Walmart Inc. (NYSE:WMT)

Debt to Equity

The debt to equity ratio shows a general downward trend from 0.73 in 2020 to 0.5 in 2025, indicating a gradual reduction in reliance on debt relative to shareholder equity. The ratio decreased steadily from 2020 to 2022, then fluctuated slightly before continuing its decline.

Debt to Equity (Including Operating Lease Liability)

This ratio also exhibits a declining trend from 0.97 in 2020 to 0.66 in 2025. Despite some fluctuations, the overall decrease suggests that when including operating lease liabilities, the company's financial leverage related to equity is reducing over time but remains higher than the traditional debt to equity ratio.

Debt to Capital

The debt to capital ratio decreased from 0.42 in 2020 to 0.33 in 2025. This steady decline implies that the portion of total capital financed through debt is progressively lowering, reflecting a conservative capital structure development.

Debt to Capital (Including Operating Lease Liability)

This metric follows a similar downward trajectory, moving from 0.49 to 0.40 over the same period. The inclusion of lease liabilities highlights a slightly higher leverage level but with consistent improvement in debt management.

Debt to Assets

The ratio decreased from 0.23 in 2020 to about 0.18 in 2025 with minor fluctuations, indicating a reduction in the proportion of assets financed by debt. The movement signals enhanced asset financing through equity or retained earnings.

Debt to Assets (Including Operating Lease Liability)

Initially at 0.31 in 2020, this ratio declined to 0.23 in 2025, mirroring the trend observed without lease liabilities but at a consistently higher level. This reflects that lease obligations contribute to the total debt burden but the overall debt coverage of assets improved over time.

Financial Leverage

The financial leverage ratio exhibits minor oscillations, starting at 3.17 in 2020, dipping to 2.94 in 2022, rising back to 3.17 in 2023, then decreasing to 2.87 by 2025. This suggests some variability in the use of debt relative to equity but overall a slight reduction in leverage.

Interest Coverage

The interest coverage ratio increased from 8.74 in 2020 to 10.64 in 2025, with some fluctuations in interim years. This improvement indicates enhanced ability to cover interest expenses from operating earnings, reflecting stronger operational cash flow and/or lower interest expenses.

Fixed Charge Coverage

This ratio similarly improved from 4.82 in 2020 to 6.18 in 2025, with intermittent dips. The upward trend points to increased capacity to meet fixed financial obligations, further validating improving financial health and earnings stability.

Total Debt

The total debt exhibits a decreasing trend from 54,469 million USD in January 2020 to 42,831 million USD in January 2022, indicating a reduction in liabilities over this period. A slight increase is observed thereafter, peaking at 46,891 million USD in January 2024, followed by a minor decline to 45,790 million USD in January 2025. Overall, total debt remained below the initial 2020 levels during the latter years.

Total Walmart Shareholders' Equity

Shareholders' equity demonstrated a consistent upward trajectory throughout the period, starting at 74,669 million USD in January 2020 and rising steadily to reach 91,013 million USD by January 2025. This increase reflects an accumulation of retained earnings and possibly other equity enhancements, suggesting financial strengthening.

Debt to Equity Ratio

The debt to equity ratio declined significantly from 0.73 in January 2020 to 0.51 in January 2022, indicating an improving capital structure with relatively less reliance on debt financing. The ratio slightly increased in January 2023 to 0.58, then decreased again to 0.50 by January 2025. This ratio trend aligns with the patterns observed in total debt and equity, reflecting the company's efforts to maintain a balanced leverage position with a gradual emphasis on equity financing.

The annual financial data reveals a gradual decline in total debt over the analyzed period, decreasing from approximately $72.4 billion in early 2020 to about $60.1 billion by early 2025. This downward trend indicates a consistent reduction in liabilities, albeit with a slight increase in 2023 and 2024 compared to the prior year. Concurrently, shareholders’ equity exhibits an overall upward trajectory, growing from $74.7 billion in 2020 to $91.0 billion in 2025, suggesting increasing retained earnings or capital contributions over time, despite a minor dip observed in 2023.

