Walmart Inc. (NYSE:WMT)

Debt to Equity

This ratio exhibits a fluctuating yet generally downward trend over the extended period. Starting at 0.85, it declined to a low near 0.50 by early 2025, indicating a gradual reduction in reliance on debt relative to equity. Periodic increases, such as around April 2022 and October 2023, suggest intermittent increases in leverage, but the overall direction points to strengthening equity support.

Debt to Equity (Including Operating Lease Liability)

Including operating lease liabilities results in higher ratios compared to traditional debt-to-equity measures. The values follow a similar declining pattern but always remain above the basic debt to equity ratio by approximately 0.2 to 0.3. This indicates operating leases form a significant portion of total liabilities. There are periodic rises suggesting temporary increases in lease obligations, particularly noticeable around April 2022 and October 2023 periods.

Debt to Capital

The debt to capital ratio mirrors the debt-to-equity trend, starting at 0.46 and trending downward to approximately 0.33 by early 2025. Small oscillations are present but do not change the underlying downward momentum, indicating increased capital structure stability with a lower debt proportion in total capital.

Debt to Capital (Including Operating Lease Liability)

Similar to its counterpart excluding leases, this ratio remains consistently higher, reflecting the added burden of lease liabilities. The trend moves downward overall but with noticeable spikes around mid-2022 and late 2023, consistent with observed lease-related debt trends. The ratio stabilizes in the low 0.4 range towards 2025.

Debt to Assets

The ratio shows a slight but consistent decline from 0.25 to about 0.18 through the period. This suggests a modest reduction in the proportion of assets financed through debt, pointing toward a more conservative asset financing posture. There are minor increases observed mid-term, but these are temporary.

Debt to Assets (Including Operating Lease Liability)

This ratio, which accounts for operating lease obligations, is uniformly higher than the basic debt to assets ratio. It follows a similar downward pattern, slipping from 0.32 to around 0.24 in the latest quarters, indicating gradual improvement in asset financing risk with lease liabilities considered.

Financial Leverage

Financial leverage, measuring the multiplier effect of equity, hovers between 2.87 and 3.43 peaks during the period. Although it shows some volatility, from a low around 2.87 to highs above 3.4, the general pattern indicates relative stability without a marked trend upwards or downwards. This implies balanced use of equity and debt financing.

Interest Coverage

The interest coverage ratio displays a generally stable and robust level of coverage, mostly above 8 and frequently above 10. This suggests the company's earnings provide a strong cushion for meeting interest obligations. Occasional dips, such as in late 2021, were quickly followed by recoveries, indicating resilience in earnings sufficient to cover interest expenses.

Total Debt

The total debt exhibited a declining trend from April 2020 (US$58,034 million) to January 2022 (US$42,831 million), indicating a period of deleveraging. However, this was followed by fluctuations with periodic increases and decreases observed from April 2022 through October 2025. Notably, peaks occurred around October 2023 (US$55,448 million) and April 2025 (US$52,869 million), while troughs were recorded in January 2022 and January 2025 (US$42,831 million and US$45,790 million respectively). Overall, the debt level remained somewhat variable but did not return to the high levels of early 2020.

Total Shareholders’ Equity

Shareholders' equity demonstrated a generally upward movement over the entire period under review. Beginning at US$68,240 million in April 2020, equity increased steadily, reaching a value of US$96,094 million by October 2025. Several upward inflections are evident, including marked rises after January 2023 and mid-2024, indicating stronger capital base growth. Minor declines observed in certain quarters did not significantly impact the long-term positive trajectory.

Debt to Equity Ratio

The debt to equity ratio declined from 0.85 in April 2020 to a low of approximately 0.50 by April 2025, evidencing an improvement in financial leverage and a stronger equity buffer relative to debt. Despite some oscillations, including peaks around October 2022 (0.71) and October 2023 (0.70), the overall trend reflects a reduction in reliance on debt financing relative to equity. The ratios in the final periods indicate a relatively stable leverage position, maintaining a range close to 0.55.

