Walgreens Boots Alliance Inc (WBA)
Cash ratio
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 668,000 | 784,000 | 739,000 | 871,000 | 1,088,000 | 2,349,000 | 1,358,000 | 2,285,000 | 1,887,000 | 4,135,000 | 559,000 | 1,345,000 | 1,030,000 | 1,111,000 | 469,000 | 768,000 | 792,000 | 811,000 | 1,023,000 | 768,000 |
| Short-term investments | US$ in thousands | — | — | 11,000 | 99,000 | 752,000 | 1,883,000 | 1,114,000 | 2,173,000 | — | — | 634,000 | — | — | — | 47,000 | 1,000 | 4,000 | 4,000 | 5,000 | 71,000 |
| Total current liabilities | US$ in thousands | 24,915,000 | 26,116,000 | 24,535,000 | 26,170,000 | 28,228,000 | 28,036,000 | 22,583,000 | 24,067,000 | 22,699,000 | 24,447,000 | 22,054,000 | 34,475,000 | 31,246,000 | 30,379,000 | 27,070,000 | 26,649,000 | 28,662,000 | 29,494,000 | 25,769,000 | 25,060,000 |
| Cash ratio | 0.03 | 0.03 | 0.03 | 0.04 | 0.07 | 0.15 | 0.11 | 0.19 | 0.08 | 0.17 | 0.05 | 0.04 | 0.03 | 0.04 | 0.02 | 0.03 | 0.03 | 0.03 | 0.04 | 0.03 |
February 29, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($668,000K
+ $—K)
÷ $24,915,000K
= 0.03
The cash ratio of Walgreens Boots Alliance Inc has been relatively stable over the analyzed period, fluctuating between 0.02 to 0.19. The cash ratio measures the company's ability to cover its short-term obligations using its readily available cash and cash equivalents.
A cash ratio of 0.03 indicates that for every dollar of current liabilities, Walgreens Boots Alliance Inc has $0.03 in cash and cash equivalents. This suggests that the company may face some challenges in meeting its short-term obligations solely from its cash resources.
The fluctuations in the cash ratio may be influenced by the company's cash management policies, operational efficiency, and overall financial health. A higher cash ratio, such as 0.19 observed in August 31, 2022, indicates a stronger liquidity position, while a lower ratio, such as 0.02 in May 31, 2020, may raise concerns about the company's ability to meet its short-term obligations.
Overall, it is essential for investors and stakeholders to consider various financial ratios in conjunction with other financial metrics to gain a comprehensive understanding of Walgreens Boots Alliance Inc's financial performance and liquidity position.
Peer comparison
Feb 29, 2024