Name: Walgreens Boots Alliance Inc. (NASDAQ:WBA) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Download chart

Walgreens Boots Alliance Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Aug 31, 2019	Aug 31, 2018	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014
Short-term debt	5,738)	1,966)	251)	323)	1,068)	774)
Trade accounts payable	14,341)	13,566)	12,494)	11,000)	10,088)	4,315)
Accrued expenses and other liabilities	5,474)	5,862)	5,473)	5,484)	5,225)	3,701)
Income taxes	216)	273)	329)	206)	176)	105)
Current liabilities	25,769)	21,667)	18,547)	17,013)	16,557)	8,895)
Long-term debt	11,098)	12,431)	12,684)	18,705)	13,315)	3,736)
Deferred income taxes	1,785)	1,815)	2,281)	2,644)	3,538)	1,048)
Other non-current liabilities	4,795)	5,522)	4,223)	4,045)	4,072)	2,942)
Non-current liabilities	17,678)	19,768)	19,188)	25,394)	20,925)	7,726)
Total liabilities	43,447)	41,435)	37,735)	42,407)	37,482)	16,621)
Preferred stock $.01 par value; none issued	—)	—)	—)	—)	—)	—)
Common stock $.01 par value	12)	12)	12)	12)	12)	80)
Paid-in capital	10,639)	10,493)	10,339)	10,111)	9,953)	1,172)
Employee stock loan receivable	—)	—)	—)	(1)	(2)	(5)
Retained earnings	35,815)	33,551)	30,137)	27,684)	25,089)	22,229)
Accumulated other comprehensive income (loss)	(3,897)	(3,002)	(3,051)	(2,992)	(214)	178)
Treasury stock, at cost	(19,057)	(15,047)	(9,971)	(4,934)	(3,977)	(3,197)
Total Walgreens Boots Alliance, Inc. shareholders’ equity	23,512)	26,007)	27,466)	29,880)	30,861)	20,457)
Noncontrolling interests	640)	682)	808)	401)	439)	104)
Total equity	24,152)	26,689)	28,274)	30,281)	31,300)	20,561)
Total liabilities and equity	67,599)	68,124)	66,009)	72,688)	68,782)	37,182)

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).

The financial position of the entity between 2014 and 2019 is characterized by a substantial increase in total liabilities and a fluctuating equity base, influenced heavily by aggressive share repurchases and a shift in debt maturity profiles.

Current Liabilities and Short-Term Obligations: Current liabilities grew consistently from 8,895 million USD in 2014 to 25,769 million USD in 2019. This increase was primarily driven by a significant rise in trade accounts payable, which more than tripled from 4,315 million USD in 2014 to 14,341 million USD by 2019. Additionally, a sharp escalation in short-term debt is observed in the final two years of the period, rising from 1,966 million USD in 2018 to 5,738 million USD in 2019, indicating a shift toward shorter-term financing.
Non-Current Liabilities and Long-Term Debt: Non-current liabilities peaked in 2016 at 25,394 million USD before trending downward to 17,678 million USD in 2019. This trend is closely mirrored by long-term debt, which surged from 3,736 million USD in 2014 to a peak of 18,705 million USD in 2016, subsequently declining to 11,098 million USD by 2019. This suggests a period of aggressive long-term borrowing followed by a strategic deleveraging of long-term obligations.
Total Liability Trends: Total liabilities experienced an overall upward trajectory, moving from 16,621 million USD in 2014 to 43,447 million USD in 2019. The growth in total liabilities was most pronounced between 2014 and 2015, where obligations increased by approximately 125% in a single fiscal year.
Stockholders' Equity and Capital Allocation: Total equity peaked in 2015 at 31,300 million USD and subsequently declined to 24,152 million USD by 2019. This decline occurred despite a strong and consistent increase in retained earnings, which grew from 22,229 million USD in 2014 to 35,815 million USD in 2019. The erosion of total equity is attributed to a massive increase in treasury stock, which rose from a cost of 3,197 million USD in 2014 to 19,057 million USD in 2019, reflecting an aggressive share buyback strategy.
Other Equity Components: Accumulated other comprehensive income shifted from a positive 178 million USD in 2014 to a significant negative position of 3,897 million USD by 2019, indicating substantial unrealized losses over the period. Noncontrolling interests remained relatively stable, fluctuating between 104 million USD and 808 million USD.

Overall, the data reveals a financial strategy that balanced organic growth in retained earnings with significant capital returns to shareholders through treasury stock acquisitions, while simultaneously transitioning from long-term debt reliance toward increased short-term liabilities and trade credit.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?