Walmart (WMT) Interest Coverage

: 10.44 (As of Jan. 2024)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Walmart's Operating Income for the three months ended in Jan. 2024 was $7,254 Mil. Walmart's Interest Expense for the three months ended in Jan. 2024 was $-695 Mil. Walmart's interest coverage for the quarter that ended in Jan. 2024 was 10.44. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Walmart's Interest Coverage or its related term are showing as below:

WMT' s Interest Coverage Range Over the Past 10 Years
Min: 7.91 Med: 9.61 Max: 13.01
Current: 10.07

WMT's Interest Coverage is ranked better than
53.36% of 253 companies
in the Retail - Defensive industry
Industry Median: 9.26 vs WMT: 10.07

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Walmart Interest Coverage Historical Data

The historical data trend for Walmart's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Walmart Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

7.91

9.74

13.01

9.60

10.07

Walmart Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage																9.12	9.40	11.40	9.09	10.44

Competitive Comparison

For the Discount Stores subindustry, Walmart's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* 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. Note that "N/A" values will not show up in the chart.

Walmart Interest Coverage Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Walmart's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Walmart's Interest Coverage falls into.

Walmart Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Walmart's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, Walmart's Interest Expense was $-2,683 Mil. Its Operating Income was $27,012 Mil. And its Long-Term Debt & Capital Lease Obligation was $54,784 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	27012	/	-2683
	=	10.07

Walmart's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Walmart's Interest Expense was $-695 Mil. Its Operating Income was $7,254 Mil. And its Long-Term Debt & Capital Lease Obligation was $54,784 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	7254	/	-695
	=	10.44

The higher the ratio, the stronger the company's Financial Strength is.

Walmart (NYSE:WMT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Walmart Interest Coverage Related Terms

Thank you for viewing the detailed overview of Walmart's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Walmart (WMT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Walmart Inc (NYSE:WMT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

WMT:Peru WMT:Mexico 1WMT:Italy WMTd:UK 0R1W:UK WMTD:Germany WMT:Germany WMT:Germany WMT:Germany WMT:Germany WMT:Chile WMT:Canada WALM34:Brazil WMT:Austria WMT:Argentina

Address

702 S.W. 8th Street, Bentonville, AR, USA, 72716

Website

https://stock.walmart.com

Walmart serves as the preeminent retailer in the United States, with its strategy predicated on superior operating efficiency and offering the lowest priced goods to consumers to drive robust store traffic and product turnover. Walmart augmented its low-price business strategy by offering a convenient one-stop shopping destination with the opening of its first supercenter in 1988.Today, Walmart operates over 4,700 stores in the United States (5,300 including Sam's Club) and over 10,000 stores globally. Walmart generated over $420 billion in domestic namesake sales last year, with Sam's Club contributing another $84 billion to the firm's top line. Internationally, Walmart generated $100 billion in sales. The company serves around 240 million customers globally each week.

Executives

John D Rainey	officer: Executive Vice President	C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Jim C Walton	director, other: Director	C/O WALTON ENTERPRISES, INC., P.O. BOX 1860, BENTONVILLE AR 72712
S Robson Walton	director, 10 percent owner, officer: Chairman of the Board	C/O WALTON ENTERPRISES, INC., P.O. BOX 1860, BENTONVILLE AR 72716-0105
Alice L Walton	10 percent owner	110 N.W. SECOND STREET, SUITE 300, BENTONVILLE AR 72712
C Douglas Mcmillon	officer: Executive Vice President	702 SW 8TH STREET, BENTONVILLE AR 72716
John R. Furner	officer: Executive Vice President	702 SW 8TH STREET, BENTONVILLE AR 72716
Rachel L Brand	officer: Executive Vice President	702 S.W. 8TH STREET, BENTONVILLE AR 72716
Christopher James Nicholas	officer: Executive Vice President	702 SW 8TH STREET, BENTONVILLE AR 72716
David Chojnowski	officer: Senior Vice President	5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Daniel J Bartlett	officer: Executive Vice President	702 SW 8TH STREET, BENTONVILLE AR 72716
Randall L Stephenson	director	208 S. AKARD ST., DALLAS TX 75202
Judith J Mckenna	officer: Executive Vice President	702 S.W. 8TH STREET, BENTONVILLE AR 72716
M. Brett Biggs	officer: Executive Vice President	702 SW 8TH STREET, BENTONVILLE AR 72716
Marc E. Lore	officer: Executive Vice President	443 GREENWICH STREET, PHA, NEW YORK NY 10013
Kathryn J. Mclay	officer: Executive Vice President	702 S.W. 8TH STREET, BENTONVILLE AR 72716