Walgreens Boots Alliance Inc (WBA)
Operating return on assets (Operating ROA)
| 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 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -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 | 4,766,000 | 5,516,000 |
| Total assets | US$ in thousands | 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 | 67,598,000 | 68,586,000 |
| Operating ROA | -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% | 7.05% | 8.04% |
February 29, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-14,138,000K ÷ $84,207,000K
= -16.79%
The operating return on assets (ROA) for Walgreens Boots Alliance Inc has shown fluctuations over the past several quarters. The negative operating ROA figures in the recent quarters indicate that the company's operating income generated from its assets has been insufficient to cover the assets' carrying costs.
In the most recent quarter, the operating ROA was -16.79%, a significant decline compared to the previous quarter's -0.79%. This sharp decrease may suggest challenges in generating operational profits relative to the assets employed. Previously, the operating ROA had been gradually declining from positive figures in May 2020 to negative figures in Aug 2022, before briefly turning positive in two consecutive quarters.
Overall, the negative trend in operating ROA over recent quarters may indicate a need for improvement in operational efficiency and effectiveness in utilizing assets to generate income. It would be prudent for the company to closely monitor and address the factors contributing to the decline in operating ROA to enhance profitability and sustainable growth.
Peer comparison
Feb 29, 2024