The debt to equity ratio, incorporating operating lease liabilities, demonstrates a steady decrease from 0.97 in 2020 to 0.66 in 2025. This decline signifies an improving capital structure, where equity increasingly finances the company’s operations relative to debt. The ratio initially drops sharply between 2020 and 2022, reflects a slight rebound in 2023, and then continues to decrease through 2025, reinforcing the trend towards lower financial leverage.

Total Debt

Observed a steady reduction overall, with a peak at $72.4 billion in 2020 diminishing to just over $60 billion by 2025. The decrease is consistent but modestly interrupted by increases in 2023 and 2024.

Shareholders’ Equity

Exhibited continual growth across the period, rising from nearly $74.7 billion to $91 billion, signifying robust equity base expansion. The slight equity decline in 2023 did not derail the general ascending pattern.

Debt to Equity Ratio

Demonstrates progressive improvement in financial leverage, descending from 0.97 to 0.66, indicating enhanced financial stability and a shift toward equity financing. Minor fluctuations occur but do not negate the overall positive trend.

Overall, the financial data implies effective debt management strategies and strengthening equity positions. The company appears to be reducing reliance on debt while bolstering shareholder value, which may suggest improved financial health and lower risk exposure over the evaluated timeframe.

The analysis of the financial data over the reported periods reveals several notable trends in the company's capital structure and debt levels.

Total Debt

The total debt amount demonstrates a generally decreasing trend between January 31, 2020, and January 31, 2022, declining from 54,469 million USD to 42,831 million USD. However, this trend reverses slightly in the following periods, with debt increasing to 46,622 million USD in 2023 and 46,891 million USD in 2024, before marginally decreasing again to 45,790 million USD in 2025. This fluctuation suggests an initial reduction in leverage followed by moderate increases and eventual stabilization.

Total Capital

Total capital exhibits a relatively stable pattern with minor fluctuations during the period. Starting at 129,138 million USD in 2020, the figure peaks slightly to 129,796 million USD in 2021, followed by a dip to 126,084 million USD in 2022 and a more pronounced decline to 121,315 million USD in 2023. Subsequently, total capital rebounds strongly to 130,752 million USD in 2024 and continues to increase to 136,803 million USD in 2025. This oscillation indicates a period of contraction in capital followed by significant growth in later years.

Debt to Capital Ratio

The debt to capital ratio reflects the proportion of debt financing relative to total capital. The ratio decreases from 0.42 in 2020 to 0.34 by 2022, indicating a reduction in leverage during this initial phase. After this, the ratio experiences a mild increase to 0.37 in 2023 and then a gradual decrease to 0.36 in 2024 and further down to 0.33 in 2025. This pattern suggests an overall conservative approach to debt management with an emphasis on lowering debt reliance relative to capital over the entire span.

In summary, the company appears to have reduced its reliance on debt between 2020 and 2022, coinciding with a slight contraction in total capital. Thereafter, capital levels rose substantially, and debt amounts fluctuated around a slightly elevated base compared to the trough in 2022, yet the relative leverage as measured by the debt to capital ratio continued to decline gradually through 2025. This implies a strengthening capital base and cautious debt management consistent with enhancing financial stability over the reported period.

Total Debt (Including Operating Lease Liability)

The total debt shows a declining trend from January 31, 2020, to January 31, 2022, decreasing from $72,433 million to $57,323 million. Subsequently, there is a moderate increase observed in the debt levels in 2023 and 2024, reaching $61,321 million, followed by a slight decline in 2025 to $60,114 million. This pattern indicates an initial reduction in debt levels, followed by a stabilization with minor fluctuations in the last three years.

Total Capital (Including Operating Lease Liability)

Total capital experienced a gradual decrease from $147,102 million in 2020 to $135,616 million in 2023. However, in the subsequent two years, there is an upward reversal with capital increasing to $145,182 million in 2024 and further to $151,127 million in 2025. This trend suggests an initial contraction in total capital followed by a recovery and expansion in the latter part of the period analyzed.

