying that the growth in assets has outpaced the increase in debt over time. Periodic rises in the ratio correspond with short-term increases in debt or slower asset growth, but the overall trajectory indicates a more conservative use of leverage.

Overall Analysis

The financial data reveals a company actively managing its debt while steadily growing its asset base. The fluctuating but relatively stable debt levels, combined with a gradual increase in total assets, result in a declining leverage ratio. This could signify prudent financial management aimed at maintaining a healthy balance sheet and financial flexibility. The trends suggest the company is potentially positioning itself for long-term stability and growth.

The analysis of the quarterly financial data reveals several notable trends regarding the company's total assets, shareholders' equity, and financial leverage over the observed periods.

Total Assets

Total assets demonstrated a gradual upward trend overall, increasing from approximately 232.9 billion US dollars in April 2020 to about 270.8 billion US dollars by July 2025. This growth was somewhat uneven, with several periods showing minor declines or plateaus, such as between January 2021 and April 2021, and again in early 2023. Nonetheless, the long-term direction indicates expansion in the asset base, suggesting ongoing investment or acquisitions.

Total Walmart Shareholders’ Equity

Shareholders' equity exhibited significant fluctuations across the quarters. Beginning at around 68.2 billion US dollars in April 2020, it generally increased to peak near 91.0 billion US dollars by July 2024. However, there were notable volatility phases, including a pronounced decline during late 2022 and early 2023, where equity dropped from approximately 77.6 billion to about 72.3 billion US dollars, followed by recovery periods. These variations may imply changes due to earnings performance, dividend payouts, or equity restructuring activities.

Financial Leverage Ratio

The financial leverage ratio, which reflects the proportion of total assets to shareholders' equity, ranged between roughly 2.87 and 3.43 over the timeline. The ratio started at 3.41 in April 2020, decreased gradually to a low near 2.87 by early 2025, before rising again slightly toward mid-2025. This pattern indicates that the company maintained a relatively stable leverage position, with modest oscillations suggesting adjustments in debt or equity financing strategies. The generally decreasing leverage trend toward the latter periods points to a potential strengthening of the equity base relative to assets.

In summary, the company exhibited steady asset growth accompanied by fluctuating but overall increasing shareholders' equity. Financial leverage remained moderate and relatively stable, reflecting prudent balance sheet management. The cyclical nature of equity changes and leverage adjustments may correspond to operational results and strategic capital decisions during the observed periods.

Earnings Before Interest and Tax (EBIT)

The EBIT values exhibit notable volatility across the observed periods. Starting from 5,988 million USD in April 2020, there is a substantial increase to 9,304 million USD by July 2020, followed by fluctuations with marked decreases in January 2021 (-69 million USD) and October 2022 (-847 million USD), indicating periods of financial strain or one-time impacts. Post these declines, the EBIT generally trends upward, highlighted by peaks in January 2023 (9,512 million USD) and July 2023 (11,369 million USD). Although fluctuations persist, the latter periods maintain a higher baseline compared to the initial data points, suggesting recovery and growth phases amid volatility.

Interest Expense (Debt and Finance Lease)

Interest expenses remain relatively stable across quarters without exhibiting significant trends. Values range mostly between 400 and 700 million USD, with minor increases and decreases that appear cyclical rather than directional. The highest interest expenses are observed in January 2025 (769 million USD), indicating a gradual increase over the long term but without dramatic shifts quarter to quarter.

Interest Coverage Ratio

The interest coverage ratio, which measures the ability to meet interest obligations from operating earnings, generally stays within a healthy range, mostly above 7. This indicates sufficient EBIT relative to interest expenses for most periods. The ratio peaks at 11.98 in October 2020 and dips to its lowest point of 7.37 in October 2021, mirroring the EBIT volatility observed in similar time frames. Despite fluctuations, the ratio shows resilience, climbing back above 10 in multiple subsequent quarters, reflecting improved profitability or controlled interest costs. The later periods demonstrate a stable or improving interest coverage, peaking at 11.35 in July 2025, which suggests enhancing financial health.

Overall Analysis

The financial data reveals a pattern of significant EBIT volatility impacted by specific quarters with negative earnings, followed by periods of recovery and growth. Interest expenses are steady, implying consistent debt service obligations without major refinancing or shifts in debt structure. The interest coverage ratio sustains a generally strong position, recovering quickly after dips related to EBIT declines. This indicates that despite profit fluctuations, the company maintains the capability to cover interest expenses comfortably, which is a positive sign for financial stability. The trend towards stronger EBIT figures and improving interest coverage in recent quarters suggests an upward trajectory in operational performance and financial robustness.