Walgreens Boots Alliance Inc (WBA)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -6,809,000 | 657,000 | -4,359,000 | -4,728,000 | -4,534,000 | -4,293,000 | 4,706,000 | 6,552,000 | 8,385,000 | 8,435,000 | 4,115,000 | 3,547,000 | -44,000 | 2,000 | 1,424,000 | 1,504,000 | 4,475,000 | 4,787,000 | 5,208,000 | 6,225,000 |
| Interest expense (ttm) | US$ in thousands | 565,000 | 568,000 | 579,000 | 529,000 | 464,000 | 423,000 | 399,000 | 382,000 | 819,000 | 856,000 | 906,000 | 968,000 | 571,000 | 590,000 | 620,000 | 591,000 | 630,000 | 655,000 | 650,000 | 688,000 |
| Interest coverage | -12.05 | 1.16 | -7.53 | -8.94 | -9.77 | -10.15 | 11.79 | 17.15 | 10.24 | 9.85 | 4.54 | 3.66 | -0.08 | 0.00 | 2.30 | 2.54 | 7.10 | 7.31 | 8.01 | 9.05 |
February 29, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-6,809,000K ÷ $565,000K
= -12.05
Interest coverage ratio is a financial metric used to assess a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations. Conversely, a lower ratio may suggest potential financial distress.
Analyzing the historical interest coverage ratios of Walgreens Boots Alliance Inc, we observe significant fluctuations over the period covered. The ratios have ranged from negative values to positive values, indicating variability in the company's ability to cover its interest expenses.
The interest coverage ratio was particularly low in some periods, such as -12.05 (Feb 29, 2024), -7.53 (Aug 31, 2023), -8.94 (May 31, 2023), -9.77 (Feb 28, 2023), and -10.15 (Nov 30, 2022). These negative ratios suggest that the company's earnings were insufficient to cover its interest payments during these periods, raising concerns about its financial health and ability to service its debt.
In contrast, there were instances of more favorable interest coverage ratios, such as 17.15 (Nov 30, 2022), 11.79 (Aug 31, 2022), and 10.24 (May 31, 2022). These higher ratios indicate a stronger ability to meet interest obligations.
Overall, it is essential for investors and stakeholders to closely monitor Walgreens Boots Alliance Inc's interest coverage ratio trends to assess its financial stability and debt repayment capacity. Further analysis of the company's financial performance and debt management strategies may provide insights into its ability to address the fluctuations in the interest coverage ratio and mitigate potential risks associated with its debt obligations.
Peer comparison
Feb 29, 2024
See also:
Walgreens Boots Alliance Inc Interest Coverage (Quarterly Data)