Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Walmart Inc., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Walmart Inc. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Walmart Inc. receivables turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Walmart Inc. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Walmart Inc. number of days of inventory outstanding improved from 2022 to 2023 and from 2023 to 2024. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Walmart Inc. operating cycle improved from 2022 to 2023 and from 2023 to 2024. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Walmart Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Inventory Turnover
Walmart Inc., inventory turnover calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 490,142) | 463,721) | 429,000) | 420,315) | 394,605) | 385,301) | |
| Inventories | 54,892) | 56,576) | 56,511) | 44,949) | 44,435) | 44,269) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 8.93 | 8.20 | 7.59 | 9.35 | 8.88 | 8.70 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 12.77 | 11.13 | 12.01 | 11.84 | 11.66 | |
| Target Corp. | 6.54 | 6.09 | 5.39 | 6.21 | 6.10 | 5.61 | |
| Inventory Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 8.75 | 7.96 | 9.41 | 9.05 | 8.77 | |
| Inventory Turnover, Industry | |||||||
| Consumer Staples | — | 8.21 | 7.60 | 8.82 | 8.40 | 8.24 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 490,142 ÷ 54,892 = 8.93
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Walmart Inc. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024. |
Receivables Turnover
Walmart Inc., receivables turnover calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 642,637) | 605,881) | 567,762) | 555,233) | 519,926) | 510,329) | |
| Receivables, net | 8,796) | 7,933) | 8,280) | 6,516) | 6,284) | 6,283) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 73.06 | 76.37 | 68.57 | 85.21 | 82.74 | 81.22 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 104.03 | 99.39 | 106.52 | 105.30 | 97.30 | |
| Target Corp. | 118.75 | 92.03 | 125.28 | 146.43 | 154.88 | 117.77 | |
| Receivables Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 83.53 | 78.82 | 93.82 | 91.25 | 86.88 | |
| Receivables Turnover, Industry | |||||||
| Consumer Staples | — | 35.38 | 34.89 | 38.54 | 37.27 | 34.73 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Receivables turnover = Net sales ÷ Receivables, net
= 642,637 ÷ 8,796 = 73.06
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Walmart Inc. receivables turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. |
Payables Turnover
Walmart Inc., payables turnover calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 490,142) | 463,721) | 429,000) | 420,315) | 394,605) | 385,301) | |
| Accounts payable | 56,812) | 53,742) | 55,261) | 49,141) | 46,973) | 47,060) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 8.63 | 8.63 | 7.76 | 8.55 | 8.40 | 8.19 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 12.16 | 11.17 | 10.49 | 10.23 | 11.38 | |
| Target Corp. | 6.43 | 6.10 | 4.84 | 5.15 | 5.53 | 5.46 | |
| Payables Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 8.95 | 7.94 | 8.40 | 8.36 | 8.34 | |
| Payables Turnover, Industry | |||||||
| Consumer Staples | — | 7.10 | 6.51 | 6.79 | 6.85 | 6.89 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 490,142 ÷ 56,812 = 8.63
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Walmart Inc. payables turnover ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024. |
Working Capital Turnover
Walmart Inc., working capital turnover calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 76,877) | 75,655) | 81,070) | 90,067) | 61,806) | 61,897) | |
| Less: Current liabilities | 92,415) | 92,198) | 87,379) | 92,645) | 77,790) | 77,477) | |
| Working capital | (15,538) | (16,543) | (6,309) | (2,578) | (15,984) | (15,580) | |
| Net sales | 642,637) | 605,881) | 567,762) | 555,233) | 519,926) | 510,329) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 103.53 | 319.10 | 3,000.81 | 49.82 | 602.22 | |
| Target Corp. | — | — | — | 146.43 | — | — | |
| Working Capital Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | — | — | — | — | — | |
| Working Capital Turnover, Industry | |||||||
| Consumer Staples | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Working capital turnover = Net sales ÷ Working capital
= 642,637 ÷ -15,538 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Walmart Inc., average inventory processing period calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 8.93 | 8.20 | 7.59 | 9.35 | 8.88 | 8.70 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 41 | 45 | 48 | 39 | 41 | 42 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 29 | 33 | 30 | 31 | 31 | |
| Target Corp. | 56 | 60 | 68 | 59 | 60 | 65 | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 42 | 46 | 39 | 40 | 42 | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Staples | — | 44 | 48 | 41 | 43 | 44 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 8.93 = 41
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Walmart Inc. number of days of inventory outstanding improved from 2022 to 2023 and from 2023 to 2024. |
Average Receivable Collection Period
Walmart Inc., average receivable collection period calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 73.06 | 76.37 | 68.57 | 85.21 | 82.74 | 81.22 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 5 | 5 | 5 | 4 | 4 | 4 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 4 | 4 | 3 | 3 | 4 | |
| Target Corp. | 3 | 4 | 3 | 2 | 2 | 3 | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 4 | 5 | 4 | 4 | 4 | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Staples | — | 10 | 10 | 9 | 10 | 11 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 73.06 = 5
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Walmart Inc., operating cycle calculation, comparison to benchmarks
No. days
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 41 | 45 | 48 | 39 | 41 | 42 | |
| Average receivable collection period | 5 | 5 | 5 | 4 | 4 | 4 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 46 | 50 | 53 | 43 | 45 | 46 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 33 | 37 | 33 | 34 | 35 | |
| Target Corp. | 59 | 64 | 71 | 61 | 62 | 68 | |
| Operating Cycle, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 46 | 51 | 43 | 44 | 46 | |
| Operating Cycle, Industry | |||||||
| Consumer Staples | — | 54 | 58 | 50 | 53 | 55 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 41 + 5 = 46
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Walmart Inc. operating cycle improved from 2022 to 2023 and from 2023 to 2024. |
Average Payables Payment Period
Walmart Inc., average payables payment period calculation, comparison to benchmarks
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 8.63 | 8.63 | 7.76 | 8.55 | 8.40 | 8.19 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 42 | 42 | 47 | 43 | 43 | 45 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 30 | 33 | 35 | 36 | 32 | |
| Target Corp. | 57 | 60 | 75 | 71 | 66 | 67 | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 41 | 46 | 43 | 44 | 44 | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Staples | — | 51 | 56 | 54 | 53 | 53 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.63 = 42
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. |
Cash Conversion Cycle
Walmart Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | Jan 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 41 | 45 | 48 | 39 | 41 | 42 | |
| Average receivable collection period | 5 | 5 | 5 | 4 | 4 | 4 | |
| Average payables payment period | 42 | 42 | 47 | 43 | 43 | 45 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 4 | 8 | 6 | 0 | 2 | 1 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 3 | 4 | -2 | -2 | 3 | |
| Target Corp. | 2 | 4 | -4 | -10 | -4 | 1 | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 5 | 5 | 0 | 0 | 2 | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Staples | — | 3 | 2 | -4 | 0 | 2 | |
Based on: 10-K (reporting date: 2024-01-31), 10-K (reporting date: 2023-01-31), 10-K (reporting date: 2022-01-31), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-01-31).
1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 41 + 5 – 42 = 4
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Walmart Inc. cash conversion cycle deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |