Walgreens Boots Alliance Inc (WBA)
Current ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 18,335,000 | 15,503,000 | 16,902,000 | 15,814,000 | 18,073,000 |
| Total current liabilities | US$ in thousands | 26,953,000 | 24,535,000 | 22,583,000 | 22,054,000 | 27,070,000 |
| Current ratio | 0.68 | 0.63 | 0.75 | 0.72 | 0.67 |
August 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $18,335,000K ÷ $26,953,000K
= 0.68
The current ratio of Walgreens Boots Alliance Inc has fluctuated over the past five years, ranging from 0.63 to 0.75. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations with its current assets alone.
In 2024, the current ratio decreased to 0.68 from 0.63 in 2023, signaling a slight improvement in the company's ability to cover its short-term liabilities. However, the current ratio remains below 1, suggesting that Walgreens Boots Alliance Inc may still face challenges in meeting its immediate financial obligations using its current assets.
It is important to note that a current ratio of 0.68 indicates that for every $1 of current liabilities, the company has $0.68 of current assets available. This may raise concerns about liquidity and ability to manage short-term financial obligations effectively. Monitoring and improving the current ratio should be a priority for Walgreens Boots Alliance Inc to enhance its financial health and stability.
Peer comparison
Aug 31, 2024