Stock Analysis on Net

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

$22.49

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

Current Ratio
since 2005

Microsoft Excel

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Calculation

Walgreens Boots Alliance Inc., current ratio, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).

1 US$ in millions


The analysis of the annual financial data reveals a mixed trend in liquidity and working capital management over the observed period.

Current assets
Current assets generally increased from 2005 through 2016, showing growth from $8,317 million in 2005 to a peak of $25,883 million in 2016. After 2016, the value of current assets declined to $18,700 million by 2019. This pattern indicates a period of expansion in short-term asset holdings followed by a contraction in the most recent years.
Current liabilities
Current liabilities steadily increased over the entire period, growing from $4,481 million in 2005 to $25,769 million in 2019. The increase was particularly sharp after 2013, with liabilities nearly tripling by 2019. This trend suggests an increasing reliance on short-term obligations or possibly growth in operational scale.
Current ratio
The current ratio, which measures the company’s ability to cover short-term liabilities with short-term assets, exhibited a overall declining trend. Starting at a healthy 1.86 in 2005, the ratio steadily fell, with some fluctuations, to a low of 0.73 in 2019. This decline below 1.0 from 2018 onwards indicates that current liabilities exceeded current assets, potentially signaling liquidity pressures or more aggressive working capital strategies in recent years.

In summary, the company experienced growth in current assets accompanied by rising liabilities up to 2016, but from 2017 onwards, a reduction in current assets combined with continuing growth in current liabilities resulted in a decreasing current ratio. This could imply increased short-term financial risk or changes in asset and liability management policies that warrant further investigation.


Comparison to Competitors

Walgreens Boots Alliance Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).


Comparison to Sector (Consumer Staples Distribution & Retail)

Walgreens Boots Alliance Inc., current ratio, long-term trends, comparison to sector (consumer staples distribution & retail)

Microsoft Excel

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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).


Comparison to Industry (Consumer Staples)

Walgreens Boots Alliance Inc., current ratio, long-term trends, comparison to industry (consumer staples)

Microsoft Excel

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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).