Debt to Equity
since 2005
Calculation
Walgreens Boots Alliance Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total Walgreens Boots Alliance, Inc. shareholders’ equity1 | |
|---|---|---|---|---|---|
| Aug 31, 2019 | 0.72 | = | 16,836) | ÷ | 23,512) |
| Aug 31, 2018 | 0.55 | = | 14,397) | ÷ | 26,007) |
| Aug 31, 2017 | 0.47 | = | 12,935) | ÷ | 27,466) |
| Aug 31, 2016 | 0.64 | = | 19,028) | ÷ | 29,880) |
| Aug 31, 2015 | 0.47 | = | 14,383) | ÷ | 30,861) |
| Aug 31, 2014 | 0.22 | = | 4,510) | ÷ | 20,457) |
| Aug 31, 2013 | 0.26 | = | 5,047) | ÷ | 19,454) |
| Aug 31, 2012 | 0.30 | = | 5,392) | ÷ | 18,236) |
| Aug 31, 2011 | 0.16 | = | 2,409) | ÷ | 14,847) |
| Aug 31, 2010 | 0.17 | = | 2,401) | ÷ | 14,400) |
| Aug 31, 2009 | 0.16 | = | 2,351) | ÷ | 14,376) |
| Aug 31, 2008 | 0.11 | = | 1,420) | ÷ | 12,869) |
| Aug 31, 2007 | 0.08 | = | 879) | ÷ | 11,104) |
| Aug 31, 2006 | 0.00 | = | —) | ÷ | 10,116) |
| Aug 31, 2005 | 0.00 | = | —) | ÷ | 8,890) |
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 financial trajectory from 2005 to 2019 is characterized by a significant shift in capital structure, moving from a low-leverage position to a substantially more indebted profile. While shareholders' equity grew steadily for the first decade, a sharp increase in total debt starting in 2012, and accelerating in 2015, has fundamentally altered the balance between debt and equity financing.
- Total Debt Evolution
- Total debt remained relatively low and stable between 2007 and 2011, fluctuating between 879 million and 2.4 billion US$. A notable increase occurred in 2012, with debt rising to 5.39 billion US$. The most aggressive expansion of debt occurred in 2015 and 2016, where figures surged from 4.51 billion US$ to a peak of 19.03 billion US$. Although a reduction to 12.94 billion US$ was observed in 2017, the debt levels trended upward again, reaching 16.84 billion US$ by August 31, 2019.
- Shareholders' Equity Trends
- Shareholders' equity exhibited consistent growth for ten years, rising from 8.89 billion US$ in 2005 to a peak of 30.86 billion US$ in 2015. Following this peak, a steady downward trend is observed, with equity declining annually to 23.51 billion US$ by 2019. This contraction in equity, occurring simultaneously with rising debt levels, has compounded the increase in financial leverage.
- Debt to Equity Ratio Interpretation
- The debt to equity ratio reflects a transition from a conservative financial posture to a more leveraged one. From 2007 to 2011, the ratio remained below 0.20, indicating minimal reliance on borrowed funds relative to equity. Between 2012 and 2014, the ratio fluctuated between 0.22 and 0.30. A sharp escalation began in 2015, with the ratio climbing to 0.64 by 2016. After a brief dip to 0.47 in 2017, the ratio reached its highest point in the observed period at 0.72 in 2019, signaling a heightened reliance on debt financing and an increased risk profile.
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Comparison to Competitors
Walgreens Boots Alliance Inc., debt to equity, long-term trends, comparison to competitors
| Walgreens Boots Alliance Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Aug 31, 2019 | 0.72 | 0.45 | 1.00 | 0.80 |
| Aug 31, 2018 | 0.55 | 0.51 | 0.99 | 0.60 |
| Aug 31, 2017 | 0.47 | 0.62 | 1.16 | 0.59 |
| Aug 31, 2016 | 0.64 | 0.43 | 0.98 | 0.62 |
| Aug 31, 2015 | 0.47 | 0.58 | 0.91 | 0.62 |
| Aug 31, 2014 | 0.22 | 0.41 | 0.85 | 0.74 |
| Aug 31, 2013 | 0.26 | 0.46 | 1.07 | 0.71 |
| Aug 31, 2012 | 0.30 | 0.11 | 1.11 | 0.75 |
| Aug 31, 2011 | 0.16 | 0.18 | 1.02 | 0.73 |
| Aug 31, 2010 | 0.17 | 0.20 | 1.10 | 0.58 |
| Aug 31, 2009 | 0.16 | 0.23 | 1.37 | 0.65 |
| Aug 31, 2008 | 0.11 | 0.26 | 1.12 | 0.69 |
| Aug 31, 2007 | 0.08 | 0.26 | 0.64 | 0.63 |
| Aug 31, 2006 | 0.00 | 0.06 | 0.69 | 0.73 |
| Aug 31, 2005 | 0.00 | 0.09 | 0.73 | 0.64 |
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., debt to equity, long-term trends, comparison to sector (consumer staples distribution & retail)
| Walgreens Boots Alliance Inc. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Aug 31, 2019 | 0.72 | 0.77 |
| Aug 31, 2018 | 0.55 | 0.63 |
| Aug 31, 2017 | 0.47 | 0.66 |
| Aug 31, 2016 | 0.64 | 0.64 |
| Aug 31, 2015 | 0.47 | 0.65 |
| Aug 31, 2014 | 0.22 | 0.72 |
| Aug 31, 2013 | 0.26 | 0.74 |
| Aug 31, 2012 | 0.30 | 0.73 |
| Aug 31, 2011 | 0.16 | 0.71 |
| Aug 31, 2010 | 0.17 | 0.62 |
| Aug 31, 2009 | 0.16 | 0.71 |
| Aug 31, 2008 | 0.11 | 0.72 |
| Aug 31, 2007 | 0.08 | 0.60 |
| Aug 31, 2006 | 0.00 | 0.64 |
| Aug 31, 2005 | 0.00 | 0.59 |
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., debt to equity, long-term trends, comparison to industry (consumer staples)
| Walgreens Boots Alliance Inc. | Consumer Staples | |
|---|---|---|
| Aug 31, 2019 | 0.72 | 1.18 |
| Aug 31, 2018 | 0.55 | 1.11 |
| Aug 31, 2017 | 0.47 | 1.20 |
| Aug 31, 2016 | 0.64 | 1.09 |
| Aug 31, 2015 | 0.47 | 1.00 |
| Aug 31, 2014 | 0.22 | 0.96 |
| Aug 31, 2013 | 0.26 | 0.87 |
| Aug 31, 2012 | 0.30 | 0.83 |
| Aug 31, 2011 | 0.16 | 0.80 |
| Aug 31, 2010 | 0.17 | 0.74 |
| Aug 31, 2009 | 0.16 | 0.69 |
| Aug 31, 2008 | 0.11 | 0.68 |
| Aug 31, 2007 | 0.08 | 0.55 |
| Aug 31, 2006 | 0.00 | 0.52 |
| Aug 31, 2005 | 0.00 | 0.59 |
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).