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Walgreen Co (NYSE:WAG)
Debt to Equity
0.21 (As of May. 2014)

Walgreen Co's current portion of long-term debt for the quarter that ended in May. 2014 was \$780 Mil. Walgreen Co's long-term debt for the quarter that ended in May. 2014 was \$3,747 Mil. Walgreen Co's total equity for the quarter that ended in May. 2014 was \$21,417 Mil. Walgreen Co's debt to equity for the quarter that ended in May. 2014 was 0.21.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

Definition

Debt to Equity measures the financial leverage a company has.

Walgreen Co's Debt to Equity Ratio for the fiscal year that ended in Aug. 2013 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (570 + 4477) / 19454 = 0.26

Walgreen Co's Debt to Equity Ratio for the quarter that ended in May. 2014 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (780 + 3747) / 21417 = 0.21

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Walgreen Co Annual Data

 Aug04 Aug05 Aug06 Aug07 Aug08 Aug09 Aug10 Aug11 Aug12 Aug13 deb2equity 0.00 0.00 0.00 0.08 0.11 0.16 0.17 0.16 0.30 0.26

Walgreen Co Quarterly Data

 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 deb2equity 0.16 0.16 0.30 0.35 0.34 0.34 0.26 0.25 0.24 0.21
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