Walgreens Boots Alliance Inc (WBA)
Financial leverage ratio
| Aug 31, 2024 | May 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 81,037,000 | 82,985,000 | 84,207,000 | 97,823,000 | 96,628,000 | 98,605,000 | 100,479,000 | 92,875,000 | 90,124,000 | 92,759,000 | 92,683,000 | 96,507,000 | 81,285,000 | 91,920,000 | 90,920,000 | 89,167,000 | 87,174,000 | 86,444,000 | 90,003,000 | 90,807,000 |
| Total stockholders’ equity | US$ in thousands | 10,445,000 | 13,642,000 | 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 |
| Financial leverage ratio | 7.76 | 6.08 | 6.24 | 5.02 | 4.83 | 4.68 | 4.74 | 4.51 | 3.57 | 3.53 | 3.47 | 3.67 | 3.47 | 4.16 | 4.31 | 4.45 | 4.22 | 4.17 | 3.79 | 3.84 |
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 fluctuations over the past few years, ranging from 3.47 to 7.76. The ratio measures the company's level of debt in relation to its equity, indicating its dependency on debt financing. A higher ratio suggests higher financial risk and potential for volatility in earnings due to interest expenses.
Analyzing the trend, the company's leverage ratio has been increasing since November 2021, reaching a peak of 7.76 in August 2024. This substantial increase could signal a higher reliance on debt to finance operations or investments. However, it's important to note that a high leverage ratio can also indicate potential growth opportunities and strategic investments.
Overall, the upward trend in the financial leverage ratio warrants further investigation into the company's debt management strategies, debt levels, and overall financial health to ensure sustainable growth and long-term stability.
Peer comparison
Aug 31, 2024
See also:
Walgreens Boots Alliance Inc Financial Leverage (Quarterly Data)