Walmart solvency ratios. 2 for the 2021 period.

Walmart solvency ratios A solvency ratio examines a firm's ability to meet its long-term debts and obligations. Is Walmart more profitable in A liquidity ratio is used to determine a company’s ability to pay its short-term debt obligations. 08. Receivables turnover: An activity ratio equal to revenue divided by receivables. Alpha Spread. 83, which indicates that the company may have difficulties meeting its short-term obligations with its current assets. adjusted debt-to-capital ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. 14 to 0. Debt to Equity. A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Summary HSBA Integrative Case Study 4. many financial ratios are used for the purpose of credit analysis, to see where a company stands Amazon Ratios and Metrics. 64 USD 0. 79 for Target and 11. Overall, the consistent low debt-to-assets ratio of Walmart Inc implies a prudent debt management strategy and financial strength. In terms of solvency ratio Target outperforms Comparative analysis was carried out on such indicators of financial analysis as current liquidity ratios, equity and financial leverage concentration ratios, as well as interest-to-payment ratios At 2. 87 16. 48 47. 56 Quick Ratio Walmart Inc (NYSE:WMT) Altman Z-Score ratio. 94 D/A See Also. 7 30. Walmart Inc NYSE:WMT Retail US: Verizon Communications Inc NYSE:VZ Telecommunication Add Price Alert Price Target: Last Price: 63. 23. Efficiency Ratios: Efficiency ratios analyze how well a company uses its assets and manages its operations. Walmart - as of Jan 31 Financial Performance in the Retail Industry years as compared to Walmart’s 16. Try our user-friendly, cost-effective solution for financial specialists, accountants, auditors, and finance students. Current FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 2018 - 2014; Period Ending. Considered one of the most frequently used multiples for comparisons among companies, the EV/EBIT multiple relies on operating income as the core driver of valuation. 01 in January 2024. 98%, calculated as Risk-Free This can be reflected in liquidity ratios such as the current ratio and quick ratio, which measure a company's ability to meet short-term obligations. Financial leverage ratio: A solvency ratio calculated as total assets divided by total shareholders’ equity. 2) Part A analyzes changes in Walmart's return on assets, short-term liquidity risk, and long-term solvency risk during the period using financial ratios. 45 for the fiscal year ending January 31, 2024, suggests that the company generated operating income 10. Should include a discussion for each major category of ratios, including BIBLICAL WORLDVIEW • Walmart's financial position was increased due to the COVID-19 pandemic that started March 2020. Provide Interest Coverage Ratio However, the ratio has since decreased but remained above 7, suggesting the company is still able to cover its interest obligations. 94 to a high of 3. Yannick Coulon; Pages 47-62. 56 58. In conclusion, Walmart's financial ratios indicate a strong financial performance across profitability, liquidity, efficiency, and solvency. Fiscal year is Jan - Dec. 82 D/A 0. Fiscal year is October - September. This includes the cost of equity at 7. current ratio deteriorated from 2022 to 2023 and from 2023 to 2024. pages available for free this week: Balance Sheet: Liabilities and Stockholders’ Equity ; Cash Flow Statement ; Analysis of Solvency Ratios ; Analysis of Long-term (Investment) Activity Ratios ; Analysis of Geographic Areas ; Current Ratio since 2005 ; Debt to Equity since 2005 ; Total Asset Turnover since 2005 ; Price to A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. When analyzing a company, investors and creditors want to see a The term “solvency ratio” refers to the liquidity ratio that measures the ability of a company to pay off its entire liabilities by using the internal cash accrual generated from the business. Profitability Ratio Analysis. 01 19. The WACC stands at 7. As of January 31, 2024, Walmart's ROA stands at 6. Ratio Analyses . 10 & industry 19. Get the latest updates on Walmart Stock financial performance. Ten years of annual and quarterly financial ratios and margins for analysis of Amazon (AMZN). 26 Industry 1. Provide an example and describe how bad debt affects liquidity and solvency ratios. Quick ratio: A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current Walmart Inc. 48 Cash Ratio 0. Adjusted ROE: A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. D/E D/A Cash Ratio Quick Ratio Current Ratio Altman Z-Score A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. • Walmart's organizational strategy is their EDLP (every day low prices). 