Walgreens Boots Alliance Inc (WBA)

Activity ratios

Short-term

Turnover ratios

	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Inventory turnover	19.87	19.03	19.07	15.58	18.15	18.00	16.40	15.16	16.08	15.68	14.91	14.00	16.74	12.34	12.67	9.92	13.58	14.68	14.02	12.70
Receivables turnover	25.37	24.46	23.29	23.81	25.96	23.40	23.38	27.39	26.41	26.68	25.39	22.53	24.12	26.61	28.31	17.93	19.50	19.81	18.25	18.41
Payables turnover	11.74	12.46	12.77	10.84	11.86	12.22	11.29	11.60	11.93	11.32	11.94	10.65	12.26	9.11	9.83	6.84	10.59	10.01	9.04	8.69
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Walgreens Boots Alliance Inc's activity ratios, based on the inventory turnover, receivables turnover, and payables turnover, indicate efficient management of assets and liabilities.

- Inventory turnover has been relatively stable over the periods, with an average of around 16 to 19 times per year. This suggests the company is effectively managing its inventory levels and selling its products efficiently.

- Receivables turnover has remained high and fairly consistent, ranging from 22 to 28 times per year. This indicates that Walgreens Boots Alliance is collecting its receivables quickly, which is positive for its cash flow and liquidity.

- Payables turnover has also been consistent, averaging around 10 to 12 times per year. This shows the company's effective management of its payment obligations to suppliers.

Overall, these activity ratios reflect a well-managed working capital cycle at Walgreens Boots Alliance, contributing to its operational efficiency and financial health.

Average number of days

		Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Days of inventory on hand (DOH)	days	18.37	19.18	19.14	23.42	20.11	20.28	22.26	24.08	22.70	23.28	24.47	26.07	21.81	29.59	28.80	36.80	26.89	24.86	26.03	28.73
Days of sales outstanding (DSO)	days	14.39	14.92	15.67	15.33	14.06	15.60	15.61	13.33	13.82	13.68	14.37	16.20	15.13	13.72	12.89	20.35	18.71	18.42	20.00	19.82
Number of days of payables	days	31.09	29.29	28.57	33.68	30.77	29.88	32.34	31.47	30.58	32.23	30.58	34.26	29.76	40.09	37.13	53.37	34.45	36.48	40.36	42.00

Days of inventory on hand (DOH) measures how efficiently a company manages its inventory levels. A lower DOH indicates faster inventory turnover. Walgreens Boots Alliance Inc's DOH has shown a decreasing trend over the periods, from 28.80 days in February 2021 to 18.37 days in August 2024, suggesting improved inventory management.

Days of sales outstanding (DSO) reflects how quickly a company collects payments from its customers. A lower DSO indicates faster cash collection. Walgreens Boots Alliance Inc's DSO has fluctuated over the periods but has generally remained stable, ranging from 12.89 days in May 2021 to 20.35 days in February 2021.

Number of days of payables measures how long a company takes to pay its suppliers. A higher number indicates a longer payable period. Walgreens Boots Alliance Inc's payable period has shown volatility over the periods, ranging from 28.57 days in February 2024 to 53.37 days in February 2021.

Overall, Walgreens Boots Alliance Inc's activity ratios suggest improving efficiency in managing inventory and collecting payments, although there is some variability in the payable period. Investors and analysts may view these trends as positive signs of effective working capital management.

Long-term

	Aug 31, 2024	May 31, 2024	Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019
Fixed asset turnover	16.33	6.39	6.38	6.02	12.81	5.73	5.66	5.61	5.55	5.57	5.41	5.40	11.16	5.55	5.63	5.60	10.87	5.67	10.25	10.05
Total asset turnover	1.83	1.75	1.71	1.45	1.45	1.39	1.33	1.43	1.47	1.45	1.46	1.39	1.68	1.49	1.52	1.58	1.60	1.60	1.54	1.51

The long-term activity ratios of Walgreens Boots Alliance Inc provide insights into how efficiently the company is utilizing its assets to generate sales. The fixed asset turnover ratio measures the company's ability to generate sales from its investments in fixed assets, such as property, plant, and equipment. The ratio has shown fluctuations over the past few quarters, with a significant increase in the most recent period compared to the previous ones, indicating a more efficient utilization of fixed assets to generate revenue.

On the other hand, the total asset turnover ratio reflects the company's overall efficiency in generating sales from all its assets, both fixed and current. The ratio has also shown variability over the quarters, with an overall increasing trend. This indicates that Walgreens Boots Alliance Inc has been successful in improving its overall asset utilization to generate sales.

Overall, the company's long-term activity ratios suggest an improving trend in asset utilization efficiency, which is a positive indicator for its long-term operational performance and profitability.