Summary Insights

The financial data reveals a company managing its debt carefully while strengthening its equity base. Early reductions in total debt combined with consistent increases in shareholders’ equity contributed to a declining debt-to-equity ratio, highlighting improved financial stability. Although the debt levels fluctuate in later periods, the company appears to maintain a balanced capital structure. The continuous rise in equity suggests effective retention of earnings or capital raises, which may support future strategic initiatives. Overall, the company maintains a solid financial position throughout the reported timeframe.

The analyzed financial data reveals distinct trends in debt, equity, and leverage ratios over the observed periods.

Total Debt (including operating lease liability)

Total debt exhibits fluctuations throughout the periods without a consistent upward or downward trend. Initially, there is a noticeable decline from approximately 75.4 billion USD to around 57.3 billion USD between April 2020 and January 2022. Following this, debt rises again, reaching peaks near 69.7 billion USD by October 2023 before experiencing another decline towards early 2025. These movements suggest periodic adjustments in debt levels, possibly reflecting strategic financing decisions or changes in operational needs.

Total Walmart Shareholders’ Equity

The shareholders' equity demonstrates a generally stable to slightly increasing trend over the period. Beginning near 68.2 billion USD in April 2020, equity rises steadily with minor fluctuations, reaching a high of approximately 91.0 billion USD by April 2025. This gradual increase indicates consistent value accumulation or retention of earnings, contributing to a stronger equity base over time.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio follows a declining pattern from 1.11 in April 2020 to values as low as 0.66 by April 2025, signifying an overall reduction in financial leverage. The ratio decreases notably during the first several periods, improving from above 1 to below 0.8 by early 2022. Although there are intermittent rises afterward, the ratio remains generally below 1, suggesting a relatively conservative capital structure with more equity financing relative to debt. Periodic increases in the ratio align with observed upticks in debt, but the prevailing trend reflects improved leverage management.

In summary, the data indicates a strategic balancing act over time, with debt levels managed prudently against a backdrop of gradual equity growth. The resulting lower debt to equity ratios may enhance financial stability and flexibility, providing a buffer against risk while maintaining access to capital markets. The fluctuations in debt highlight responsiveness to operational or market conditions, while the strengthening equity base supports sustainable long-term financial health.

The analysis of the quarterly financial data over the examined periods reveals several notable trends in the leverage and capital structure of the company.

Total Debt

Total debt shows a fluctuating pattern with a peak of approximately 58 billion US dollars in April 2020 followed by a general decline until January 2022, reaching a low around 42.8 billion. From there, debt levels increase again, oscillating between roughly 44.6 billion and 55.4 billion in subsequent quarters. This indicates cycles of debt repayment and new borrowing.

Total Capital

Total capital remains relatively stable across the time frame, with values generally ranging between 121 billion and 149 billion US dollars. There is a mild upward trend from early 2023 onward, reaching the highest recorded value near 149 billion in October 2025. Variations throughout the periods are minor relative to the overall capital base, signaling consistent capital availability for operational or strategic initiatives.

Debt to Capital Ratio

The debt to capital ratio demonstrates a consistent pattern of moderate leverage. Initially around 0.46 in April 2020, it drops substantially to as low as 0.33 by April 2025, indicating a gradual reduction in relative debt burden over time. However, intermittent increases are observed, especially peaking back to 0.42 in October 2022 and again around 0.41 in October 2023. Such fluctuations suggest management adjustments to the debt profile balancing growth, risk, and liquidity.

Overall, the data suggests a strategic approach to debt management, with efforts to reduce leverage over the five-year span despite intermittent rises. The relatively stable total capital base coupled with shifting debt levels implies a focus on maintaining financial flexibility and controlling debt costs. These trends signify prudent financial management and responsiveness to changing market or operational conditions.

The analysis of the quarterly financial data reveals the following trends and insights:

Total Debt (including operating lease liability)

The total debt fluctuates over the observed periods, starting at approximately 75.4 billion USD and showing a general decline until early 2022, reaching around 57.3 billion USD. Subsequently, the debt levels increase again, peaking at about 69.7 billion USD in the latter part of 2023 before declining towards 61.3 billion USD in early 2024. There is notable volatility in debt values with alternating periods of reduction and increase over the time frame.

