2023 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 known for its extensive range of products, competitive pricing, and a vast network of stores and online services.

The cash flow statement provides insight into how much cash or cash equivalents a company has generated and used over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to understand how a company manages its cash resources.

How to read the chart

The chart above illustrates the cash flow of Walmart Inc. in 2023. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We start on the left with the company's cash position at the beginning of the year. During the year, the cash decreased, indicating that a portion of it was used for financing and investing activities. The cash flow from operating activities is the largest source of cash, while the cash flow from investing activities is negative, indicating that the company spent more on new investments than it received from selling assets or investments.

The cash flow from financing activities is also negative, reflecting 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 end on the right with the company's cash position at the end of the year.

Real-Time Cash Flow Counter

To get 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 2023. The counter starts 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 happen, but a simulation based on the company's reported cash flow for 2023. The counter is meant to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2023, Walmart Inc. generated $28,841 million in cash from operating activities, spent $17,722 million on investing activities, and used $17,039 million in financing activities. Consequently, the company's cash balance decreased by $5,993 million during the year.

The company's beginning cash balance was $14,834 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The company's ending cash balance was $8,841 million.

The company's capital expenditures for the year were $16,857 million. This amount represents the cash the company spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $11,984 million in 2023. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.

Summary

Walmart's cash flow in 2023 highlights several key aspects. The company generated substantial cash 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 maintained a strong free cash flow, indicating its ability to fund dividends, share repurchases, and other strategic investments. The negative cash flow from investing activities underscores Walmart's continued investment in its infrastructure and growth initiatives.