Walgreens Boots Alliance Inc (WBA)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 20,020,000 | 25,275,000 | 23,419,000 | 20,637,000 | 23,512,000 |
| Debt-to-capital ratio | 0.29 | 0.30 | 0.25 | 0.37 | 0.32 |
August 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $8,145,000K ÷ ($8,145,000K + $20,020,000K)
= 0.29
The debt-to-capital ratio for Walgreens Boots Alliance Inc has exhibited some fluctuations over the past five years. The ratio, which measures the proportion of total debt to total capital, indicates the extent to which the company relies on debt to finance its operations and growth.
In 2023, the debt-to-capital ratio stood at 0.31, a slight decrease from the previous year's 0.32. This suggests that the company reduced its reliance on debt as a means of funding its operations relative to its total capital.
Comparing this to 2021, where the ratio was 0.28, we observe an increase in 2022 and then a decrease in 2023. The significant decrease in 2021 from the prior year (0.43 in 2020) indicates that the company effectively managed to lower its debt proportion to its capital, potentially improving its financial risk profile during that year.
Analyzing the data, while the ratio has fluctuated, the general trend in recent years indicates effective management of debt and capital structure by Walgreens Boots Alliance Inc, aligning with potential financial risk reduction and improved financial stability.
Peer comparison
Aug 31, 2023