Walgreens Boots Alliance Inc (WBA)
Debt-to-equity ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 8,044,000 | 8,145,000 | 10,615,000 | 7,675,000 | 12,203,000 |
| Total stockholders’ equity | US$ in thousands | 10,445,000 | 20,020,000 | 25,275,000 | 23,419,000 | 20,637,000 |
| Debt-to-equity ratio | 0.77 | 0.41 | 0.42 | 0.33 | 0.59 |
August 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $8,044,000K ÷ $10,445,000K
= 0.77
The debt-to-equity ratio of Walgreens Boots Alliance Inc has shown fluctuations over the past five years. In 2024, the ratio stands at 0.77, indicating that the company has increased its reliance on debt financing compared to the previous year. This suggests that a significant portion of the company's assets are financed through debt rather than equity.
In 2023 and 2022, the debt-to-equity ratio was relatively stable at 0.41 and 0.42 respectively, showing a balanced mix of debt and equity in the company's capital structure. This indicates a prudent approach to managing the company's financial obligations and maintaining a healthy level of leverage.
In 2021, the ratio decreased to 0.33, signaling a lower level of debt relative to equity compared to the previous year. This could indicate improved financial strength and decreased risk associated with debt obligations.
However, in 2020, the debt-to-equity ratio increased to 0.59, suggesting a higher proportion of debt compared to equity in the company's capital structure. This may raise concerns about the company's financial risk and its ability to meet debt obligations in the long term.
Overall, the trend in Walgreens Boots Alliance Inc's debt-to-equity ratio indicates fluctuations in its capital structure over the years, highlighting the importance of careful monitoring and management of debt levels to maintain a healthy financial position.
Peer comparison
Aug 31, 2024