Walgreens Boots Alliance Inc (WBA)
Return on equity (ROE)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -8,636,000 | -3,080,000 | 4,337,000 | 2,542,000 | 456,000 |
| Total stockholders’ equity | US$ in thousands | 10,445,000 | 20,020,000 | 25,275,000 | 23,419,000 | 20,637,000 |
| ROE | -82.68% | -15.38% | 17.16% | 10.85% | 2.21% |
August 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-8,636,000K ÷ $10,445,000K
= -82.68%
Walgreens Boots Alliance Inc's return on equity (ROE) has experienced fluctuations over the past five years. In 2024, the company's ROE was significantly low at -82.68%, indicating that the company generated a net loss relative to its shareholder equity. This steep decline in ROE may be a cause for concern as it suggests challenges in effectively utilizing shareholder funds to generate profits.
In 2023, the ROE improved compared to the previous year but remained negative at -15.38%. This negative ROE indicates that the company continued to struggle in generating returns for its shareholders. However, the improvement from the previous year may suggest the company's efforts to enhance its efficiency and profitability.
In 2022, Walgreens Boots Alliance Inc's ROE turned positive at 17.16%, reflecting an improvement in the company's ability to generate profits relative to shareholder equity. This uptick in ROE indicates a more efficient utilization of shareholder funds, translating into higher returns for investors.
The trend continued in 2021, with the ROE further increasing to 10.85%. This signifies continued progress in the company's profitability and efficiency in leveraging shareholder equity to generate returns.
In 2020, the company's ROE stood at 2.21%, showing a modest improvement compared to the previous year. While the increase in ROE was positive, it was relatively low, suggesting that there may still be opportunities for Walgreens Boots Alliance Inc to enhance its profitability further.
Overall, the fluctuating trend in Walgreens Boots Alliance Inc's ROE indicates varying levels of efficiency in utilizing shareholder equity to generate profits over the past five years. The company needs to focus on sustainable growth strategies and operational improvements to consistently deliver value to its shareholders in the future.
Peer comparison
Aug 31, 2024