Walgreens Boots Alliance Inc (WBA)
Current ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 15,503,000 | 16,902,000 | 15,814,000 | 18,073,000 | 18,700,000 |
| Total current liabilities | US$ in thousands | 24,535,000 | 22,583,000 | 22,054,000 | 27,070,000 | 25,769,000 |
| Current ratio | 0.63 | 0.75 | 0.72 | 0.67 | 0.73 |
August 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $15,503,000K ÷ $24,535,000K
= 0.63
The current ratio of Walgreens Boots Alliance Inc has fluctuated over the past five years. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio is generally preferred, as it indicates a stronger ability to cover short-term liabilities.
In 2023, the current ratio stands at 0.63, representing a decrease from the previous year. This implies a decline in the company's ability to cover its short-term obligations using its current assets. A current ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
In 2022, the current ratio was 0.75, showing a slight improvement from the previous year. This suggests that the company was better able to cover its short-term obligations using its current assets compared to 2021.
In 2021, the current ratio was 0.72, indicating a moderate ability to meet short-term obligations with current assets. However, this ratio was lower than that of the previous year, showing a decrease in the company's short-term liquidity position.
In 2020, the current ratio was 0.67, reflecting a decrease from the previous year. This signifies a weaker ability to cover short-term liabilities with current assets compared to the prior year.
In 2019, the current ratio was 0.73, representing a slight decrease from the previous year. Although the ratio was below 1, indicating potential liquidity challenges, it was relatively stable compared to the following years.
Overall, the trend in Walgreens Boots Alliance Inc's current ratio indicates fluctuations in the company's short-term liquidity position over the past five years, with the current ratio consistently below 1. This suggests the company may need to closely monitor its ability to meet short-term obligations with its current assets.
Peer comparison
Aug 31, 2023