Walgreens Boots Alliance Inc (WBA)
Operating return on assets (Operating ROA)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -14,076,000 | -6,882,000 | 1,387,000 | 2,342,000 | 982,000 |
| Total assets | US$ in thousands | 81,037,000 | 96,628,000 | 90,124,000 | 81,285,000 | 87,174,000 |
| Operating ROA | -17.37% | -7.12% | 1.54% | 2.88% | 1.13% |
August 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-14,076,000K ÷ $81,037,000K
= -17.37%
The operating return on assets (ROA) for Walgreens Boots Alliance Inc has shown a declining trend over the past five years. In 2020, the operating ROA stood at 1.13%, indicating that the company generated $1.13 in operating income for every $100 of assets. Subsequently, the operating ROA improved in 2021 to 2.88%, signifying better operational efficiency and asset utilization. However, there was a decrease in performance in 2022 to 1.54%, followed by a significant decline in 2023 to -7.12%. This negative operating ROA suggests that the company's operating income was insufficient to cover its asset base, indicating operational challenges and potentially inefficiencies. The trend continued to deteriorate in 2024, with the operating ROA falling further to -17.37%, highlighting significant operational difficulties and a decreasing ability to generate positive returns from its assets. Overall, the declining trend in operating ROA raises concerns about the company's operational performance and efficiency in utilizing its assets effectively to generate operating income.
Peer comparison
Aug 31, 2024