Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Walgreens Boots Alliance Inc., liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Walgreens Boots Alliance Inc. current ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Walgreens Boots Alliance Inc. quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Walgreens Boots Alliance Inc. cash ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Current Ratio
Walgreens Boots Alliance Inc., current ratio calculation, comparison to benchmarks
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Costco Wholesale Corp. | 1.01 | 1.02 | — | — | — | — | |
| Target Corp. | 0.83 | — | — | — | — | — | |
| Walmart Inc. | 0.80 | — | — | — | — | — | |
| Current Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.85 | — | — | — | — | — | |
| Current Ratio, Industry | |||||||
| Consumer Staples | 0.79 | — | — | — | — | — | |
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 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Walgreens Boots Alliance Inc. current ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Quick Ratio
Walgreens Boots Alliance Inc., quick ratio calculation, comparison to benchmarks
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 1,023) | 785) | 3,301) | 9,807) | 3,000) | 2,646) | |
| Accounts receivable, net | 7,226) | 6,573) | 6,528) | 6,260) | 6,849) | 3,218) | |
| Total quick assets | 8,249) | 7,358) | 9,829) | 16,067) | 9,849) | 5,864) | |
| Current liabilities | 25,769) | 21,667) | 18,547) | 17,013) | 16,557) | 8,895) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.32 | 0.34 | 0.53 | 0.94 | 0.59 | 0.66 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Costco Wholesale Corp. | 0.47 | 0.45 | — | — | — | — | |
| Target Corp. | 0.18 | — | — | — | — | — | |
| Walmart Inc. | 0.18 | — | — | — | — | — | |
| Quick Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.24 | — | — | — | — | — | |
| Quick Ratio, Industry | |||||||
| Consumer Staples | 0.36 | — | — | — | — | — | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 8,249 ÷ 25,769 = 0.32
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Walgreens Boots Alliance Inc. quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Cash Ratio
Walgreens Boots Alliance Inc., cash ratio calculation, comparison to benchmarks
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 1,023) | 785) | 3,301) | 9,807) | 3,000) | 2,646) | |
| Total cash assets | 1,023) | 785) | 3,301) | 9,807) | 3,000) | 2,646) | |
| Current liabilities | 25,769) | 21,667) | 18,547) | 17,013) | 16,557) | 8,895) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.04 | 0.04 | 0.18 | 0.58 | 0.18 | 0.30 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Costco Wholesale Corp. | 0.41 | 0.36 | — | — | — | — | |
| Target Corp. | 0.10 | — | — | — | — | — | |
| Walmart Inc. | 0.10 | — | — | — | — | — | |
| Cash Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.16 | — | — | — | — | — | |
| Cash Ratio, Industry | |||||||
| Consumer Staples | 0.23 | — | — | — | — | — | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 1,023 ÷ 25,769 = 0.04
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Walgreens Boots Alliance Inc. cash ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |