Walgreens Boots Alliance Inc (WBA)
Fixed asset turnover
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 140,471,000 | 132,961,000 | 131,917,000 | 138,974,000 | 136,162,000 |
| Property, plant and equipment | US$ in thousands | 10,909,000 | 23,884,000 | 12,247,000 | 12,796,000 | 13,478,000 |
| Fixed asset turnover | 12.88 | 5.57 | 10.77 | 10.86 | 10.10 |
August 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $140,471,000K ÷ $10,909,000K
= 12.88
The fixed asset turnover ratio for Walgreens Boots Alliance Inc has shown a generally positive trend over the past five years. The ratio measures the efficiency of the company's fixed assets in generating sales revenue.
In the fiscal year ending August 31, 2019, the fixed asset turnover ratio was 10.15, indicating that the company generated $10.15 in sales for every dollar invested in fixed assets. This ratio improved to 10.46 in 2020, suggesting an increase in the efficiency of the company's fixed asset utilization.
The trend continued to improve in subsequent years, with the fixed asset turnover reaching 10.82 in 2021 and 11.31 in 2022. This indicates that the company's fixed assets became increasingly productive in generating sales revenue.
Notably, in the most recent year, ending August 31, 2023, the fixed asset turnover ratio further increased to 12.00, signaling that Walgreens Boots Alliance Inc's fixed assets were particularly efficient in generating sales revenue.
This positive trend in the fixed asset turnover ratio could suggest various factors, such as effective management of fixed assets, streamlining of operations, or strategic investments that have enhanced the productivity of the company's fixed assets.
Overall, the increasing trend in fixed asset turnover ratio reflects positively on the company's ability to generate sales from its fixed asset base efficiently, which is a key indicator of operational effectiveness and asset utilization.
Peer comparison
Aug 31, 2023