Walmart (NYSE:WMT) Financial Strength

: 7 (As of Jul. 2023)

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Walmart has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Walmart's Interest Coverage for the quarter that ended in Jul. 2023 was 11.40. Walmart's debt to revenue ratio for the quarter that ended in Jul. 2023 was 0.10. As of today, Walmart's Altman Z-Score is 4.71.

Competitive Comparison

For the Discount Stores subindustry, Walmart's Financial Strength, along with its competitors' market caps and Financial Strength 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.

Annual Data Quarterly Data

Walmart Financial Strength Distribution

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

* The bar in red indicates where Walmart's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

Walmart Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Walmart's Interest Expense for the months ended in Jul. 2023 was $-642 Mil. Its Operating Income for the months ended in Jul. 2023 was $7,316 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2023 was $55,233 Mil.

Walmart's Interest Coverage for the quarter that ended in Jul. 2023 is

Interest Coverage	=	-1	*	Operating Income (Q: Jul. 2023 )	/	Interest Expense (Q: Jul. 2023 )
	=	-1	*	7316	/	-642
	=	11.40

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Walmart's Debt to Revenue Ratio for the quarter that ended in Jul. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Jul. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(9568	+	55233)	/	646528
	=	0.10

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Walmart has a Z-score of 4.71, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.71 is strong.

* 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.

Walmart (NYSE:WMT) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Walmart has the Financial Strength Rank of 7.

Walmart Financial Strength Related Terms

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

Walmart (NYSE:WMT) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

WMT:Peru WMT:Mexico 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.

Executives

John D Rainey	officer: Executive Vice President	C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Randall L Stephenson	director	208 S. AKARD ST., DALLAS TX 75202
Donna Morris	officer: Executive Vice President	345 PARK AVENUE, SAN JOSE CA 95110
Kathryn J. Mclay	officer: Executive Vice President	702 S.W. 8TH STREET, BENTONVILLE AR 72716
Suresh Kumar	officer: Chief Technology Officer	860 W. CALIFORNIA AVE., SUNNYVALE CA 94086
Cesar Conde	director	ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Stephen Easterbrook	director	MCDONALD'S CORPORATION, 110 NORTH CARPENTER STREET, CHICAGO IL 60607
Rachel L Brand	officer: Executive Vice President	702 S.W. 8TH STREET, BENTONVILLE AR 72716
Sarah Friar	director	C/O NEXTDOOR HOLDINGS, INC., 420 TAYLOR STREET, SAN FRANCISCO CA 94102
Judith J Mckenna	officer: Executive Vice President	702 S.W. 8TH STREET, BENTONVILLE AR 72716
Carla A Harris	director	702 SW 8TH STREET, BENTONVILLE AR 72716
John R. Furner	officer: Executive Vice President	702 SW 8TH STREET, BENTONVILLE AR 72716
David Chojnowski	officer: Senior Vice President	5505 BLUE LAGOON DRIVE, MIAMI FL 33126
Marc E. Lore	officer: Executive Vice President	443 GREENWICH STREET, PHA, NEW YORK NY 10013
Steuart L Walton	director	702 SW 8TH STREET, BENTONVILLE AR 72716