Walmart Current Ratio and Financial Health

Walmart's current ratio is a crucial indicator of its financial health. As of 2022, Walmart's current ratio was 1.23, which is a relatively strong position.

This ratio indicates that for every dollar of current liabilities, Walmart has $1.23 in current assets. In simpler terms, Walmart has more than enough cash and other liquid assets to cover its short-term debts.

The company's ability to pay its debts on time is reflected in its current ratio. A ratio above 1 is generally considered a sign of good financial health, and Walmart's ratio indicates that it's in a stable position.

Walmart's strong current ratio is a result of its efficient inventory management and cash flow generation.

Walmart's current ratio is a key indicator of its ability to meet short-term obligations.

Walmart's current ratio has been steadily declining since 2022, dropping from 0.93 to 0.82 in 2023, but then slightly improved to 0.83 in 2024.

Here's a breakdown of Walmart's current ratio over the years:

Walmart's current ratio is lower than its competitors, Costco Wholesale Corp. and Target Corp.

In 2024, Walmart's current ratio was 0.83, which is lower than Costco Wholesale Corp.'s 0.97 and Target Corp.'s 0.91.

Walmart's quick ratio is another important liquidity ratio that measures its ability to meet short-term obligations.

Walmart's quick ratio has also been declining since 2022, dropping from 0.26 to 0.18 in 2023, but then slightly improved to 0.20 in 2024.

Here's a breakdown of Walmart's quick ratio over the years:

Walmart's quick ratio is lower than its competitors, Costco Wholesale Corp. and Target Corp.

In 2024, Walmart's quick ratio was 0.20, which is lower than Costco Wholesale Corp.'s 0.39 and Target Corp.'s 0.27.

Walmart's revenue reached $524.4 billion in 2020, a 4.2% increase from the previous year.

The company's net income was $14.9 billion in 2020, down from $16.4 billion in 2019.

Walmart's total assets were $236.9 billion in 2020, with current assets making up a significant portion of that total.

The company's current liabilities were $133.5 billion in 2020, with accounts payable being the largest component.

Walmart's interest coverage ratio was 7.3 in 2020, indicating that the company can easily cover its interest expenses with its earnings before interest and taxes.