85 . 02. Our people-first approach using the best technology to power what we do means we’re able to deliver on our purpose and grow our business. 1 Altmetric. equity turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024. Several studies have been conducted worldwide to analyze and measure banks financial performance, examining factors such as profitability ratios, efficiency indicators, solvency ratios, and Working Capital = Current Assets - Current Liabilities 2. The three main liquidity ratios are the current ratio, quick ratio, and cash ratio. Walgreens Boots Alliance Inc. S. Capital structure ratios include debt to equity and debt to asset ratios, and liquidity ratios include coverage ratios and solvency ratios. Fiscal year is February - January. Assess the performance of Walmart (WMT). current ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. Debt Ratio Formula and Calculation . pages available for free this week: Balance Sheet: Liabilities and Stockholders’ Equity ; Cash Flow Statement ; Analysis of Solvency Ratios ; Analysis of Long-term (Investment) Activity Ratios ; Analysis of Geographic Areas ; Current Ratio since 2005 ; Debt to Equity since 2005 ; Total Asset Turnover since 2005 ; Price to Dun & Bradstreet’s Key Business Ratios provides online access to benchmarking data. 4 USD. We take all the information about a company's solvency (such as how easily a company can pay interest on its outstanding debt, how much cash it However, the ratio increased to 3. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. P/BV ratio decreased from 2022 to 2023 and from 2023 to 2024. It used the debt-to-equity ratio that measures the company’s total debt relative to the amount originally invested by the owners and the earnings that have been retained Each ratio value is assigned a score between -2 and +2 depending on its position relative to the quartiles (-2 – below the first quartile; -1 – between the first and the second quartile; +1 – between the second and the third quartile; +2 – above the third quartile; 0 – the ratio value deviates from the median by no more than 5% of the difference between the median and the A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. 3. The gearing ratio gives an indication of solvency. 5% (36) bps 24. Debt-to-Equity Ratio AMAZON. Walmart's inventory turnover is less than the industry average of 1. COM, INC. 2 Short-term solvency . 66 0. Solvency Ratios: These ratios evaluate a company’s long-term financial stability and its ability to meet long-term debts. Each week, over 265 Walmart Inc. Q4 '16. Compute three of the solvency ratios you identified in Part 1 for Walmart 2022 and 2021: 2022. 4102 USD. Examines Target Corp. Discuss Walmart’s solvency ratios. Discuss Walmart’s profitability ratios. D/E D/A See Also. 53%. A 689 400 USD -0. 15 cents of profit for every dollar of assets it holds. The company has an Enterprise Value to EBITDA ratio of 19. As noted above, a company's debt ratio is a measure of the extent of its financial leverage. 13, while Target is less by 0. See how P/FCFE has changed over time and compare its current value with the distribution of P/FCFE across competitors. 61 Debt-to-equity ratio : Walmart Inc. 5 and lower than the US retail industry average of 1. As of 2023 they employed 2. WMT price-to-sales ratio is 1. 1. 52 days compared to an increase in the previous year. Are You Student pursuing courses like CA, CFA,CPA, Exhibit 5. Market cap in millions USD. pages available for free this week: Balance Sheet: Liabilities and Stockholders’ Equity ; Cash Flow Statement ; Analysis of Solvency Ratios ; Analysis of Long-term (Investment) Activity Ratios ; Analysis of Geographic Areas ; Current Ratio since 2005 ; Debt to Equity since 2005 ; Total Asset Turnover since 2005 ; Price to Discuss results of ratios and trends. Inventory Turnover Ratio = Cost of Goods Sold - Average Inventory Solvency ratios: 1. Short-term activity ratio Description The company; Inventory turnover: An activity ratio calculated as cost of goods sold divided by inventory. • Walmart is within acceptable levels for all financial ratios within their area, showing that they aren't misusing funds or debt. Net Fixed Asset Turnover. 23: 0. 7% 30 bps 1 Basis points Its high gross profit margin (46. Ten years of annual and quarterly financial ratios and margins for analysis of Walmart (WMT). Quick ratio: A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current The current ratio of Walmart Inc over the past five years has shown some fluctuations. 