Current Ratio
since 2005
Calculation
Walgreens Boots Alliance Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Aug 31, 2019 | 0.73 | = | 18,700) | ÷ | 25,769) |
| Aug 31, 2018 | 0.82 | = | 17,846) | ÷ | 21,667) |
| Aug 31, 2017 | 1.07 | = | 19,753) | ÷ | 18,547) |
| Aug 31, 2016 | 1.52 | = | 25,883) | ÷ | 17,013) |
| Aug 31, 2015 | 1.19 | = | 19,657) | ÷ | 16,557) |
| Aug 31, 2014 | 1.38 | = | 12,242) | ÷ | 8,895) |
| Aug 31, 2013 | 1.34 | = | 11,874) | ÷ | 8,883) |
| Aug 31, 2012 | 1.23 | = | 10,760) | ÷ | 8,722) |
| Aug 31, 2011 | 1.52 | = | 12,322) | ÷ | 8,083) |
| Aug 31, 2010 | 1.60 | = | 11,922) | ÷ | 7,433) |
| Aug 31, 2009 | 1.78 | = | 12,049) | ÷ | 6,769) |
| Aug 31, 2008 | 1.57 | = | 10,433) | ÷ | 6,644) |
| Aug 31, 2007 | 1.41 | = | 9,511) | ÷ | 6,744) |
| Aug 31, 2006 | 1.69 | = | 9,705) | ÷ | 5,755) |
| Aug 31, 2005 | 1.86 | = | 8,317) | ÷ | 4,481) |
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
An analysis of the liquidity position from 2005 to 2019 reveals a significant long-term deterioration in the ability to cover short-term obligations. While the period began with a strong liquidity cushion, the subsequent years show a progressive decline, culminating in a position where current liabilities exceed current assets.
- Current Asset Trends
- Current assets exhibited a general upward trajectory for the first decade, growing from 8,317 million US$ in 2005 to a peak of 25,883 million US$ in 2016. Following this peak, a downward trend emerged, with assets decreasing to 18,700 million US$ by 2019.
- Current Liability Trends
- Current liabilities demonstrated a consistent and accelerating increase over the analyzed period. From a baseline of 4,481 million US$ in 2005, liabilities rose steadily, with a notable surge after 2014. By 2019, current liabilities reached 25,769 million US$, representing a nearly six-fold increase from the 2005 level.
- Current Ratio Analysis
- The current ratio reflects a transition from a high liquidity state to a deficit state. Between 2005 and 2011, the ratio remained relatively healthy, fluctuating between 1.41 and 1.86. A period of volatility followed between 2012 and 2016, where the ratio dipped to 1.23 before recovering to 1.52. However, a sharp decline occurred after 2016, with the ratio falling below the critical 1.0 threshold in 2018 (0.82) and further deteriorating to 0.73 in 2019.
The convergence of declining current assets after 2016 and rapidly increasing current liabilities has resulted in a weakened short-term financial position. The final observed ratio of 0.73 indicates that the entity possessed only 73 cents of liquid assets for every dollar of short-term debt by August 31, 2019.
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Comparison to Competitors
Walgreens Boots Alliance Inc., current ratio, long-term trends, comparison to competitors
| Walgreens Boots Alliance Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Aug 31, 2019 | 0.73 | 1.01 | 0.83 | 0.80 |
| Aug 31, 2018 | 0.82 | 1.02 | 0.95 | 0.76 |
| Aug 31, 2017 | 1.07 | 0.99 | 0.94 | 0.86 |
| Aug 31, 2016 | 1.52 | 0.98 | 1.12 | 0.93 |
| Aug 31, 2015 | 1.19 | 1.05 | 1.20 | 0.97 |
| Aug 31, 2014 | 1.38 | 1.22 | 0.91 | 0.88 |
| Aug 31, 2013 | 1.34 | 1.19 | 1.17 | 0.83 |
| Aug 31, 2012 | 1.23 | 1.10 | 1.15 | 0.88 |
| Aug 31, 2011 | 1.52 | 1.14 | 1.71 | 0.89 |
| Aug 31, 2010 | 1.60 | 1.16 | 1.63 | 0.87 |
| Aug 31, 2009 | 1.78 | 1.11 | 1.66 | 0.88 |
| Aug 31, 2008 | 1.57 | 1.07 | 1.60 | 0.81 |
| Aug 31, 2007 | 1.41 | 1.09 | 1.32 | 0.90 |
| Aug 31, 2006 | 1.69 | 1.05 | 1.50 | 0.90 |
| Aug 31, 2005 | 1.86 | 1.22 | 1.69 | 0.90 |
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)
| Walgreens Boots Alliance Inc. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Aug 31, 2019 | 0.73 | 0.85 |
| Aug 31, 2018 | 0.82 | 0.83 |
| Aug 31, 2017 | 1.07 | 0.90 |
| Aug 31, 2016 | 1.52 | 0.97 |
| Aug 31, 2015 | 1.19 | 1.01 |
| Aug 31, 2014 | 1.38 | 0.94 |
| Aug 31, 2013 | 1.34 | 0.93 |
| Aug 31, 2012 | 1.23 | 0.96 |
| Aug 31, 2011 | 1.52 | 1.03 |
| Aug 31, 2010 | 1.60 | 1.02 |
| Aug 31, 2009 | 1.78 | 1.02 |
| Aug 31, 2008 | 1.57 | 0.96 |
| Aug 31, 2007 | 1.41 | 0.99 |
| Aug 31, 2006 | 1.69 | 1.00 |
| Aug 31, 2005 | 1.86 | 1.05 |
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)
| Walgreens Boots Alliance Inc. | Consumer Staples | |
|---|---|---|
| Aug 31, 2019 | 0.73 | 0.82 |
| Aug 31, 2018 | 0.82 | 0.87 |
| Aug 31, 2017 | 1.07 | 1.02 |
| Aug 31, 2016 | 1.52 | 1.04 |
| Aug 31, 2015 | 1.19 | 1.06 |
| Aug 31, 2014 | 1.38 | 0.97 |
| Aug 31, 2013 | 1.34 | 0.97 |
| Aug 31, 2012 | 1.23 | 0.99 |
| Aug 31, 2011 | 1.52 | 0.97 |
| Aug 31, 2010 | 1.60 | 1.01 |
| Aug 31, 2009 | 1.78 | 1.03 |
| Aug 31, 2008 | 1.57 | 0.98 |
| Aug 31, 2007 | 1.41 | 0.91 |
| Aug 31, 2006 | 1.69 | 1.04 |
| Aug 31, 2005 | 1.86 | 0.99 |
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).