Walgreens Boots Alliance Inc (WBA)

Solvency ratios

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
Debt-to-assets ratio 0.10 0.09 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
Debt-to-capital ratio 0.44 0.35 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
Debt-to-equity ratio 0.77 0.54 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
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

The solvency ratios of Walgreens Boots Alliance Inc, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, have fluctuated over the period analyzed.

The debt-to-assets ratio has generally remained relatively stable, ranging between 0.08 and 0.14, with a slight increase observed in the most recent period. This indicates that the company has maintained a conservative level of debt in relation to its total assets.

Similarly, the debt-to-capital ratio has shown fluctuations, with values ranging from 0.27 to 0.44. The ratio peaked in the most recent period, suggesting a higher level of debt relative to the company's capital structure. This may signify an increased reliance on debt financing.

The debt-to-equity ratio has also displayed variability, fluctuating between 0.33 and 0.77. This ratio hit its peak in the most recent period, indicating a higher proportion of debt compared to equity in the company's capital structure. A higher debt-to-equity ratio may imply higher financial risk and leverage.

The financial leverage ratio, which measures the extent of a company's financial leverage, has shown fluctuations between 3.47 and 7.76. The ratio peaked in the earlier periods and has since decreased, suggesting a reduction in the company's financial leverage over time.

Overall, while the company's solvency ratios have shown some fluctuations, it is essential to monitor trends over time to assess the impact of debt levels on the company's financial health and risk profile.

Coverage ratios

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
Interest coverage -14.36 -12.46 -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

The interest coverage ratio for Walgreens Boots Alliance Inc has shown significant fluctuations over the past few periods, ranging from negative values to positive values. A negative interest coverage ratio indicates that the company's operating income is insufficient to cover its interest expenses, posing a potential risk to its financial stability. In contrast, positive values suggest that the company is generating enough operating income to cover its interest obligations.

It is essential to note the irregularity in the interest coverage ratio, as it might indicate inconsistent financial performance and potentially volatile earnings for Walgreens Boots Alliance Inc. Investors and lenders should closely monitor the company's ability to meet its interest payments and assess the factors contributing to the fluctuations in the interest coverage ratio to determine the company's overall financial health and risk profile.

See also:

Walgreens Boots Alliance Inc Solvency Ratios (Quarterly Data)