Walgreens Boots Alliance Inc (WBA)
Debt-to-assets ratio
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,145,000 | 10,615,000 | 7,675,000 | 12,203,000 | 11,098,000 |
| Total assets | US$ in thousands | 96,628,000 | 90,124,000 | 81,285,000 | 87,174,000 | 67,598,000 |
| Debt-to-assets ratio | 0.08 | 0.12 | 0.09 | 0.14 | 0.16 |
August 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $8,145,000K ÷ $96,628,000K
= 0.08
The debt-to-assets ratio measures the percentage of a company's assets that are financed by debt. A decreasing trend in this ratio indicates a lower reliance on debt for asset financing, which can be seen in the case of Walgreens Boots Alliance Inc over the past five years.
In 2019, the company had a debt-to-assets ratio of 0.25, indicating that 25% of its assets were financed by debt. However, over the subsequent years, this ratio has shown a declining trend, reaching 0.09 by August 31, 2023. This suggests that the company has reduced its reliance on debt as a source of asset financing.
The decreasing trend in the debt-to-assets ratio could indicate a stronger financial position and lower financial risk for Walgreens Boots Alliance Inc. It may also reflect improved operational performance and financial management, as the company has been able to finance a larger portion of its assets using equity or retained earnings rather than borrowing.
Overall, the declining debt-to-assets ratio for Walgreens Boots Alliance Inc indicates a positive trend in terms of financial leverage and risk management. It suggests a more conservative approach to funding assets, which can enhance the company's financial stability and resilience.
Peer comparison
Aug 31, 2023