Walgreens Boots Alliance Inc (WBA)
Financial leverage ratio
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 81,037,000 | 96,628,000 | 90,124,000 | 81,285,000 | 87,174,000 |
| Total stockholders’ equity | US$ in thousands | 10,445,000 | 20,020,000 | 25,275,000 | 23,419,000 | 20,637,000 |
| Financial leverage ratio | 7.76 | 4.83 | 3.57 | 3.47 | 4.22 |
August 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $81,037,000K ÷ $10,445,000K
= 7.76
The financial leverage ratio of Walgreens Boots Alliance Inc has shown significant variability over the past five years. As of August 31, 2024, the financial leverage ratio stood at 7.76, indicating a higher level of financial leverage compared to the previous years. This suggests that the company is relying more on debt to finance its operations and investments.
In comparison, the financial leverage ratio was lower in the prior years, with 4.83 in 2023, 3.57 in 2022, 3.47 in 2021, and 4.22 in 2020. This indicates that the company's debt levels have fluctuated over the period, possibly due to changes in capital structure, financing decisions, or strategic initiatives.
The increasing trend in the financial leverage ratio from 2020 to 2024 may raise concerns about the company's risk exposure to debt-related obligations and interest payments. Investors and stakeholders may closely monitor this ratio to assess the company's ability to manage its debt levels effectively and maintain financial stability in the long term.
Peer comparison
Aug 31, 2024