Debt to Capital Ratio (Including Operating Lease Liability)

The debt to capital ratio demonstrates a consistent downward trend from 0.49 in 2020 to 0.41 in 2022. Although there is a slight increase to 0.43 in 2023, the ratio declines again to 0.40 by 2025. Overall, this indicates an improving leverage position, with the company progressively reducing the proportion of debt relative to its total capital over the years, reflecting a strengthening balance sheet.

Total debt

The total debt shows a general declining trend from January 31, 2020, to January 31, 2025. Initially, debt decreased significantly from $54,469 million to $42,831 million by January 31, 2022. Subsequently, there was a modest increase in debt standing at $46,891 million in 2024 before slightly decreasing again to $45,790 million in 2025. Overall, the total debt remains lower compared to the 2020 level, indicating an effort to reduce liabilities.

Total assets

Total assets exhibited an overall increasing pattern over the analyzed period. Starting at $236,495 million in January 31, 2020, assets peaked in 2021 at $252,496 million, followed by a slight decline in 2022 and 2023 to around $243,000 million. There was a recovery in 2024 and 2025 with assets reaching the highest point of $260,823 million in 2025. This demonstrates continued growth in asset base despite some fluctuations.

Debt to assets ratio

The debt to assets ratio declined markedly from 0.23 in 2020 to a low of 0.17 in 2022, reflecting improved solvency and a reduced reliance on debt for financing assets. In the subsequent years, the ratio increased slightly to 0.19 in 2024, before decreasing again to 0.18 by 2025. The ratio remains below the initial level in 2020, suggesting that asset growth has outpaced debt accumulation, maintaining a relatively low leverage level.

The financial data reveals noteworthy trends over the analyzed periods concerning the company's debt, assets, and leverage position.

Total Debt (Including Operating Lease Liability)

There is a general downward trajectory in total debt from January 31, 2020, to January 31, 2025. Debt decreased from approximately 72.4 billion US dollars in early 2020 to around 60.1 billion US dollars by early 2025. This suggests a conscious effort to reduce leverage, despite some fluctuations observed between 2022 and 2024, where debt slightly increased after the sharp initial decrease.

Total Assets

Total assets show an overall upward trend during the same timeframe, increasing from about 236.5 billion US dollars in 2020 to roughly 260.8 billion US dollars by 2025. Although there is a modest dip between 2021 and 2023, the asset base recovers and reaches its highest point at the end of the period, indicating asset growth and possibly expansion or reinvestment initiatives.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio demonstrates a consistent decline, moving from 0.31 in 2020 to 0.23 by 2025. This decreasing ratio indicates an improvement in the financial leverage position of the company, reflecting either debt reduction, asset growth, or a combination of both. It implies enhanced balance sheet strength and potentially lower financial risk over the observed years.

Overall, the data suggest the company has been managing its debt levels prudently while growing its asset base, leading to a more favorable leverage ratio by the end of the period.

The financial data presents a multi-year overview of key balance sheet items and financial leverage ratios, highlighting several noteworthy trends and changes.

Total Assets

Total assets showed a general upward trajectory over the six-year period, increasing from approximately 236.5 billion US dollars in early 2020 to about 260.8 billion US dollars by early 2025. Although there was a slight decrease in total assets in early 2022 and early 2023 compared to the previous years, the overall trend resumed its upward momentum afterward, suggesting steady asset growth.

Total Walmart Shareholders’ Equity

Shareholders’ equity exhibited consistent growth across most years, rising from roughly 74.7 billion US dollars in 2020 to over 91 billion US dollars by 2025. A notable dip occurred in early 2023 when equity decreased to approximately 76.7 billion US dollars from the prior year’s 83.3 billion. The decline interrupts an otherwise upward trajectory but is followed by a strong recovery in subsequent years.