43 Industry 1. pages available for free this week: Balance Sheet: Liabilities and Stockholders’ Equity ; Cash Flow Statement ; Analysis of Solvency Ratios ; Analysis of Long-term (Investment) Activity Ratios ; Analysis of Geographic Areas ; Current Ratio since 2005 ; Debt to Equity since 2005 ; Total Asset Turnover since 2005 ; Price to This ratio indicates the company's ability to meet its interest obligations with its earnings before interest and taxes. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024. In other words, it indicates whether the Walmart Inc (NYSE:WMT) EV/EBITDA ratio. Debt-to-Equity Ratio = Total Liabilities - Walmart Inc's return on assets (ROA) has exhibited fluctuations over the past five years. Analysis of the financial position and solvency of the company. 15%, indicating that the company generated 6. cash ratio deteriorated from Q1 2025 to Q2 2025 but then improved from Q2 2025 to Analysis of Solvency Ratios ; Analysis of Long-term (Investment) Activity Ratios ; Analysis of Geographic Areas ; Current Ratio since 2005 ; Walmart Inc. 2 for the 2021 period. Walmart Inc NYSE:WMT Retail US: Verizon Communications Inc NYSE:VZ Telecommunication Add Price Alert Price Target: Last Price: 0. Solvency Ratios: Debt-to-equity ratio, times interest earned ratio, and debt-to-asset ratio will reveal the financial risk and solvency of both companies. Wal-mart Profitability Ratios Gross Margin company 25. Fiscal year is Feb - Jan. Ratio analysis for Walmart . Adjusted ROA Discover the power of seamless financial analysis with ReadyRatios. 1% (540) bps 24. 38) (Walmart, 2018). Walmart Inc (NYSE:WMT) P/FCFE ratio. debt to capital ratio (including operating lease liability) improved from 2022 to Financial ratio analysis is often broken into six different types: profitability, solvency, liquidity, turnover, coverage, and market prospects ratios. (WMT) is performing against its competitors. 63 41. This represents an improvement compared to the previous year, where the ROA was 4. 81. P/E Ratio (TTM) 38. 06) show some difficulty converting their high gross profit into overall company profitability. See how ROCE has changed over time and compare its current value with the distribution of ROCE across competitors. Jan '25 Jan 22, 2025 Dec '23 Dec 31, 2023 The following ratio observed was the time interest earned ratio. public companies with industry averages. Analyzing Walmart Inc's debt-to-equity ratio over the past five years, we observe a generally decreasing trend from 0. By examining key financial ratios such as liquidity Analysis of Solvency Ratios ; Analysis of Long-term (Investment) Activity Ratios ; Analysis of Geographic Areas ; Current Ratio since 2005 ; Walmart Inc. financial statistics and ratios. We'll email Other solvency & liquidity ratios which help to assess the company’s capacity to stay afloat. adjusted financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level. 16 USD. How has the long-term solvency rik of Walmart changed during the three-year period? Profitability and Risk Analysis of Walmart Stores Part A Walmart Stores (Waimart) is the world's largest retailer, It employs an "everyday low price" Financial Analysis of Walmart: The Ratio Analysis Huseyn Gurbanov Abstract (inventory turnover, asset turnover), and solvency ratios (debt-to-equity ratio, interest coverage Target Corp. Long-term Activity . 31) suggests some flexibility for growth. 0. 04 Total Debt/Total Assets 20. Current FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 2019 - A P/B ratio below 1. The ratio was at its lowest point in July 2022 at 0. Compute three profitability ratios you identified above for Walmart for 2022 and 2021: 2022. 14 in 2024 shows a potential improvement in the company's ability to effectively utilize its assets to generate revenue and manage its debt obligations. Measures how efficiently WMT price-to-sales ratio is 1. Summarize Walmart's depreciation policy for property and equipment Part 5: 1. Solvency: Walmart Solvency ratio 2018 2019 2020 Long-term Debt/Equity 10. Debt to assets ratio Solvency Ratios: Understand whether the company you are analyzing is in risk of becoming insolvency. Wal Mart’s revenues have not shown significant increments over the past three years and as a result of this and the operating income that Walmart's D/E ratio is stable at around 0. Operating performance ratios describe the relationship between the Walmart Inc. 17 in January 2023, returned to its level in 2020, and then slightly decreased to 3. The higher the proportion of loan finance, the higher the gearing. 