What is the current ratio for Walmart?

Current Ratio The formula is current assets divided by current liabilities. A value of 1.0 or higher is preferred. Many value investors consider 1.5 to be an ideal current ratio. Walmart’s current ratio comes in low at 0.79.

What is Walmart’s financial position?

Walmart U.S. net sales totaled $370 billion for fiscal 2021, up about 8.6% from $341 billion in fiscal 2020. (Comp-store sales for U.S. locations were up 8.6% for the year, the company reported in February.)

How financially stable is Walmart?

Walmart has the Financial Strength Rank of 6. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better. 2. Debt to revenue ratio.

Why is Walmart current ratio low?

Unsurprisingly, Wal-Mart’s low quick ratio is also a result of supplier leverage. Specifically, at the end of the fiscal third quarter the company had $49.6 billion in inventory booked on its balance sheet; accounts payable totaled $39.2 billion for the period.

What is walmarts return on equity ratio?

Walmart’s return on common equity hit its five-year low in January 2019 of 8.9%. Walmart’s return on common equity decreased in 2017 (17.2%, -5.0%), 2018 (12.7%, -26.5%), 2019 (8.9%, -30.0%) and 2021 (17.4%, -14.1%) and increased in 2020 (20.2%, +128.0%).

What is Ratio Analysis in financial management?

Ratio analysis is a quantitative method of gaining insight into a company’s liquidity, operational efficiency, and profitability by studying its financial statements such as the balance sheet and income statement. Ratio analysis is a cornerstone of fundamental equity analysis.

What is Walmart debt to equity ratio?

Debt-to-Equity Ratio Walmart’s D/E ratio as of Oct. 31, 2020, was 1.87. 1 This is a healthy figure that has remained remarkably steady over the past decade.

What is Walmart’s inventory turnover ratio?

Walmart’s inventory turnover for fiscal years ending January 2017 to 2021 averaged 8.8x. Walmart’s operated at median inventory turnover of 8.8x from fiscal years ending January 2017 to 2021. Looking back at the last five years, Walmart’s inventory turnover peaked in April 2021 at 9.6x.

Is Walmart under valued?

Because Walmart is relatively overvalued, the long-term return of its stock is likely to be lower than its business growth, which averaged 5.7% over the past three years and is estimated to grow 1.55% annually over the next three to five years. Link: These companies may deliever higher future returns at reduced risk.

What are Walmart’s margins?

Historical Profit Margin (Quarterly) Data

What is a bad current ratio?

A current ratio of above 1 indicates that the business has enough money in the short term to pay its obligations, while a current ratio below 1 suggests that the company may run into short-term liquidity issues.

What is Walmart financial ratios?

The ratio compares the share price to earnings per share (EPS). The average P/E ratio varies by industry, but across the board, it is around 15. As of Q3 2018, Wal-Mart’s P/E ratio is about 20x, meaning that WMT shares trade in the market at around 20 times the earnings per share.

What is Walmarts debt ratio?

The debt/equity (D/E) ratio expresses a company’s total debt as a percentage of its equity. Ideally, a company’s debt should be lower than its equity, which means a D/E ratio of under 100% is preferable. As of Q3 2018, Wal-Mart’s D/E ratio is 70%, indicating a healthy level of debt.

What are the five key financial ratios?

Ratio analysis consists of calculating financial performance using five basic types of ratios: profitability, liquidity, activity, debt, and market.

What is Walmart financial leverage?

Walmart’s financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. Walmart’s financial risk is the risk to Walmart stockholders that is caused by an increase in debt.