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Walgreens Boots Alliance Altman Z-Score

: 2.52 (As of Today)
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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.

Walgreens Boots Alliance has a Altman 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 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:

WBA' s Altman Z-Score Range Over the Past 10 Years
Min: 2.06   Med: 6.51   Max: 13.1
Current: 2.52

During the past 13 years, Walgreens Boots Alliance's highest Altman Z-Score was 13.10. The lowest was 2.06. And the median was 6.51.


Walgreens Boots Alliance Altman Z-Score Historical Data

The historical data trend for Walgreens Boots Alliance's Altman Z-Score can be seen below:

* 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.

* Premium members only.

Walgreens Boots Alliance Annual Data
Trend Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.06 3.82 3.27 2.22 2.72

Walgreens Boots Alliance Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
Altman Z-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.31 2.72 2.50 2.62 2.55

Competitive 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 Distribution

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.



Walgreens Boots Alliance Altman Z-Score Calculation

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.

Walgreens Boots Alliance's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.056+1.4*0.4165+3.3*0.065+0.6*0.5695+1.0*1.4502
=2.52

* 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. 2022:
Total Assets was $92,759 Mil.
Total Current Assets was $18,872 Mil.
Total Current Liabilities was $24,067 Mil.
Retained Earnings was $38,632 Mil.
Pre-Tax Income was -18 + 947 + 3814 + 907 = $5,650 Mil.
Interest Expense was -108 + -100 + -86 + -88 = $-382 Mil.
Revenue was 32597 + 33756 + 33901 + 34262 = $134,516 Mil.
Market Cap (Today) was $35,080 Mil.
Total Liabilities was $61,602 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(18872 - 24067)/92759
=-0.056

X2=Retained Earnings/Total Assets
=38632/92759
=0.4165

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(5650 - -382)/92759
=0.065

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=35080.177/61602
=0.5695

X5=Revenue/Total Assets
=134516/92759
=1.4502

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Walgreens Boots Alliance has a Altman Z-Score of 2.52 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Walgreens Boots Alliance  (NAS:WBA) Altman Z-Score Explanation

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.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Walgreens Boots Alliance Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Walgreens Boots Alliance's Altman Z-Score 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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