Walgreens Boots Alliance Inc (WBA)
Fixed asset turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 149,391,000 | 140,471,000 | 132,961,000 | 131,917,000 | 138,974,000 |
| Property, plant and equipment | US$ in thousands | 9,092,000 | 10,909,000 | 23,884,000 | 12,247,000 | 12,796,000 |
| Fixed asset turnover | 16.43 | 12.88 | 5.57 | 10.77 | 10.86 |
August 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $149,391,000K ÷ $9,092,000K
= 16.43
The fixed asset turnover ratio of Walgreens Boots Alliance Inc has displayed fluctuations over the past five years. In 2024, the company achieved a fixed asset turnover ratio of 16.43, indicating that it generated $16.43 in sales for every dollar invested in fixed assets. This represents a significant improvement compared to the ratio of 12.88 in 2023.
However, the fixed asset turnover ratio was notably lower in 2022 at 5.57, suggesting that the company struggled to efficiently utilize its fixed assets to generate sales during that period. The ratio improved in the following years, reaching 10.77 in 2021 and 10.86 in 2020.
Overall, the trend in the fixed asset turnover ratio indicates varying levels of efficiency in utilizing fixed assets to generate sales over the years, with a particularly strong performance in 2024. it would be beneficial for the company to sustain or enhance this efficiency in the future to maximize its operational performance.
Peer comparison
Aug 31, 2024