Financial Leverage Ratio

The financial leverage ratio demonstrated some variability, generally trending downward from 3.17 in 2020 to a low point of 2.87 in 2025. There was a brief rise back to 3.17 in early 2023, coinciding with the dip in shareholders’ equity, after which the ratio continued its decline. This trend indicates a gradual reduction in the company’s reliance on debt relative to equity, with a temporary reversal during the period when equity decreased.

In summary, the data reveals growth in both assets and equity over the period examined, though equity experienced a temporary setback in 2023. The overall decline in financial leverage suggests improving financial stability and a modest reduction in leverage risk, despite short-term fluctuations.

The financial data demonstrates notable trends in earnings before interest and tax (EBIT), interest expenses, and interest coverage over the period from January 31, 2020, to January 31, 2025.

Earnings before interest and tax (EBIT)

EBIT shows some fluctuations over the examined years. Initially, there was a slight increase from $22,715 million in 2020 to $22,879 million in 2021. However, this was followed by a decline to $20,690 million in 2022 and further to $19,144 million in 2023. Starting in 2024, EBIT experienced a considerable recovery, rising sharply to $24,531 million, and this upward trend continued into 2025, reaching $29,037 million. This suggests the company managed to reverse the downward trend after 2023 with strong earnings growth afterward.

Interest expense, debt and finance lease

Interest expenses decreased steadily from $2,599 million in 2020 through $2,315 million in 2021 and $1,994 million in 2022. However, this trend reversed slightly in subsequent years, increasing to $2,128 million in 2023, then higher to $2,683 million in 2024 and $2,728 million in 2025. This increase in interest expenses after 2022 may be attributed to higher debt levels or increased borrowing costs.

Interest coverage ratio

The interest coverage ratio indicates the firm's ability to meet interest obligations through operating earnings. The ratio improved from 8.74 in 2020 to a peak of 10.38 in 2022, reflecting strong earnings relative to interest expenses. It then declined to 9 in 2023 and slightly recovered to 9.14 in 2024. By 2025, the ratio increased further to 10.64, which is the highest ratio in the period. This suggests that despite the fluctuations in EBIT and interest expenses, the company's capacity to cover interest charges has generally remained strong and improved in the most recent year.

Overall, the earnings experienced an initial downturn followed by a robust recovery starting in 2024, whereas interest expenses showed an initial downward trend before increasing again. The interest coverage ratio remained healthy throughout the period, indicating sustained ability to service debt, with a notable improvement in the latest recorded year.

The analysis of the financial metrics over the periods ending January 31 from 2020 to 2025 reveals meaningful trends in earnings, fixed charges, and coverage ratios.

Earnings before Fixed Charges and Tax

This metric shows a decline from 25,385 million USD in 2020 to 21,450 million USD in 2023, indicating diminishing earnings within this timeframe. Subsequently, there is a notable recovery with an increase to 26,808 million USD in 2024 and further growth to 31,384 million USD in 2025, suggesting a strong rebound and improvement in operating profitability.

Fixed Charges

Fixed charges decrease from 5,269 million USD in 2020 to a low of 4,268 million USD in 2022. After this lowest point, fixed charges rise gradually again, reaching 5,075 million USD by 2025. This pattern implies initial cost control or reduction in fixed obligations followed by a moderate increase in fixed expenses in the later years.

Fixed Charge Coverage Ratio

The fixed charge coverage ratio increased from 4.82 in 2020 to 5.38 in 2022, suggesting an improvement in the company's ability to cover fixed charges with earnings. Although there is a dip to 4.84 in 2023, the ratio recovers strongly afterward, rising to 5.4 in 2024 and reaching 6.18 by 2025. This enhanced coverage reflects strengthening financial stability and better capacity to meet fixed financial obligations over the long term.

Overall, the data indicates that despite a temporary decline in earnings and fixed charge coverage during the first half of the period, there is a clear upward trend towards improved earnings capacity, moderated fixed charges, and stronger fixed charge coverage in the last two reported years. This pattern suggests enhanced operational profitability and financial resilience as the timeline progresses.