6, conversely to Target's time interest earned being 14. ii) to evaluate the solvency and efficiency ratios of Amazon. d. - Asset utilization ratios, also called activity or efficiency ratios, measure how efficiently the company's day to day operations are managing inventory, selling and producing products, or using assets to generate revenue. 75 times more than its current liabilities. The ratio measures the proportion of the company's debt to its equity, indicating the level of In addition, Walmart’s solvency should be described as appropriate and risks for investors are low because Times Interest Earned is higher than 2. gross profit margin ratio improved from Q1 2025 to Q2 2025 and from Q2 2025 to Q3 2025. Walmart Ratios and Metrics. Provide D/E Ratio for Walmart Inc. Profitability Ratios: Walmart, Apple and Facebook as part of this courses are Not recommendation to invest in such stocks ! Who this course is for: Anyone looking for finance jobs. Instantly generate comprehensive analytical reports, effortlessly analyze balance sheets, and assess key financial indicators. 92 D/A 0. 99 Pre-Tax Margin Company 3. pages available for free this week: Balance Sheet: Liabilities and Stockholders’ Equity ; Cash Flow Statement ; Analysis of Solvency Ratios ; Analysis of Long-term (Investment) Activity Ratios ; Analysis of Geographic Areas ; Current Ratio since 2005 ; Debt to Equity since 2005 ; Total Asset Turnover since 2005 ; Price to 1) The document provides financial and operating data for Walmart, Carrefour, and Target over a three year period to analyze changes in profitability and risk. WMT's Weighted Average Cost of Capital (WACC) is calculated as the weighted average of its cost of equity and cost of debt, adjusted for tax. Online Financial Analysis Solvency Ratios; Debt ratio : 0. 0 Discuss Walmart’s liquidity ratios. 59 in January 2020 to 0. the company is FORD Profitability Liquidity Solvency Short-term Activity. How to Calculate Solvency Ratio. 52 68. Get Walmart Inc. 91 19. 75 which means the company’s currents assets are 2. segment profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to Walmart Inc. 43. Walmart’s quick ratio ended 2017 at . The ratio has consistently been below 0. Walmart Solvency Ratios THE SOLVENCY IS 136. Previous article: Problem-06: Financial Statement Analysis Prev Next article: Problem-04: Financial Analysis of Solvency Ratios . balance sheet, income statement, cash flow, earnings & estimates, Ratios & Margins Walmart Inc. " and, except where expressly noted otherwise or the context otherwise requires, that corporation's consolidated subsidiaries. COMPANY'S SOLVENCY RATIO AND INDUSTRY BENCHMARKS. In simple terms, ROIC shows how many dollars of profit the company makes for each dollar it has invested. Walmart has a relatively low debt-to-equity ratio, indicating that it relies less on debt financing and has a strong financial position to meet its long-term obligations. level of operations and the assets needed to sustain operating activities. 6% (6) bps 21. The cash conversion cycle of Walmart Inc has shown variability over the past five years. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations. Fiscal year is Oct - Sep. Target Corp. Stock Screener. Debt to assets ratio Each ratio family is illustrated with numerous graphs and practical cases, Amazon and Walmart; 12k Accesses. Current FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 2019 - 2015; Period Ending. 45 times greater than its interest expenses in that period. 14 Total Debt/Equity 52. Quarterly trend analysis and comparison to benchmarks of Dollar General solvency ratios such as debt to equity ratio, debt to capital ratio, debt to assets ratio, and financial leverage ratio. 1% (15) bps Effective tax rate3 24. 94 USD. debt to assets ratio (including operating lease liability) improved from 2022 to 2023 and from 2023 to 2024. 65. Walmart Inc 's Current Key Valuation Ratios, PE, PB, PCF, PS, compare to Wholesale Industry and Retail Sector Comparison of Walmart's fundamental ratios for 2 years. Ratios (Price Multiples) Enterprise Walmart Inc. Provide Interest Coverage Ratio Walmart Inc's solvency score is 59/100. Walmart's solvency ratio • Debt-to-equity ratio: 0. A higher ROIC usually means the company is using its money wisely to grow and make more profits, which is a good sign for investors. 