Stock Analysis on Net
Stock Analysis on Net

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

This company has been moved to the archive! The financial data has not been updated since July 9, 2020.

Adjusted Financial Ratios

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Adjusted Financial Ratios (Summary)

Walgreens Boots Alliance Inc., adjusted financial ratios

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Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Activity Ratio
Total Asset Turnover
Reported 2.02 1.93 1.79 1.61 1.50 2.05
Adjusted 1.40 1.34 1.24 1.14 1.02 1.14
Liquidity Ratio
Current Ratio
Reported 0.73 0.82 1.07 1.52 1.19 1.38
Adjusted 0.85 0.97 1.24 1.70 1.35 1.65
Solvency Ratios
Debt to Equity
Reported 0.72 0.55 0.47 0.64 0.47 0.22
Adjusted 1.45 1.27 1.14 1.30 1.18 1.32
Debt to Capital
Reported 0.42 0.36 0.32 0.39 0.32 0.18
Adjusted 0.59 0.56 0.53 0.56 0.54 0.57
Financial Leverage
Reported 2.88 2.62 2.40 2.43 2.23 1.82
Adjusted 3.24 3.03 2.78 2.87 2.70 2.78
Profitability Ratios
Net Profit Margin
Reported 2.91% 3.82% 3.45% 3.56% 4.08% 2.53%
Adjusted 2.56% 3.67% 3.43% 0.99% 3.94% 3.54%
Return on Equity (ROE)
Reported 16.94% 19.32% 14.85% 13.97% 13.67% 9.44%
Adjusted 11.66% 14.95% 11.81% 3.25% 10.87% 11.18%
Return on Assets (ROA)
Reported 5.89% 7.37% 6.18% 5.74% 6.14% 5.20%
Adjusted 3.60% 4.93% 4.25% 1.13% 4.03% 4.03%

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Walgreens Boots Alliance Inc. adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Walgreens Boots Alliance Inc. adjusted current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Walgreens Boots Alliance Inc. adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Walgreens Boots Alliance Inc. adjusted debt-to-capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Walgreens Boots Alliance Inc. adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Walgreens Boots Alliance Inc. adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Walgreens Boots Alliance Inc. adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Walgreens Boots Alliance Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Walgreens Boots Alliance Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

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Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Reported
Selected Financial Data (US$ in millions)
Sales 136,866 131,537 118,214 117,351 103,444 76,392
Total assets 67,598 68,124 66,009 72,688 68,782 37,182
Activity Ratio
Total asset turnover1 2.02 1.93 1.79 1.61 1.50 2.05
Adjusted
Selected Financial Data (US$ in millions)
Sales 136,866 131,537 118,214 117,351 103,444 76,392
Adjusted total assets2 97,521 97,823 95,361 103,134 101,257 67,054
Activity Ratio
Adjusted total asset turnover3 1.40 1.34 1.24 1.14 1.02 1.14

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

1 2019 Calculation
Total asset turnover = Sales ÷ Total assets
= 136,866 ÷ 67,598 = 2.02

2 Adjusted total assets. See details »

3 2019 Calculation
Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 136,866 ÷ 97,521 = 1.40

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Walgreens Boots Alliance Inc. adjusted total asset turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Adjusted Current Ratio

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Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Reported
Selected Financial Data (US$ in millions)
Current assets 18,700 17,846 19,753 25,883 19,657 12,242
Current liabilities 25,769 21,667 18,547 17,013 16,557 8,895
Liquidity Ratio
Current ratio1 0.73 0.82 1.07 1.52 1.19 1.38
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 21,995 20,921 22,911 28,849 22,329 14,715
Current liabilities 25,769 21,667 18,547 17,013 16,557 8,895
Liquidity Ratio
Adjusted current ratio3 0.85 0.97 1.24 1.70 1.35 1.65

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

1 2019 Calculation
Current ratio = Current assets ÷ Current liabilities
= 18,700 ÷ 25,769 = 0.73

2 Adjusted current assets. See details »

3 2019 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 21,995 ÷ 25,769 = 0.85

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Walgreens Boots Alliance Inc. adjusted current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Equity

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Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Reported
Selected Financial Data (US$ in millions)
Total debt 16,836 14,397 12,935 19,028 14,383 4,510
Total Walgreens Boots Alliance, Inc. shareholders’ equity 23,512 26,007 27,466 29,880 30,861 20,457
Solvency Ratio
Debt to equity1 0.72 0.55 0.47 0.64 0.47 0.22
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 43,464 41,021 39,129 46,508 44,186 31,909
Adjusted total equity3 30,068 32,264 34,306 35,888 37,513 24,157
Solvency Ratio
Adjusted debt to equity4 1.45 1.27 1.14 1.30 1.18 1.32

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

1 2019 Calculation
Debt to equity = Total debt ÷ Total Walgreens Boots Alliance, Inc. shareholders’ equity
= 16,836 ÷ 23,512 = 0.72

