The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 2.3 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.
Walgreens Boots Alliance has a Altman Z-Score of 2.08, 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 face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Walgreens Boots Alliance's Altman Z-Score or its related term are showing as below:
BUE:WBA'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.61 Med: 2.53 Max: 4.06
Current: 2.3
During the past 13 years, Walgreens Boots Alliance's highest Altman Z-Score was 4.06. The lowest was 1.61. And the median was 2.53.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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.
BUE:WBA vs WGRX, PETS, BHIC: Altman Z-Score Comparison
For the Pharmaceutical Retailers subindustry, Walgreens Boots Alliance's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Walgreens Boots Alliance's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Walgreens Boots Alliance's Altman Z-Score falls into.
Altman 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.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Trailing Twelve Months (TTM) ended in May. 2025: Total Assets was ARS82,149,897.11 Mil. Total Current Assets was ARS18,583,919.76 Mil. Total Current Liabilities was ARS30,724,246.16 Mil. Retained Earnings was ARS23,473,428.23 Mil. Pre-Tax Income was -88771.033 + -4509140.355 + -532620.005 + -930135.977 = ARS-6,060,667.37 Mil. Interest Expense was -149135.335 + -136994.608 + -120780.001 + -122091.997 = ARS-529,001.94 Mil. Revenue was 46144366.318 + 40979441.357 + 39064410.391 + 34993803.132 = ARS161,182,021.20 Mil. Market Cap (Today) was ARS14,009,603.65 Mil. Total Liabilities was ARS73,487,027.95 Mil.
* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.
Walgreens Boots Alliance (BUE:WBA) has a Altman Z-Score of 2.08 as of Jun. 30, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Walgreens Boots Alliance and its competitors. This is 18% below median its historical median of 2.53. Over the past decade, Walgreens Boots Alliance's Altman Z-Score has ranged from 1.61 to 4.06.
Is Walgreens Boots Alliance's Altman Z-Score too high?
Walgreens Boots Alliance's current Altman Z-Score of 2.08 is 18% below median its 10-year median of 2.53. Over the past 10 years, this metric has ranged from a low of 1.61 to a high of 4.06. The Healthcare Providers & Services industry median Altman Z-Score is 2.38. Walgreens Boots Alliance's value of 2.08 is 12.6% below this industry median. Overall, Walgreens Boots Alliance has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Walgreens Boots Alliance's Altman Z-Score compare to WGRX and PETS?
Walgreens Boots Alliance's Altman Z-Score of 2.08 can be compared against companies in the Healthcare Providers & Services industry. The industry median Altman Z-Score is 2.38. Walgreens Boots Alliance's value of 2.08 is 12.6% below this benchmark. Historically, Walgreens Boots Alliance's own Altman Z-Score has ranged from 1.61 to 4.06 over the past decade. While the company's 10-year median is 2.53 vs. the industry median of 2.38, Walgreens Boots Alliance has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Healthcare Providers & Services company?
The median Altman Z-Score among Healthcare Providers & Services companies is 2.38, based on 657 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Walgreens Boots Alliance's current Altman Z-Score of 2.08 is 12.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Walgreens Boots Alliance and its competitors. For the Healthcare Providers & Services industry, the median Altman Z-Score is 2.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walgreens Boots Alliance's current Altman Z-Score is 2.08, which is 18% below median its own 10-year median of 2.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walgreens Boots Alliance stock overvalued right now?
Walgreens Boots Alliance (BUE:WBA) has a current Altman Z-Score of 2.08. The current Altman Z-Score is 2.08, which is 18% below median its 10-year median of 2.53 and 12.6% below the Healthcare Providers & Services industry median of 2.38. Walgreens Boots Alliance's overall GF Score™ is 15/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Walgreens Boots Alliance (BUE:WBA), the current Altman Z-Score is 2.08 as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Walgreens Boots Alliance is one of the largest retail pharmacy chains in the US, with over 8,000 locations. Nearly three quarters of Americans live within five miles of a Walgreens location. Roughly two thirds of revenue is generated from prescription drug sales; Walgreens makes up 20% of total prescription revenue in the US. Walgreens also generates sales from retail products (general wellness consumables and its own branded merchandise), European drug wholesale, and healthcare. With more locations incorporating additional services like Health Corner and Village Medical, Walgreens creates an omnichannel experience for patients and positions itself as a one-stop healthcare provider.
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