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Walmart Inc  (NYSE:WMT) Current Ratio: 0.76 (As of Jan. 2018)

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Walmart Inc's current ratio for the quarter that ended in Jan. 2018 was 0.76.

Walmart Inc has a current ratio of 0.76. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Walmart Inc has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.

NYSE:WMT' s Current Ratio Range Over the Past 10 Years
Min: 0.76   Max: 1.76
Current: 0.76

0.76
1.76

During the past 13 years, Walmart Inc's highest Current Ratio was 1.76. The lowest was 0.76. And the median was 0.94.

NYSE:WMT's Current Ratio is ranked lower than
79% of the 365 Companies
in the Global industry.

( Industry Median: 1.21 vs. NYSE:WMT: 0.76 )

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Walmart Inc Annual Data

Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18
Current Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.88 0.97 0.93 0.86 0.76

Walmart Inc Quarterly Data

Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18
Current Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.86 0.77 0.78 0.81 0.76

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.

Walmart Inc's Current Ratio for the fiscal year that ended in Jan. 2018

Current Ratio (A: Jan. 2018 )=Total Current Assets (A: Jan. 2018 )/Total Current Liabilities (A: Jan. 2018 )
=59664/78521
=0.76

Walmart Inc's Current Ratio for the quarter that ended in Jan. 2018 is calculated as

Current Ratio (Q: Jan. 2018 )=Total Current Assets (Q: Jan. 2018 )/Total Current Liabilities (Q: Jan. 2018 )
=59664/78521
=0.76

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.

Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.

The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.

If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.


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