Total Capital (including operating lease liability)

Total capital values hover in a range between roughly 135 billion USD and 165 billion USD. Initially, total capital lies near 144 billion USD and experiences moderate fluctuations, with a downward trend observed around 2022. From mid-2023 forward, the total capital demonstrates a rising trajectory, culminating in a peak near 164.5 billion USD by late 2025. This suggests ongoing growth in the capital base in the more recent periods.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio exhibits a predominantly declining trend from an initial 0.53 down to 0.41 by early 2022, indicating an improving capital structure with relatively less reliance on debt. Post-2022, the ratio oscillates mostly between 0.40 and 0.48, showing phases of both increasing and decreasing leverage without a clear directional momentum. In the latest quarters, the ratio stabilizes around 0.42, implying a moderate and consistent leverage position in relation to the company’s total capital.

Overall, the data indicates that the entity has engaged in debt reduction efforts until 2022, followed by renewed borrowing activity. Total capital has shown positive growth especially in recent quarters. The leverage ratio has generally improved compared to the start of the period, though it exhibits variability in the latter half of the observed timeframe, suggesting adaptive financial management in response to changing conditions.

Total Debt

Total debt displayed a gradual decline from April 2020 through January 2022, decreasing from approximately $58 billion to about $42.8 billion. Following this period, the debt level oscillated, rising sharply again to around $52 billion by April 2022, then experiencing fluctuations without a clear directional trend. Notably, there was an increase peaking near $55.4 billion in October 2023, followed by a reduction and subsequent variations. Overall, debt levels show periodic rises and falls, with no sustained long-term increase or decrease across the entire timeframe.

Total Assets

Total assets generally increased over the observed period, beginning near $233 billion in April 2020 and trending upward to roughly $289 billion by October 2025. While the growth was mostly steady, some quarters showed slight decreases or plateaus, such as the dip between January and April 2021 and a minor decline around January 2023. However, the overall trajectory indicates asset expansion of approximately 24% over five years.

Debt to Assets Ratio

The debt to assets ratio demonstrated a downward trend from 0.25 in April 2020 to a low near 0.17 in January 2022, reflecting reduced leverage relative to asset base. Afterward, the ratio fluctuated between approximately 0.18 and 0.21, showing intermittent increases in leverage but remaining below early 2020 levels. This pattern suggests improved financial stability initially, followed by moderate volatility in leverage, yet maintaining a relatively conservative balance sheet position across the timeframe.

Summary Insights

The data reveal a general strengthening of the asset base alongside a fluctuating but not markedly increasing debt level, resulting in a net improvement in leverage ratios during the early quarters. Despite some volatility in both debt and ratios in subsequent periods, the company maintained a relatively stable capital structure. The trends suggest prudent debt management amid asset growth, although the periodic variability indicates responsiveness to operational or financing conditions rather than a fixed strategic shift.

The financial data over the analyzed periods indicate discernible trends in the company's leverage and asset base. Total debt, including operating lease liability, exhibits fluctuations throughout the timeline. Initially, debt levels show a decreasing pattern from approximately 75.4 billion USD to a trough near 57.3 billion USD within early 2022, followed by a resurgence reaching as high as nearly 69.7 billion USD towards late 2023. Subsequent periods depict moderate oscillations with debt settling around the 60 to 68 billion USD range towards the end of the series.

Total assets demonstrate a steady upward trajectory. Starting from approximately 232.9 billion USD, assets grow consistently with minor fluctuations, reaching approximately 288.7 billion USD by the final reported period. This upward movement reflects an expansion of the company's asset base over the examined intervals.

The debt to assets ratio reflects the relationship between total debt and total assets, revealing overall leverage trends. The ratio starts at 0.32 and declines notably to around 0.23 by early 2022, indicating a reduction in leverage relative to asset size. Though some variability occurs thereafter, the ratio generally remains between 0.23 and 0.27, suggesting a stable leverage profile with only moderate shifts. The downward trend in the earlier periods, coupled with the rise in assets, suggests a relatively conservative capital structure evolution during that phase.

