Microsoft Excel LibreOffice Calc

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

Analysis of Liquidity Ratios

Beginner level

Liquidity ratios measure the company’s ability to meet its short-term obligations.

Liquidity Ratios (Summary)

Walgreens Boots Alliance Inc., liquidity ratios

Microsoft Excel LibreOffice Calc
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Current ratio 0.73 0.82 1.07 1.52 1.19 1.38
Quick ratio 0.32 0.34 0.53 0.94 0.59 0.66
Cash ratio 0.04 0.04 0.18 0.58 0.18 0.30

Based on: 10-K (filing date: 2019-10-28), 10-K (filing date: 2018-10-11), 10-K (filing date: 2017-10-25), 10-K (filing date: 2016-10-20), 10-K (filing date: 2015-10-28), 10-K (filing date: 2014-10-20).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Walgreens Boots Alliance Inc.’s 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.’s 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.’s 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

Microsoft Excel LibreOffice Calc
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
CVS Health Corp. 0.94 1.03 1.02 1.18 1.31 —
Current Ratio, Sector
Food & Drug Retailers 0.87 0.96 1.04 1.32 1.26 —
Current Ratio, Industry
Consumer Services 0.94 0.98 0.98 1.05 1.11 —

Based on: 10-K (filing date: 2019-10-28), 10-K (filing date: 2018-10-11), 10-K (filing date: 2017-10-25), 10-K (filing date: 2016-10-20), 10-K (filing date: 2015-10-28), 10-K (filing date: 2014-10-20).

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.’s current ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Quick Ratio

Walgreens Boots Alliance Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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
CVS Health Corp. 0.52 0.55 0.49 0.60 0.62 —
Quick Ratio, Sector
Food & Drug Retailers 0.45 0.48 0.50 0.73 0.61 —
Quick Ratio, Industry
Consumer Services 0.50 0.49 0.47 0.50 0.50 —

Based on: 10-K (filing date: 2019-10-28), 10-K (filing date: 2018-10-11), 10-K (filing date: 2017-10-25), 10-K (filing date: 2016-10-20), 10-K (filing date: 2015-10-28), 10-K (filing date: 2014-10-20).

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.’s quick ratio deteriorated from 2017 to 2018 and from 2018 to 2019.

Cash Ratio

Walgreens Boots Alliance Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
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
CVS Health Corp. 0.15 0.15 0.06 0.13 0.11 —
Cash Ratio, Sector
Food & Drug Retailers 0.11 0.11 0.10 0.31 0.14 —
Cash Ratio, Industry
Consumer Services 0.28 0.28 0.27 0.30 0.29 —

Based on: 10-K (filing date: 2019-10-28), 10-K (filing date: 2018-10-11), 10-K (filing date: 2017-10-25), 10-K (filing date: 2016-10-20), 10-K (filing date: 2015-10-28), 10-K (filing date: 2014-10-20).

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.’s cash ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019.