Walgreens Boots Alliance Inc (WBA)
Cash ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,319,000 | 728,000 | 1,358,000 | 559,000 | 469,000 |
| Short-term investments | US$ in thousands | 1,790,000 | 11,000 | 1,114,000 | 634,000 | 47,000 |
| Total current liabilities | US$ in thousands | 26,953,000 | 24,535,000 | 22,583,000 | 22,054,000 | 27,070,000 |
| Cash ratio | 0.12 | 0.03 | 0.11 | 0.05 | 0.02 |
August 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,319,000K
+ $1,790,000K)
÷ $26,953,000K
= 0.12
The cash ratio of Walgreens Boots Alliance Inc has shown fluctuating trends over the past five years. As of August 31, 2024, the cash ratio stands at 0.12, indicating that the company's cash and cash equivalents cover 12% of its current liabilities. This marks a significant improvement compared to the previous years, where the cash ratio was 0.03 in 2023, 0.11 in 2022, 0.05 in 2021, and 0.02 in 2020.
A higher cash ratio suggests that the company has a better ability to meet its short-term obligations using its readily available cash reserves. The upward trend in the cash ratio from 2020 to 2024 could indicate improved liquidity and financial strength for Walgreens Boots Alliance Inc. However, it is important to note that a very high cash ratio may also imply that the company is holding excess cash that could potentially be invested more efficiently to generate returns.
Overall, the increasing cash ratio of Walgreens Boots Alliance Inc reflects a positive liquidity position, which may enhance its ability to address short-term financial commitments.
Peer comparison
Aug 31, 2024