Walgreens Boots Alliance Inc (WBA)
Quick ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 5,851,000 | 5,381,000 | 5,017,000 | 5,663,000 | 7,132,000 |
| Total current liabilities | US$ in thousands | 26,953,000 | 24,535,000 | 22,583,000 | 22,054,000 | 27,070,000 |
| Quick ratio | 0.33 | 0.25 | 0.33 | 0.31 | 0.28 |
August 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,319,000K
+ $1,790,000K
+ $5,851,000K)
÷ $26,953,000K
= 0.33
The quick ratio of Walgreens Boots Alliance Inc has shown fluctuation over the past five years. In the most recent fiscal year ending on August 31, 2024, the quick ratio was 0.33, indicating that for every $1 of current liabilities, the company had $0.33 of quick assets readily available to cover those obligations.
Comparing this to the previous years, we observe a trend of improvement in liquidity as the quick ratio has gradually increased from 0.25 in 2023 to 0.33 in 2024. This suggests that the company has become more efficient in meeting its short-term obligations with its liquid assets.
However, it's important to note that the quick ratio remains relatively low, indicating a potential liquidity risk. Further analysis of the composition and quality of the quick assets, as well as the nature of the current liabilities, would provide a more in-depth understanding of the company's liquidity position.
Peer comparison
Aug 31, 2024