How financially stable is Walmart? (2024)

How financially stable is Walmart?

Walmart has a cash-to-debt ratio of 0.21, which is worse than 65.25% of 305 companies in the Retail - Defensive industry. However, Walmart's overall financial strength ranks 7 out of 10, indicating fair financial stability.

Is Walmart in a good financial position?

Walmart has a total shareholder equity of $90.6B and total debt of $42.4B, which brings its debt-to-equity ratio to 46.8%. Its total assets and total liabilities are $252.4B and $161.8B respectively. Walmart's EBIT is $27.0B making its interest coverage ratio 12.6. It has cash and short-term investments of $9.9B.

What is Walmart's financial status?

Walmart Financial Overview

The company's EPS TTM is $1.911; its P/E ratio is 31.89; and it has a dividend yield of 1.25%. Walmart is scheduled to report earnings on May 16, 2024, and the estimated EPS forecast is $0.52.

Is Walmart financially sound?

Adjusted EPS: Q4 Adjusted EPS reached $1.80, excluding net gains from equity and other investments. Dividend Increase: Walmart raises its annual dividend by 9%, reflecting confidence in its financial strength. Free Cash Flow: FY24 free cash flow increased by $3.1 billion to $15.1 billion.

What is the financial projection for Walmart?

Walmart is forecast to grow earnings and revenue by 10.7% and 3.8% per annum respectively. EPS is expected to grow by 11.5% per annum. Return on equity is forecast to be 22% in 3 years.

Is Walmart good or bad for the economy?

The presence of a Walmart store can hurt the business of smaller companies and lower wages for local workers. Much of the Walmart Effect can be attributed to Walmart's immense buying power. The Walmart Effect can also affect suppliers, who must drive their production costs down in order to afford to sell to Walmart.

Does Walmart have any debt?

Total debt on the balance sheet as of January 2024 : $61.32 B. According to Walmart's latest financial reports the company's total debt is $61.32 B. A company's total debt is the sum of all current and non-current debts.

What are the financial weaknesses of Walmart?

Walmart's Weaknesses – Internal Strategic Factors

Large span of control – Its highly extended size and massive span of control could leave Walmart weak in some areas. Thin profit margins – Walmart focuses on a cost leadership strategy. It results in thin profit margins for the company.

What is the debt ratio of Walmart?

Walmart's debt / equity for fiscal years ending January 2020 to 2024 averaged 80.4%. Walmart's operated at median debt / equity of 78.6% from fiscal years ending January 2020 to 2024.

What is the net debt of Walmart?

Walmart's operated at median net debt of 52.41 billion from fiscal years ending January 2020 to 2024. Looking back at the last 5 years, Walmart's net debt peaked in January 2020 at 63.664 billion. Walmart's net debt hit its 5-year low in January 2022 of 43.658 billion.

How is Walmart doing financially 2024?

With fiscal year 2024 revenue of $648 billion, Walmart employs approximately 2.1 million associates worldwide.

Is Walmart a stable company?

When it comes to Walmart's retail business, it's as stable as they come. The company has more than 10,000 stores and it just grew its same-store sales by 4.9% in the third quarter of 2023, propelling its trailing-12-month revenue to an all-time high.

What is the outlook for Walmart in 2024?

The improved traffic this brings, in turn, improves its ability to sell non-food items such as apparel and furniture, even in a dis-inflationary environment, analysts said. Due to its heft in grocery, Walmart is expected to report sales of $645 billion for fiscal 2024, more than double its closest competitor.

Who is the biggest investor in Walmart?

Jim Walton owns the most shares of Walmart (WMT).

What do analysts say about Walmart?

The highest analyst price target is $75.99 ,the lowest forecast is $58.99. The average price target represents 8.32% Increase from the current price of $60.68. Walmart's analyst rating consensus is a Strong Buy. This is based on the ratings of 28 Wall Streets Analysts.

Why is Walmart stock down?

Walmart's value hasn't crashed. The reduced share price is the result of a previously announced stock split. Back in January, Walmart announced it would split its stock at a 3-to-1 ratio on February 26, 2024, which is today.

Is Walmart too big to fail?

The size of Walmart creates a unique issue where small local governments are in favor of keeping a store open but cannot offer meaningful incentives to affect Walmart's opinion. This makes Walmart “Too Big to Fail” for small towns, since without them there might not be stores (Kenton, 2019).

Can Walmart survive recession?

It's no surprise that discount retailer Walmart outperformed during each of the past two recession years. Americans can't go without groceries when times get tough, but they can save money by bargain hunting at Walmart.

Why is Walmart changing their name?

While Wal-Mart Stores as a corporate legal name is rarely used in public-facing materials or in stores themselves, CEO Doug McMillon said in a statement that he felt the name change was needed to be “consistent with the idea that you can shop us however you like as a customer.”

How much money has been stolen from Walmart?

Walmart loses approximately $3 billion every year due to theft and shoplifting incidents. What percentage of shrink in Walmart is attributed to theft? Approximately 75% of shrink (inventory loss) is attributed to theft in Walmart stores. How has Walmart employed technology to combat theft in their stores?

What company has the most debt?

As of February 2023, the Japanese car manufacturer Toyota was the company with the highest debt worldwide, amounting to 217 billion U.S. dollars. The Chinese property developer Evergrande followed in second with a debt of roughly 170 billion U.S. dollars, with Volkswagen following in third.

Is Walmart still making money?

Walmart's business is already massive. For the fiscal year ending Jan. 31, 2024, the company generated an incredible $648.1 billion in revenue. In a span of three years, its top line has risen by 16%, while the bottom line has improved by 15% to $15.5 billion.

Who is Walmart's biggest competitor?

Amazon. Without a doubt, the Seattle-based eCommerce retailer is Walmart's top competitor right now. As of 2022, Walmart's total equity is $91.891 billion. For the fiscal year 2022, the company's revenue increased by 2.43%, reaching $572.745 billion.

How does Walmart have poor working conditions?

For example, the company has shut down stores that have voted for unions, arguing that the reason for closure was related to finances rather than the union itself. Other labor violations include illegal firings, threats, unpaid overtime, and forced overtime. In short, Walmart isn't a stranger to an unhappy workforce.

What is Walmart's biggest weakness?