Walgreens Boots Alliance Inc (WBA)
Operating return on assets (Operating ROA)
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -14,076,000 | -13,550,000 | -14,138,000 | -770,000 | -6,882,000 | -7,253,000 | -7,096,000 | -6,047,000 | 1,387,000 | 3,119,000 | 4,573,000 | 4,159,000 | 2,341,000 | 2,039,000 | -778,000 | -474,000 | 1,074,000 | 1,112,000 | 3,998,000 | 4,379,000 |
| Total assets | US$ in thousands | 81,037,000 | 82,985,000 | 84,207,000 | 97,823,000 | 96,628,000 | 98,605,000 | 100,479,000 | 92,875,000 | 90,124,000 | 92,759,000 | 92,683,000 | 96,507,000 | 81,285,000 | 91,920,000 | 90,920,000 | 89,167,000 | 87,174,000 | 86,444,000 | 90,003,000 | 90,807,000 |
| Operating ROA | -17.37% | -16.33% | -16.79% | -0.79% | -7.12% | -7.36% | -7.06% | -6.51% | 1.54% | 3.36% | 4.93% | 4.31% | 2.88% | 2.22% | -0.86% | -0.53% | 1.23% | 1.29% | 4.44% | 4.82% |
August 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-14,076,000K ÷ $81,037,000K
= -17.37%
The operating return on assets (ROA) for Walgreens Boots Alliance Inc has shown volatility over the past few quarters. The negative operating ROA figures in the recent periods, particularly in August 2024, May 2024, and February 2024, indicate that the company's operating income generated from its assets has been insufficient to cover its asset base, resulting in net losses in those periods.
The negative trend in operating ROA in these recent periods is a cause for concern as it suggests operational inefficiencies or declining profitability in relation to the assets employed in the business. This could be driven by various factors such as increasing operating expenses, declining revenues, or asset impairments.
However, it is worth noting that the operating ROA was positive in some of the earlier periods, such as August 2022, May 2022, and February 2022, indicating that the company was able to generate operating income from its assets during those periods. This positive trend demonstrates the potential for the company to effectively utilize its assets to generate profits when operating conditions are more favorable.
Overall, the negative operating ROA figures in the recent periods highlight the importance for Walgreens Boots Alliance Inc to closely monitor its operational performance, control costs, and enhance revenue generation in order to improve its operating profitability and return on assets going forward.
Peer comparison
Aug 31, 2024