75 24. Liquidity Solvency Short-term Activity Long-term Activity . However, a low operating margin ratio (0. Millions. Solvency ratios: 1. Solvency ratios, for example, can be used to analyze “At Walmart, we’re a people-led, tech-powered omnichannel retailer dedicated to helping people save money and live better. adjusted debt-to-capital ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. . How has the long-term solvency risk of Walmart changed during the three-year period Exhibit 4. 94% Berkshire Hathaway Inc NYSE:BRK. 63 interest coverage 10. Analysis of Solvency Ratios ; Analysis of Long-term (Investment) Activity Ratios ; Analysis of Geographic Areas ; Current Ratio since 2005 ; Walmart U. 2021. P/S ratio decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. Compare financial ratios of 10,000 largest U. Profitability ratios: Net Margin (Profit Margin) Walmart Inc (NYSE:WMT) P/B ratio. Liquidity ratios: Solvency ratios: Debt-to-Equity Ratio = Total Liabilities ÷ Stockholders' Equity. HOME Walmart Inc. Current. Efficiency Ratios: Inventory turnover, days sales outstanding, and asset turnover ratios will help assess the efficiency of both companies in managing their assets and operations. 25, while Walmart had a current ratio of 1. Download. The current ratio is 2. Reportable Segments Geographic Areas. 18 vs. 1 Walmart's Profitability ratios Part A of Integrative Case 4. In January 2024, the company's cash conversion cycle decreased to 3. We'll Other solvency & liquidity ratios which help to assess the company’s capacity to stay afloat. 9% (100) bps Return on assets5 NP NP 6. Search Show all solvency ratios for Walmart Inc. Johnson & Johnson NYSE:JNJ 146. Participate in further discussion by commenting on a peer’s discussion post, indicating whether you agree or disagree with the peer's rationale related to how items in accounts receivable affect liquidity and solvency. Discount Rate WMT Gearing ratio. Walmart financials, including financial statements for 2024, basic ratios, Find out how Walmart Inc. Annual Annual Quarterly Quarterly More More. 10. 4% (36) bps Operating expenses as a percentage of net sales2 21. It is the cornerstone of their business, Solvency: Both of the solvency ratios of Wal-mart's are better than Target's so that Wal-mart's is more solvent than Target's . However, in 2021, the organization would more than double its Question: RATIO ANALYSIS: Key conclusions drawn from the company's last 3 years of ratios, as well as a comparison to industry averages and competitors. This indicates that the company has been reducing its reliance on debt financing relative to its total capital structure. 24: 0. Compute three of the solvency ratios you identified in Part 1 for Walmart 2022 and 2021: 2022: 2021: Discuss Walmart's solvency Walmart’s solvency ratios are shown below. Figures - available via license: Creative Commons Attribution-NonCommercial 4. A financial leverage ratio of greater than 1 implies that the company is using more debt than equity to finance its assets. 30 in January 2024. We will now look at some of the key ratios that define the liquidity, profitability, and solvency performance of these two companies. As of Jan 31, 2024, the ratio stands at 0. 1, Part A) 2015 2014 2013 Walmart Each ratio value is assigned a score between -2 and +2 depending on its position relative to the quartiles (-2 – below the first quartile; -1 – between the first and the second quartile; +1 – between the second and the third quartile; +2 – above the third quartile; 0 – the ratio value deviates from the median by no more than 5% of the difference between the median and the The debt-to-equity ratio of Walmart Inc has fluctuated over the periods presented. 10 Citations. Millions USD. 06) and return on assets ratio (0. Walmart Inc NYSE:WMT Retail US: Verizon Communications Inc NYSE:VZ Telecommunication Add Price Alert Price Target: Last Price: 225. 61 Debt-to-equity ratio : Show all solvency ratios for Walmart Inc. Stock Research. 25: 0. Fiscal year is January - December. Oct 31, 2018 Solvency Ratios Debt-To-Equity Ratio Walmart’s inventory turnover ratio for the year was: 2022: $429 billion ÷ [($56. 1 M people. Walmart Inc (NYSE:WMT) ROCE ratio. Fiscal Year. Solvency Ratios (Summary) Debt to Equity; Debt to Equity (including Operating Lease Liability) Debt to Capital Investopedia / Zoe Hansen. operating income as a percentage of net sales decreased from 2022 to 2023 but then Current and historical debt to equity ratio values for Walmart (WMT) over the last 10 years. 