Total Debt

Shows an initial decline followed by an increase and subsequent moderate fluctuations, indicating active debt management and varying financing needs.

Total Assets

Consistent growth across time points to asset accumulation and overall expansion of the company's asset base.

Debt to Assets Ratio

Generally declines over the early periods, pointing to improved asset coverage of debt, then stabilizes within a moderate range, reflecting maintained leverage discipline.

Overall, the data suggests a strategic approach balancing growth in assets with controlled leverage, adapting to changing capital requirements while maintaining financial stability.

Total Assets

Total assets demonstrate a general upward trend over the observed periods. Starting at approximately $232.9 billion, the assets experienced gradual increases with some fluctuations, reaching around $288.7 billion by the latest reported period. Notably, there is a steady increase evident from early 2023 onwards, indicating ongoing asset growth. Some periods show minor declines or plateaus, but the overall direction remains positive.

Total Walmart Shareholders’ Equity

Shareholders’ equity displays more variability compared to total assets. Initially rising from approximately $68.2 billion to a peak near $83.3 billion, there are intermittent declines, particularly notable around early to mid-2022, when equity dropped below $73 billion. However, from mid-2022 forward, equity resumes growth, reaching above $96 billion in the latest period, suggesting recovery and strengthening of the company’s net asset position. These fluctuations may reflect changes in retained earnings, dividends, or other equity components.

Financial Leverage

The financial leverage ratio, defined as the ratio of total assets to shareholders’ equity, indicates the extent of debt financing relative to equity. This ratio begins relatively high at 3.41, then experiences a downward trend, reaching lows near 2.87, suggesting periods of reduced leverage and potentially lower financial risk. However, leverage fluctuates moderately throughout the timeline, oscillating mostly between 3.0 and 3.4. The recent periods show a slight decline, ending close to 3.0, which may reflect improved equity growth relative to assets or adjustments in debt levels. Overall, leverage remains stable with modest variation, indicating a consistent approach to capital structure management.

The analysis of the financial performance over multiple quarters indicates notable fluctuations in earnings before interest and tax (EBIT). Initially, the EBIT exhibited a general upward trend, reaching a peak in the July 2020 quarter. This was followed by a sharp decline to a negative EBIT in January 2021, reflecting a substantial operational challenge during that period. Subsequently, EBIT recovered with variable performance, showing periodic increases and decreases without a consistent upward or downward trend. The variability continued through to October 2025, where EBIT values suggest volatility in operational earnings, possibly affected by external market conditions or internal business factors.

Interest expense related to debt and finance leases remained relatively stable throughout the periods analyzed. Minor fluctuations are present but within a narrow range, indicating consistent debt servicing costs. The absence of any extreme spikes suggests prudent financial management in terms of interest-bearing liabilities, although the steady slight increase toward later periods may warrant monitoring.

The interest coverage ratio, which measures the company's ability to meet interest obligations from operating earnings, demonstrates a generally strong capacity. Most quarters report a ratio well above 7, with peaks near or above 11, implying comfortable coverage levels. Notably, the ratio dipped somewhat in quarters corresponding to lower EBIT, but the overall trend remains robust. This consistent ability to cover interest expenses indicates that the company maintains sound financial health despite EBIT volatility.

EBIT Trends:

Initial increase followed by sharp negative dip and recovery phases, with continued volatility and no sustained trend in recent quarters.

Interest Expense:

Stable with minor gradual increases, reflecting controlled debt costs over time.

Interest Coverage Ratio:

Consistently strong coverage indicating sound ability to service debt despite fluctuations in earnings.

In summary, the financial data reveals that operational earnings have been subject to significant swings, affecting quarterly EBIT values considerably. However, the company's management of interest-bearing liabilities and ability to cover interest expenses has remained effectively stable and strong throughout the analyzed period. Future attention may be beneficial in addressing the volatility in operating earnings to enhance overall financial stability.