Stock Analysis on Net

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

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

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Walgreens Boots Alliance Inc., short-term (operating) activity ratios

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Turnover Ratios
Inventory turnover 11.44 10.53 10.01 9.77 8.82 9.02
Receivables turnover 18.94 20.01 18.11 18.75 15.10 23.74
Payables turnover 7.45 7.43 7.13 7.95 7.59 12.71
Working capital turnover 98.02 13.23 33.37 22.82
Average No. Days
Average inventory processing period 32 35 36 37 41 40
Add: Average receivable collection period 19 18 20 19 24 15
Operating cycle 51 53 56 56 65 55
Less: Average payables payment period 49 49 51 46 48 29
Cash conversion cycle 2 4 5 10 17 26

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Walgreens Boots Alliance Inc. inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Receivables turnover An activity ratio equal to revenue divided by receivables. Walgreens Boots Alliance Inc. receivables turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Walgreens Boots Alliance Inc. payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Walgreens Boots Alliance Inc. number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Walgreens Boots Alliance Inc. operating cycle improved from 2017 to 2018 and from 2018 to 2019.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Walgreens Boots Alliance Inc. cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019.

Inventory Turnover

Walgreens Boots Alliance Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Cost of sales 106,790 100,745 89,052 87,477 76,520 54,823
Inventories 9,333 9,565 8,899 8,956 8,678 6,076
Short-term Activity Ratio
Inventory turnover1 11.44 10.53 10.01 9.77 8.82 9.02
Benchmarks
Inventory Turnover, Competitors2
Costco Wholesale Corp. 11.66
Dollar General Corp. 4.35
Target Corp. 5.61
Walmart Inc. 8.70
Inventory Turnover, Sector
Consumer Staples Distribution & Retail 8.51
Inventory Turnover, Industry
Consumer Staples 7.42

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
Inventory turnover = Cost of sales ÷ Inventories
= 106,790 ÷ 9,333 = 11.44

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Walgreens Boots Alliance Inc. inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Receivables Turnover

Walgreens Boots Alliance Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Sales 136,866 131,537 118,214 117,351 103,444 76,392
Accounts receivable, net 7,226 6,573 6,528 6,260 6,849 3,218
Short-term Activity Ratio
Receivables turnover1 18.94 20.01 18.11 18.75 15.10 23.74
Benchmarks
Receivables Turnover, Competitors2
Costco Wholesale Corp. 97.30
Dollar General Corp.
Target Corp. 117.77
Walmart Inc. 81.22
Receivables Turnover, Sector
Consumer Staples Distribution & Retail 89.91
Receivables Turnover, Industry
Consumer Staples 34.71

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
Receivables turnover = Sales ÷ Accounts receivable, net
= 136,866 ÷ 7,226 = 18.94

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Walgreens Boots Alliance Inc. receivables turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Payables Turnover

Walgreens Boots Alliance Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Cost of sales 106,790 100,745 89,052 87,477 76,520 54,823
Trade accounts payable 14,341 13,566 12,494 11,000 10,088 4,315
Short-term Activity Ratio
Payables turnover1 7.45 7.43 7.13 7.95 7.59 12.71
Benchmarks
Payables Turnover, Competitors2
Costco Wholesale Corp. 11.38
Dollar General Corp. 7.47
Target Corp. 5.46
Walmart Inc. 8.19
Payables Turnover, Sector
Consumer Staples Distribution & Retail 8.31
Payables Turnover, Industry
Consumer Staples 7.11

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
Payables turnover = Cost of sales ÷ Trade accounts payable
= 106,790 ÷ 14,341 = 7.45

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Walgreens Boots Alliance Inc. payables turnover ratio increased from 2017 to 2018 and from 2018 to 2019.

Working Capital Turnover

Walgreens Boots Alliance Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
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
Less: Current liabilities 25,769 21,667 18,547 17,013 16,557 8,895
Working capital (7,069) (3,821) 1,206 8,870 3,100 3,347
 
Sales 136,866 131,537 118,214 117,351 103,444 76,392
Short-term Activity Ratio
Working capital turnover1 98.02 13.23 33.37 22.82
Benchmarks
Working Capital Turnover, Competitors2
Costco Wholesale Corp. 602.22
Dollar General Corp. 15.56
Target Corp.
Walmart Inc.
Working Capital Turnover, Sector
Consumer Staples Distribution & Retail
Working Capital Turnover, Industry
Consumer Staples

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
Working capital turnover = Sales ÷ Working capital
= 136,866 ÷ -7,069 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

Walgreens Boots Alliance Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data
Inventory turnover 11.44 10.53 10.01 9.77 8.82 9.02
Short-term Activity Ratio (no. days)
Average inventory processing period1 32 35 36 37 41 40
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Costco Wholesale Corp. 31
Dollar General Corp. 84
Target Corp. 65
Walmart Inc. 42
Average Inventory Processing Period, Sector
Consumer Staples Distribution & Retail 43
Average Inventory Processing Period, Industry
Consumer Staples 49

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 11.44 = 32

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Walgreens Boots Alliance Inc. number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019.

Average Receivable Collection Period

Walgreens Boots Alliance Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data
Receivables turnover 18.94 20.01 18.11 18.75 15.10 23.74
Short-term Activity Ratio (no. days)
Average receivable collection period1 19 18 20 19 24 15
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Costco Wholesale Corp. 4
Dollar General Corp.
Target Corp. 3
Walmart Inc. 4
Average Receivable Collection Period, Sector
Consumer Staples Distribution & Retail 4
Average Receivable Collection Period, Industry
Consumer Staples 11

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 18.94 = 19

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Walgreens Boots Alliance Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data
Average inventory processing period 32 35 36 37 41 40
Average receivable collection period 19 18 20 19 24 15
Short-term Activity Ratio
Operating cycle1 51 53 56 56 65 55
Benchmarks
Operating Cycle, Competitors2
Costco Wholesale Corp. 35
Dollar General Corp.
Target Corp. 68
Walmart Inc. 46
Operating Cycle, Sector
Consumer Staples Distribution & Retail 47
Operating Cycle, Industry
Consumer Staples 60

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
Operating cycle = Average inventory processing period + Average receivable collection period
= 32 + 19 = 51

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Walgreens Boots Alliance Inc. operating cycle improved from 2017 to 2018 and from 2018 to 2019.

Average Payables Payment Period

Walgreens Boots Alliance Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data
Payables turnover 7.45 7.43 7.13 7.95 7.59 12.71
Short-term Activity Ratio (no. days)
Average payables payment period1 49 49 51 46 48 29
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Costco Wholesale Corp. 32
Dollar General Corp. 49
Target Corp. 67
Walmart Inc. 45
Average Payables Payment Period, Sector
Consumer Staples Distribution & Retail 44
Average Payables Payment Period, Industry
Consumer Staples 51

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.45 = 49

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period.

Cash Conversion Cycle

Walgreens Boots Alliance Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data
Average inventory processing period 32 35 36 37 41 40
Average receivable collection period 19 18 20 19 24 15
Average payables payment period 49 49 51 46 48 29
Short-term Activity Ratio
Cash conversion cycle1 2 4 5 10 17 26
Benchmarks
Cash Conversion Cycle, Competitors2
Costco Wholesale Corp. 3
Dollar General Corp.
Target Corp. 1
Walmart Inc. 1
Cash Conversion Cycle, Sector
Consumer Staples Distribution & Retail 3
Cash Conversion Cycle, Industry
Consumer Staples 9

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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 32 + 1949 = 2

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Walgreens Boots Alliance Inc. cash conversion cycle improved from 2017 to 2018 and from 2018 to 2019.