Walgreens Boots Alliance Inc (WBA)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.09 | 0.08 | 0.08 | 0.09 | 0.09 | 0.08 | 0.12 | 0.12 | 0.12 | 0.12 | 0.09 | 0.08 | 0.12 | 0.12 | 0.14 | 0.14 | 0.12 | 0.12 | 0.16 | 0.18 |
| Debt-to-capital ratio | 0.36 | 0.28 | 0.29 | 0.30 | 0.29 | 0.27 | 0.30 | 0.29 | 0.30 | 0.30 | 0.25 | 0.26 | 0.34 | 0.35 | 0.37 | 0.37 | 0.31 | 0.31 | 0.32 | 0.33 |
| 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 |
| 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 |
From the provided solvency ratios for Walgreens Boots Alliance Inc over the past few quarters, we can observe the following trends:
1. Debt-to-assets ratio:
- The debt-to-assets ratio has remained relatively stable, fluctuating between 0.08 to 0.16 over the past two years.
- This ratio indicates that approximately 8% to 16% of the company's total assets are financed by debt.
2. Debt-to-capital ratio:
- The debt-to-capital ratio has shown some variability, ranging from 0.25 to 0.37 in the last 21 months.
- This ratio highlights the proportion of total capital that is funded by debt, with fluctuations indicating changes in the company's capital structure.
3. Debt-to-equity ratio:
- The debt-to-equity ratio has exhibited some volatility, moving between 0.33 to 0.59 since November 2019.
- This ratio reflects the extent to which the company relies on debt financing relative to shareholders' equity.
4. Financial leverage ratio:
- The financial leverage ratio has displayed fluctuations between 2.84 to 6.24 over the past two years.
- This ratio illustrates the company's reliance on debt to finance its operations and investments, with a higher ratio indicating increased financial leverage.
Overall, it appears that Walgreens Boots Alliance Inc has maintained a manageable level of debt relative to its assets, capital, and equity. However, the fluctuations in these solvency ratios suggest potential changes in the company's financing strategy and capital structure over the analyzed period. An in-depth analysis of the reasons behind these fluctuations and their implications for the company's financial health would be necessary for a comprehensive assessment of its solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.
Based on the data provided for Walgreens Boots Alliance Inc, the interest coverage ratio fluctuated significantly over the periods examined. The company experienced negative interest coverage ratios in several periods, indicating that its earnings were insufficient to cover its interest expenses. This raises concerns about the company's ability to meet its debt obligations comfortably during those periods.
The interest coverage ratio improved over some periods, rising above 1, indicating the company generated enough earnings to cover its interest payments. However, the ratio remained relatively volatile, with fluctuations between positive and negative values.
Overall, the inconsistent performance of Walgreens Boots Alliance Inc's interest coverage ratio suggests that the company faced challenges in consistently generating earnings to cover its interest expenses. Investors and stakeholders may view this fluctuation as a risk factor, highlighting the importance of closely monitoring the company's financial performance and debt management strategies.
See also:
Walgreens Boots Alliance Inc Solvency Ratios (Quarterly Data)