Walmart (WMT) Financial Strength (2024)

FAQs

Walmart (WMT) Financial Strength? ›

Walmart has a total shareholder equity of $90.8B and total debt of $41.9B, which brings its debt-to-equity ratio to 46.2%. Its total assets and total liabilities are $254.4B and $163.7B respectively. Walmart's EBIT is $28.3B making its interest coverage ratio 12.6. It has cash and short-term investments of $8.8B.

The Rating Outlook is Stable. Walmart's ratings reflect its dominant global retail market share position, with nearly $650 billion of revenue in 2023, positive comparable store sales (comps), and consistent financial strategy, which has resulted in stable EBITDAR leverage around 2x.

Walmart has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors: 1. The debt burden that the company has as measured by its Interest Coverage (current year).

Walmart annual gross profit for 2024 was $157.983B, a 7.06% increase from 2023. Walmart annual gross profit for 2023 was $147.568B, a 2.65% increase from 2022. Walmart annual gross profit for 2022 was $143.754B, a 3.54% increase from 2021.

Walmart has a low net debt to EBITDA ratio of only 0.90. And its EBIT covers its interest expense a whopping 12.7 times over. So we're pretty relaxed about its super-conservative use of debt.

The company's net margin has been negatively impacted by higher operating expenses, leading to a decline in its ROE over time. Walmart's inventory turnover ratio may also have a significant impact on its short-term stock performance and total asset turnover ratio, which has remained stable over the years.

Walmart (WMT) reported another solid quarter as its business proved resilient against discerning consumers and sticky inflation. In Q2, revenue grew 4.8% to $169.34 billion, compared to the $168.46 billion expected. Adjusted earnings also beat estimates at $0.67 per share, a 9.8% year-over-year increase.

Weakness - Decline in Liquidity Position

Limited cash and liquidity put the company at a disadvantage when funding any potential opportunities in the market. Walmart reported a current ratio of 0.8 at the end of FY2023. This suggests that the company's inability to meet its short-term obligations.

In summary, Walmart has a more consistent financial performance than Amazon, with steadier profitability despite Amazon having a stronger cash flow position in 2023, but also has a higher debt load.

Who owns the most WMT stock? ›

Jim Walton owns the most shares of Walmart (WMT).

Total debt on the balance sheet as of July 2024 : $61.30 B

According to Walmart's latest financial reports the company's total debt is $61.30 B. A company's total debt is the sum of all current and non-current debts.

It is a publicly traded family-owned business, as the company is controlled by the Walton family. Sam Walton's heirs own over 50 percent of Walmart through both their holding company Walton Enterprises and their individual holdings.

The highest analyst price target is $81.00 ,the lowest forecast is $66.00. The average price target represents 6.46% Increase from the current price of $69.61. What do analysts say about Walmart? Walmart's analyst rating consensus is a Strong Buy.

In the fiscal year ended January 31, 2024, Walmart's revenue amounted to approximately 648 billion U.S. dollars worldwide. Compared to a year earlier, the retailer's revenue increased by six percent. Walmart, formerly known as Wal-Mart Stores, Inc., is one of the most well-known and valuable brands in the world.

It is calculated as a company's Long-Term Debt & Capital Lease Obligationdivide by its Total Assets. Walmart's long-term debt to total assests ratio for the quarter that ended in Jul. 2024 was 0.21.

The presence of a Walmart store can hurt the business of smaller companies and lower wages for local workers. Much of the Walmart Effect can be attributed to Walmart's immense buying power. The Walmart Effect can also affect suppliers, who must drive their production costs down in order to afford to sell to Walmart.

With larger store sizes and the potential for higher stress levels in managing both customers and employees, the workload for Walmart store managers may be more demanding, contributing to higher turnover rates.