Walmart Inc. — Earnings Quality Grade F
WMT · Consumer Defensive
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 6 days, change +0 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 4.7%, CFFO 14.1%. Cash follows revenue
Expense Quality
Inventory 4.3% vs COGS 4.6%. Normal
CapEx growth 12.0% vs revenue 4.7%. Normal
Insufficient data
Gross margin 24.9%, change +0.1pp. Stable
Cash Flow Quality
CFFO/NI = 1.90. Profits backed by cash
FCF $14.9B, FCF/NI = 0.68
Accruals ratio = -6.9%. Low accruals
Cash $10.7B covers only 16% of debt $67.1B
Balance Sheet Health
Goodwill+Intangibles $28.7B = 29% of equity. Manageable
Debt/EBITDA = 1.4x. Healthy
Other assets 9.6% vs revenue 4.7%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -0% YoY. Normal
Manipulation Score
Insufficient data
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08