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Walgreens Boots Alliance Financial Strength

: 5 (As of May. 2022)
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Walgreens Boots Alliance has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Walgreens Boots Alliance did not have earnings to cover the interest expense. Walgreens Boots Alliance's debt to revenue ratio for the quarter that ended in May. 2022 was 0.29. As of today, Walgreens Boots Alliance's Altman Z-Score is 2.52.


Competitive Comparison

For the Pharmaceutical Retailers subindustry, Walgreens Boots Alliance's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Walgreens Boots Alliance Financial Strength Distribution

For the Healthcare Providers & Services industry and Healthcare sector, Walgreens Boots Alliance's Financial Strength distribution charts can be found below:

* The bar in red indicates where Walgreens Boots Alliance's Financial Strength falls into.



Walgreens Boots Alliance Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Walgreens Boots Alliance's Interest Expense for the months ended in May. 2022 was $-108 Mil. Its Operating Income for the months ended in May. 2022 was $-447 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in May. 2022 was $32,220 Mil.

Walgreens Boots Alliance's Interest Coverage for the quarter that ended in May. 2022 is

Walgreens Boots Alliance did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Walgreens Boots Alliance's Debt to Revenue Ratio for the quarter that ended in May. 2022 is

Debt to Revenue Ratio=Total Debt (Q: May. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(5056 + 32220) / 130388
=0.29

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Walgreens Boots Alliance has a Z-score of 2.52, indicating it is in Grey Zones. This implies that Walgreens Boots Alliance is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.52 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Walgreens Boots Alliance  (NAS:WBA) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Walgreens Boots Alliance has the Financial Strength Rank of 5.


Walgreens Boots Alliance Financial Strength Related Terms

Thank you for viewing the detailed overview of Walgreens Boots Alliance's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Walgreens Boots Alliance Business Description

Walgreens Boots Alliance logo
Address
108 Wilmot Road, Deerfield, IL, USA, 60015
Walgreens Boots Alliance is a leading retail pharmacy chain, with over 13,000 stores in 50 states and 9 countries. Walgreens' core strategy involves brick-and-mortar retail pharmacy locations in high-traffic areas, with nearly 80% of the U.S. population living within 5 miles of a store. Currently, the company has a leading market share of the domestic prescription drug market at about 20%. In 2021, the company sold off a majority of its Alliance Healthcare wholesale business to AmerisourceBergen for $6.5 billion, doubling down on its core pharmacy efforts and ventures in strategic growth areas in primary care (VillageMD) and digital offerings. The company also has equity stakes in AmerisourceBergen (29%) and Sinopharm Holding Guoda Drugstores (40%).
Executives
Shulman Steven J director 1564 NE EXPRESSWAY ATTN: BJ PURCELL ATLANTA GA 30329
May Holly officer: EVP, Global Chief HR Officer 6301 FITCH PATH NEW ALBANY OH 43054
Gray Danielle officer: EVP and Global CLO C/O WALGREENS BOOTS ALLIANCE, INC. 108 WILMOT ROAD DEERFIELD IL 60015
Mahajan Manmohan officer: SVP, Global Controller and CAO C/O WALGREENS BOOTS ALLIANCE, INC. 108 WILMOT ROAD DEERFIELD IL 60015
Brewer Rosalind G director, officer: CEO C/O MOLSON COORS BREWING COMPANY 1225 17TH STREET, SUITE 3200 DENVER CO 80202
Puryear Pamela officer: EVP and Global Chief HRO 253 DOLPHIN COVE QUAY STAMFORD CT 06902
Jarrett Valerie B director USG CORPORATION 125 SOUTH FRANKLIN STREET CHICAGO IL 60606
Standley John T officer: EVP and President, Walgreen Co
Ashworth Richard M officer: SVP, President of Walgreen Co. 200 WILMOT ROAD DEERFIELD IL 60015
Dixon Heather Brianne officer: SVP, Global Controller and CAO AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Kehoe James officer: EVP and Global CFO KRAFT FOODS GROUP, INC. THREE LAKES DRIVE NORTHFIELD IL 60093
Almeida Jose E director ONE BAXTER PARKWAY DEERFIELD IL 60015
Roberts Simon John officer: EVP and President, Boots SEDLEY PLACE, 4TH FLOOR 361 OXFORD STREET LONDON X0 W1C 2LJ
Rosenstein Barry director C/O JANA PARTNERS LLC 767 FIFTH AVENUE, 8TH FLOOR NEW YORK NY 10153
Jana Partners Llc director 767 FIFTH AVENUE 8TH FLOOR NEW YORK NY 10153

Walgreens Boots Alliance Headlines

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