Walgreens Boots Alliance Inc (WBA)
Total 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 |
| Total assets | US$ in thousands | 96,628,000 | 90,124,000 | 81,285,000 | 87,174,000 | 67,598,000 |
| Total asset turnover | 1.45 | 1.48 | 1.62 | 1.59 | 2.01 |
August 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $140,471,000K ÷ $96,628,000K
= 1.45
The total asset turnover ratio measures a company's ability to generate revenue from its assets. It is calculated by dividing the company's net sales by its average total assets. The higher the ratio, the more effectively the company is using its assets to generate sales.
Looking at the historical data for Walgreens Boots Alliance Inc, we can see that the total asset turnover ratio has experienced a decreasing trend over the past five years. In 2019, the ratio was at its peak at 2.02, indicating that the company generated $2.02 in sales for every $1 of total assets. However, this ratio has been declining since then.
In 2020, the total asset turnover was 1.60, which means the company generated $1.60 in sales for every $1 of total assets. The trend continued in 2021 and 2022, with ratios of 1.63 and 1.47, respectively. The latest available data for 2023 shows a further decrease to 1.44.
This declining trend in total asset turnover may indicate that the company is becoming less efficient in utilizing its assets to generate sales. It could be due to various factors such as a decrease in sales, an increase in total assets without a corresponding increase in sales, or inefficient utilization of assets.
Further analysis would be required to understand the specific reasons behind this trend and to determine if it is a result of operational issues, changes in the business model, or other external factors. It's important for investors and stakeholders to keep a close eye on this ratio and its underlying components to assess the company's operational efficiency and financial performance.
Peer comparison
Aug 31, 2023