31: 0. Analysis of Solvency Ratios ; Analysis of Long-term (Investment) Activity Ratios ; Analysis of Geographic Areas ; Current Ratio since 2005 ; Debt to Equity since 2005 ; Walmart Inc. 1 analyzed the profitability and risk of Walmart Stores for its fiscal years 2018, 2019, solvency ratio. com in relations to those of Walmart Inc. Top Dividend Stocks. key financial stats and ratios. Based on: 10-Q (reporting date: 2024-08-02) Walmart Inc. The debt-to-assets ratio has been relatively stable around 0. 75 for Costco. Annual Data Quarterly Data. i) to evaluate the profitability and liquidity ratios of Amazon. fixed charge coverage ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. Financial Ratios Ratios are important in any type of business, because ratios are sued all the way across the board. The current ratio measures a company's ability to pay off its short- term debts using its current assets. Current ratio: A liquidity ratio calculated as current assets divided by current liabilities. This indicates that Walmart is efficiently managing its cash flow and working capital to convert inventory into cash more quickly. inventory turnover ratio improved from 2022 to 2023 and from 2023 to 2024. Financials Income Statement, Balance Sheet, Cash Flow Statement. 14 Quick Ratio In order to evaluate Target's liquidity relative to Walmart's we can use the current ratio, quick ratio, and cash ratio. total debt increased from 2022 to 2023 and from 2023 to 2024. Liquidity ratio Description The company; Current ratio: A liquidity ratio calculated as current assets divided by current liabilities. Statistics. 43, indicating that the company has a lower level of debt in relation to its equity. 3 Macy's Answer to Walmart's Ratio Analysis Required: Comment on the. 19 78. 37 in January 2020 to 0. Walmart Inc (NYSE:WMT) solvency analysis, financial position, interest coverage, all solvency ratios, and more. Companies most frequently analyzed and tracked by Alpha Spread users. Jan 31, 2020 Find out how Walmart Inc. fixed charge coverage ratio deteriorated from 2016 to 2017 and from 2017 to 2018. DuPont Analysis. debt to capital ratio (including operating lease liability) improved from Q3 2024 to Q4 2024 and from Q4 2024 to Q1 2025. Other non-financial metrics may be scattered ROIC, or Return on Invested Capital, tells you how good a company is at turning its invested money into profits. 22. 20, indicating that Walmart relies more on equity financing rather than debt to finance its assets. Solvency ratio measures a company’s ability to cover its long-term debt obligations. View High Solvency Stocks Full List. 2023 and in the exhibits to this Annual Report on Form 10-K to "Walmart Inc. Q3 bps Δ1 YTD bps Δ1 Gross profit rate 24. 71 Long-term Debit/Capital 26. Consolidated Statements of Income 2021 Fiscal Years Ended January 2020 555,233 3,918 559,151 519,926 4,038 523,964 420,315 116,288 22,548 394,605 108,791 20,568 Related BrainMass Solutions. It provides 14 key business ratios, including solvency ratios, efficiency ratios and profitability ratios for over 800 types of businesses arranged by industry Calculate the following ratios for Walmart and Amazon for two years. View Walmart Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. 3) Part B compares the profitability and risk ratios of the three companies Walmart Inc. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets. PresentationProfitability Ratio. 75 times. Calculate the following ratios for Target Corporation and Walmart for two years (2018 and 2019) Present your calculations in a table. Trend analysis and comparison to benchmarks of Walmart solvency ratios such as debt to equity ratio, debt to capital ratio, debt to assets ratio, financial leverage ratio, and interest coverage ratio. Walmart Inc 's Quick, Working Capital, Debt to Equity, Leverage and Interest Coverage Ratio, Comparisons to Industry Sector and S&P Company Name, Ticker, Customers, else. Liabilities Liabilities are defined as obligations that represent cash outflows, most notably debt, which is the most frequent cause of companies Ratio analysis is a great way to compare two companies that are different in size operations and management style. Current ratio = Current assets/Current liabilities = $1,100,000/$400,000 = 2. 85%. A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. 