Walgreens Boots Alliance Inc (WBA)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 67,598,000 | 68,586,000 |
| 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 |
| Financial leverage ratio | 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 | 2.88 | 2.84 |
February 29, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $84,207,000K ÷ $13,484,000K
= 6.24
The financial leverage ratio of Walgreens Boots Alliance Inc has shown some fluctuations over the past few quarters. The ratio increased from 2.84 in August 2019 to a peak of 6.24 in February 2024. This indicates that the company has been relying more on debt to finance its operations and growth.
Although the ratio has been trending upwards overall, there have been periods of slight decline, such as in August 2022 and November 2022. This suggests that the company may have made efforts to reduce its level of debt during these periods.
A higher financial leverage ratio reflects a higher level of debt relative to the company's equity, which can indicate increased financial risk. Investors and creditors may closely monitor this ratio to assess the company's ability to meet its financial obligations and manage its debt effectively.
Overall, the increasing trend in Walgreens Boots Alliance Inc's financial leverage ratio signals a growing reliance on debt financing, which could potentially impact the company's financial stability and risk profile in the future.
Peer comparison
Feb 29, 2024
See also:
Walgreens Boots Alliance Inc Financial Leverage (Quarterly Data)