Walgreens Boots Alliance Inc (WBA)
Debt-to-equity ratio
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 7,535,000 | 7,585,000 | 8,145,000 | 8,841,000 | 8,820,000 | 7,789,000 | 10,615,000 | 10,670,000 | 11,203,000 | 11,199,000 | 7,675,000 | 7,732,000 | 10,998,000 | 10,973,000 | 12,203,000 | 12,111,000 | 10,625,000 | 10,628,000 | 11,098,000 | 12,127,000 |
| Total stockholders’ equity | US$ in thousands | 13,484,000 | 19,481,000 | 20,020,000 | 21,063,000 | 21,192,000 | 20,576,000 | 25,275,000 | 26,253,000 | 26,702,000 | 26,263,000 | 23,419,000 | 22,101,000 | 21,112,000 | 20,059,000 | 20,637,000 | 20,736,000 | 23,720,000 | 23,661,000 | 23,512,000 | 24,133,000 |
| Debt-to-equity ratio | 0.56 | 0.39 | 0.41 | 0.42 | 0.42 | 0.38 | 0.42 | 0.41 | 0.42 | 0.43 | 0.33 | 0.35 | 0.52 | 0.55 | 0.59 | 0.58 | 0.45 | 0.45 | 0.47 | 0.50 |
February 29, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $7,535,000K ÷ $13,484,000K
= 0.56
The debt-to-equity ratio of Walgreens Boots Alliance Inc has shown some fluctuations over the past several quarters. The ratio, which indicates the proportion of debt relative to equity in the company's capital structure, ranged from a low of 0.33 to a high of 0.59 during the period analyzed.
Generally, a lower debt-to-equity ratio is considered favorable as it implies that the company relies less on debt financing and has a stronger equity base. In this context, the company's ratios fluctuated within a moderate range, with the lowest ratio observed in Q3 of 2021 at 0.33 and the highest at 0.59 in Q3 of 2020.
It is important to note that a decreasing trend in the debt-to-equity ratio could indicate that the company is reducing its reliance on debt to finance its operations, while an increasing trend may suggest a higher level of leverage that could bring increased financial risk.
Overall, the fluctuations in Walgreens Boots Alliance's debt-to-equity ratio over the period analyzed may reflect changes in its capital structure and financial strategy, which should be further analyzed in conjunction with other financial metrics to assess the company's overall financial health and risk profile.
Peer comparison
Feb 29, 2024
See also:
Walgreens Boots Alliance Inc Debt to Equity (Quarterly Data)