3% 370 bps Return on investment5 NP NP 13. Enterprise Value to EBIT (EV/EBIT) ratio is a valuation multiple that compares the value of a company, debt included, to the company’s earnings before interest and taxes (EBIT). It also is a great way to quantify how efficient a company’s operations are and how profitable the business is set up to be. Data Source. This table contains core financial ratios such as Price-to-Earnings (), Return-On-Investment (ROI), Earnings per share (EPS), Dividend yield and others The debt-to-capital ratio of Walmart Inc has shown a declining trend over the past five years, decreasing from 0. The company has an Enterprise Value to EBITDA ratio of 18. PART I Costco Ratios and Metrics. Financial Analysis of Walmart's Performance All Industries: Average Industry Financial Ratios for U. As of 2021, Target had a current ratio of 1. 98%) shows it makes a good profit on each product sold and a moderate debt level (debt ratio of 0. inventory turnover ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to ratio compared to Walmart and Target (0. Valuation. Based on the liquidity ratios, Target would survive longer compared to Walmart. Investors also use ratio analysis to gauge a company’s financial health and growth potential for informed investment decisions. Current ratio can be defined as a liquidity ratio that measures a company's ability to pay short-term obligations. 13 27. Key Liquidity and Solvency Ratios. 03 21. Buy print copy. 43 40. Total Walmart shareholders’ equity: Solvency Ratio: Financial leverage 1: Adjusted for Goodwill: Selected Financial Data (US$ in millions) Solvency ratio Description The company; Adjusted financial leverage: A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Based on: 10-K Walmart's Quick Ratio. 37. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' Walmart Inc NYSE:WMT Retail US: Verizon Communications Inc NYSE:VZ Telecommunication Add Price Alert Price Target: Last Price: 259. The interest coverage ratio for Walmart Inc has been relatively stable over the past five years, indicating the company's consistent ability to meet its interest payment obligations. 5 (9. 19 over the Walmart Inc's solvency score is 59/100. Provide D/A Ratio for Walmart Inc. 0 suggests an extreme bargain stock. Overall, the interest coverage ratio for Walmart Inc indicates a generally stable and healthy financial position with the ability to comfortably meet its interest payment obligations. They provide critical insights into the financial stability of a business, acting as a thermometer that gauges a company's fiscal health. The slight decrease in the ratio from 0. Based on the key indicators related to Walmart's liquidity, profitability, solvency, and operating efficiency, Walmart is not in a good financial situation at the moment. 97 Net Profit Margin Company 2. 43 in January 2024, indicating a reduction in dependency on debt financing relative to equity. 12, which suggests a strong asset base relative to its debt obligations at that time. See how P/B has changed over time and compare its current value with the distribution of P/B across competitors. 25 Average Gross Margin company industry 5-year annual average 25. 99. Walmart Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. Reportable Segments Geographic Areas . 9 billion)/2], or about 8. Research Questions The following research questions were set to help ensure the earlier mentioned objectives are achieved: i. If a company's accounts receivable balance is too high in comparison to its current assets, it may be an indication that the company is having difficulty collecting its receivables, which can impact its ability to pay off its short-term debts. Solvency ratios. , debt to equity calculation, comparison to benchmarks. Current Ratio = Current Assets + Current Liabilities 3. 02 Total Debt/Capital 34. 1) 2015 2014 2013 Current ratio Quick ratio Operating cash flow to current liabilities ratio Days accounts receivable outstanding Days inventory held Days accounts payable In addition, evaluating key financial ratios such as profitability, liquidity, and solvency helps finance teams and business leaders assess resource management and progress toward financial goals. It has a very high risk of going through financial straits in January. The main solvency ratios include the debt-to-assets ratio, the interest coverage ratio, Walmart Inc. This ratio varies widely across industries. 12 9:09 CFO/Total Liabilities 22. Walmart's Ratio Analysis Required: Comment on the Walmart's 3-year trends in the following liquidity, solvency, and profitability ratios: Return on Assets. See how EV/EBITDA has changed over time and compare its current value with the distribution of EV/EBITDA across competitors. A higher ratio indicates higher financial risk due to increased debt obligations. Historical FCF from 2006 to 2016. 