Debt-to-Equity Ratio

Walmart’s debt-to-equity (D/E) ratio of 0.55x means the company has 55 cents of debt for every dollar of shareholder equity – a relatively low level that indicates less reliance on borrowed money.

Compared to sector peers, Walmart’s ratio sits below the Consumer Defensive median of 0.68x and places it in the 42nd percentile, meaning roughly 42% of peers have a lower D/E ratio. The year-over-year change is not available, but the metric fell by 30.4% from the previous quarter to the current 0.55x from 0.79x. The combination of a below-median level with a sharp quarterly decline points to reduced financial leverage, which typically lowers bankruptcy risk and can signal more conservative financing. However, the overall BriefStock verdict is CAUTIOUS, and this metric supports that view – even though leverage is improving, other factors (such as margin pressure or valuation) likely keep the outlook tempered.

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