2 Adjusted total debt. See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 43,464 ÷ 30,068 = 1.45

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Walgreens Boots Alliance Inc. adjusted debt-to-equity ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Debt to Capital

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Reported
Selected Financial Data (US$ in millions)
Total debt 16,836 14,397 12,935 19,028 14,383 4,510
Total capital 40,348 40,404 40,401 48,908 45,244 24,967
Solvency Ratio
Debt to capital1 0.42 0.36 0.32 0.39 0.32 0.18
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 43,464 41,021 39,129 46,508 44,186 31,909
Adjusted total capital3 73,532 73,285 73,435 82,396 81,699 56,066
Solvency Ratio
Adjusted debt to capital4 0.59 0.56 0.53 0.56 0.54 0.57

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

1 2019 Calculation
Debt to capital = Total debt ÷ Total capital
= 16,836 ÷ 40,348 = 0.42

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2019 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 43,464 ÷ 73,532 = 0.59

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Walgreens Boots Alliance Inc. adjusted debt-to-capital ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Adjusted Financial Leverage

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Reported
Selected Financial Data (US$ in millions)
Total assets 67,598 68,124 66,009 72,688 68,782 37,182
Total Walgreens Boots Alliance, Inc. shareholders’ equity 23,512 26,007 27,466 29,880 30,861 20,457
Solvency Ratio
Financial leverage1 2.88 2.62 2.40 2.43 2.23 1.82
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 97,521 97,823 95,361 103,134 101,257 67,054
Adjusted total equity3 30,068 32,264 34,306 35,888 37,513 24,157
Solvency Ratio
Adjusted financial leverage4 3.24 3.03 2.78 2.87 2.70 2.78

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

1 2019 Calculation
Financial leverage = Total assets ÷ Total Walgreens Boots Alliance, Inc. shareholders’ equity
= 67,598 ÷ 23,512 = 2.88

2 Adjusted total assets. See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 97,521 ÷ 30,068 = 3.24

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Walgreens Boots Alliance Inc. adjusted financial leverage ratio increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Net Profit Margin

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Walgreens Boots Alliance, Inc. 3,982 5,024 4,078 4,173 4,220 1,932
Sales 136,866 131,537 118,214 117,351 103,444 76,392
Profitability Ratio
Net profit margin1 2.91% 3.82% 3.45% 3.56% 4.08% 2.53%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 3,507 4,825 4,052 1,165 4,077 2,701
Sales 136,866 131,537 118,214 117,351 103,444 76,392
Profitability Ratio
Adjusted net profit margin3 2.56% 3.67% 3.43% 0.99% 3.94% 3.54%

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

1 2019 Calculation
Net profit margin = 100 × Net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Sales
= 100 × 3,982 ÷ 136,866 = 2.91%

2 Adjusted net earnings. See details »

3 2019 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales
= 100 × 3,507 ÷ 136,866 = 2.56%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Walgreens Boots Alliance Inc. adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Return on Equity (ROE)

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Walgreens Boots Alliance, Inc. 3,982 5,024 4,078 4,173 4,220 1,932
Total Walgreens Boots Alliance, Inc. shareholders’ equity 23,512 26,007 27,466 29,880 30,861 20,457
Profitability Ratio
ROE1 16.94% 19.32% 14.85% 13.97% 13.67% 9.44%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 3,507 4,825 4,052 1,165 4,077 2,701
Adjusted total equity3 30,068 32,264 34,306 35,888 37,513 24,157
Profitability Ratio
Adjusted ROE4 11.66% 14.95% 11.81% 3.25% 10.87% 11.18%

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

1 2019 Calculation
ROE = 100 × Net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Total Walgreens Boots Alliance, Inc. shareholders’ equity
= 100 × 3,982 ÷ 23,512 = 16.94%

2 Adjusted net earnings. See details »

3 Adjusted total equity. See details »

4 2019 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total equity
= 100 × 3,507 ÷ 30,068 = 11.66%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Walgreens Boots Alliance Inc. adjusted ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Return on Assets (ROA)

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Walgreens Boots Alliance, Inc. 3,982 5,024 4,078 4,173 4,220 1,932
Total assets 67,598 68,124 66,009 72,688 68,782 37,182
Profitability Ratio
ROA1 5.89% 7.37% 6.18% 5.74% 6.14% 5.20%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net earnings2 3,507 4,825 4,052 1,165 4,077 2,701
Adjusted total assets3 97,521 97,823 95,361 103,134 101,257 67,054
Profitability Ratio
Adjusted ROA4 3.60% 4.93% 4.25% 1.13% 4.03% 4.03%

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

1 2019 Calculation
ROA = 100 × Net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Total assets
= 100 × 3,982 ÷ 67,598 = 5.89%

2 Adjusted net earnings. See details »

3 Adjusted total assets. See details »

4 2019 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 3,507 ÷ 97,521 = 3.60%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Walgreens Boots Alliance Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.