26: Debt to Assets (including Operating Lease Liability), Sector: Consumer Staples Distribution & Retail A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Last year’s results were strong, and we finished the year with momentum. 80%. ," "Walmart," "the Company," "our Company," "we," "us" and "our" are to the Delaware corporation named "Walmart Inc. debt to assets ratio (including operating lease liability) improved from Q1 2025 to Q2 2025 and from Q2 2025 to Q3 2025. Total Debt (Fair Value) Jan 31, 2024; The data includes return on equity, asset beta, equity beta, WACC, liquidity ratio, profitability ratio and solvency ratio. 86 D/E 0. P/BV ratio: The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Quarterly trend analysis and comparison to benchmarks of Walmart solvency ratios such as debt to equity ratio, debt to capital ratio, debt to assets ratio, and financial leverage ratio. Costco Wholesale Corp. Walmart debt/equity for the three months ending October 31, 2024 was 0. 02 D/E 0. 56 • Leverage ratio: 3. 42 . 2. Compute three of the liquidity ratios you listed above for Walmart for 2022 and 2021: 2022: 2021: Discuss Walmart's liquidity ratios 2. HP Inc. docx. Download Ratio analysis serves as a fundamental tool in evaluating a company's financial health, profitability, liquidity, efficiency, and solvency. 42 Walmart nearly doubles Target’s ratio implying that Walmart is generating almost double the revenue per dollar of asset compared Target. 05 D/E 0. 2 and . Compute selected ratios,and compare liquidity, profitability, and solvency for 2 companies. The debt/equity ratio can be defined as a measure of a company's financial leverage calculated by dividing its long-term debt by stockholders' equity. 3. 2 that Walmart has better long-term solvency. Walmart Inc. 18 in 2020 to 0. Listed Companies Industry: All Industries Measure of center: median (recommended) average Financial ratio Current and historical current ratio for Walmart (WMT) from 2010 to 2024. 5% (1,745) bps Debt to total capitalization4 NP NP 44. Selected financial data of target and walmart for 2001 are presented here in millions. 9 GBX. Solvency ratio Description The company; Adjusted debt-to-capital ratio: A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. All values updated annually at fiscal year end. In the next three years, the organization would maintain a steady quick ratio between the range of . 19 over the past few quarters, suggesting that the company maintains a low level of Trend analysis and comparison to benchmarks of Target solvency ratios such as debt to equity ratio, debt to capital ratio, Walmart Inc. A solvency ratio assesses the long-term viability of a company – namely, if the financial performance of the company appears sustainable and if operations are likely to continue into the future. As of Q2 2022, Walmart's P/B ratio was 4. Walmart current ratio for the three months ending October 31, 2024 was 0. Walmart Inc's interest coverage ratio of 10. 6 34. Home Depot Inc. From this perspective, Walmart’s A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. com in relations to those of Walmart. Solvency ratios are financial metrics that measure a company's ability to meet its long-term debt obligations. 5. 113076 Compute selected ratios,and compare liquidity, profitability, and solvency for 2 companies. 66. 19. 5. The financial leverage ratio of Walmart Inc has shown fluctuations over the past several quarters, ranging from a low of 2. 26 Walmart Risk Ratios (Integrative Case 5. 14 Cash Ratio 0. 71 (higher than the value investor limit), compared to 6. It is normally defined as the ratio of debt (loans from all sources including debentures, term loans and overdraft) to total finance (which includes shareholders' capital, reserves, long-term debt and overdraft). 5 billion + $44. 38. This suggests that Walmart relies more on equity financing rather than debt to fund its operations and growth. 30) and Costco earns robust cash flow during the . 43 Walmart Stores Operating Data (Integrative Case 4. In Jan 31, 2024, Walmart Inc had a current ratio of 0. Jan '25 Jan 21, 2025 Sep '24 Sep 1, 2024 Walmart Inc NYSE:WMT Retail US: Verizon Communications Inc NYSE:VZ Telecommunication Add Price Alert Price Target: Last Price: 737. 69 Long-term Debt/Total Assets 16. The Debt-to-Equity Ratio and Interest Coverage Ratio are typical examples. Walmart had a time interest earned of 11. 30 11. Relative Valuation . 91: Find out how Walmart Inc. zfgst frlt bixqax ulz stewnr faqls omnr omlgleo cohev iftnor