Walgreens Boots Alliance Inc (WBA)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 1.67 | 4.81 | 6.24 | 5.07 | 3.40 | 6.00 | 5.54 | 5.94 | 5.94 | 4.73 | 8.27 | 8.01 | 7.17 | 3.22 | 4.57 | 3.79 | 11.15 | 6.80 | 5.66 | 6.56 |
August 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 18.37 + 14.39 – 31.09
= 1.67
The cash conversion cycle for Walgreens Boots Alliance Inc fluctuated over the periods provided, ranging from a low of 1.67 days to a high of 11.15 days. Generally, a shorter cash conversion cycle indicates that the company is efficient in managing its working capital and converting inventory and receivables into cash, which is a positive sign.
Analyzing the trend, we can observe that the cash conversion cycle has shown variability, with periods of both shorter and longer cycles. It is important to note that a longer cash conversion cycle can suggest inefficiencies in managing inventory, collecting receivables, or paying suppliers, potentially impacting the company's liquidity and cash flow.
Overall, Walgreens Boots Alliance Inc should focus on maintaining a shorter cash conversion cycle to improve its working capital management, enhance liquidity, and optimize cash flow operations.
Peer comparison
Aug 31, 2024
See also:
Walgreens Boots Alliance Inc Cash Conversion Cycle (Quarterly Data)