2022 Cash Flow Analysis for Walmart Inc. WMT

Walmart Inc. is a multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores. The company is headquartered in Bentonville, Arkansas, and was founded in 1962. Walmart is renowned for its extensive range of products and services, including groceries, apparel, electronics, and more, available both in-store and online.

The cash flow statement is an essential financial document that illustrates how much cash or cash equivalents a company has generated and utilized over a specific period. This statement is divided into three sections: operating activities, investing activities, and financing activities. It provides valuable insights for investors and analysts into how a company manages its cash resources.

How to read the chart

The chart above illustrates the cash flow of Walmart Inc. in 2022. The width of the bars represents the volume of cash flow, with wider bars indicating larger amounts.

We begin on the left with Walmart's cash position at the start of the fiscal year. During the year, the cash decreased, indicating that a portion of it was utilized for financing and investing activities. The cash flow from operating activities is the primary source of cash, while investing activities show a negative cash flow.

The negative cash flow from investing activities suggests that Walmart spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is also negative, indicating that the company paid out more cash for purposes such as debt repayments, share buybacks, or dividend payments.

After accounting for the change in cash, we conclude on the right with Walmart's cash position at the end of the year.

Real-Time Cash Flow Counter

To provide a sense of the scale of Walmart Inc.'s cash flow, we have created a real-time counter that simulates the company's cash flow for 2022. The counter activates when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they occur, but a simulation based on the company's reported cash flow for 2022. The counter is designed to give you an understanding of the scale of the company's cash flow and how rapidly it moves.

Cash Flow Statement

In 2022, Walmart Inc. generated $24,181 million in cash from operating activities, spent $6,015 million on investing activities, and used $22,828 million on financing activities. Consequently, the company's cash balance decreased by $4,802 million during the year.

The company's beginning cash balance was $17,788 million, which typically includes cash and cash equivalents, such as short-term investments that can be readily converted into cash. The company's ending cash balance was $14,834 million.

Walmart's capital expenditures for the year amounted to $13,106 million, representing the cash spent on investments in property, plant, and equipment. By subtracting capital expenditures from cash flow from operations, the company's free cash flow was $11,075 million in 2022. This figure represents the cash available for dividends, stock repurchases, or other investments.

Summary

Walmart Inc.'s cash flow in 2022 highlights several key aspects. The company maintained a strong cash flow from operating activities, which was the primary source of cash. However, significant expenditures on capital investments and financing activities led to a decrease in the overall cash balance. Despite this, Walmart's ability to generate substantial free cash flow indicates its capacity to support dividends, share repurchases, and future investments.