Walgreens Boots Alliance Inc (WBA)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -8,636,000 | -5,811,000 | -6,037,000 | 574,000 | -3,080,000 | -3,315,000 | -3,144,000 | -2,964,000 | 4,337,000 | 5,379,000 | 6,287,000 | 6,430,000 | 2,542,000 | 2,288,000 | -617,000 | -697,000 | 456,000 | 760,000 | 3,493,000 | 3,703,000 |
| Total stockholders’ equity | US$ in thousands | 10,445,000 | 13,642,000 | 13,484,000 | 19,481,000 | 20,020,000 | 21,063,000 | 21,192,000 | 20,576,000 | 25,275,000 | 26,253,000 | 26,702,000 | 26,263,000 | 23,419,000 | 22,101,000 | 21,112,000 | 20,059,000 | 20,637,000 | 20,736,000 | 23,720,000 | 23,661,000 |
| ROE | -82.68% | -42.60% | -44.77% | 2.95% | -15.38% | -15.74% | -14.84% | -14.41% | 17.16% | 20.49% | 23.55% | 24.48% | 10.85% | 10.35% | -2.92% | -3.47% | 2.21% | 3.67% | 14.73% | 15.65% |
August 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-8,636,000K ÷ $10,445,000K
= -82.68%
Over the past few years, Walgreens Boots Alliance Inc's return on equity (ROE) has shown significant fluctuations. The ROE has been negative for several periods, particularly in August 2024 and May 2024, indicating that the company's net income was insufficient to cover shareholders' equity during those periods. This could be a concern for investors as it suggests the company may not be effectively utilizing its equity to generate profits.
There was a notable improvement in ROE in November 2023, with a positive ROE of 2.95%, indicating that the company was able to generate a profit relative to its equity during that period. However, the ROE turned negative again in subsequent periods until August 2022 when it started showing positive values.
The highest ROE percentages were observed in February 2022 and November 2021, at 24.48% and 23.55% respectively. This suggests that during these periods, the company was effectively utilizing its equity to generate profits for shareholders.
Overall, the trend in Walgreens Boots Alliance Inc's ROE indicates inconsistency in its ability to generate returns on equity, with periods of both negative and positive performance. Investors and analysts may want to further investigate the factors contributing to these fluctuations to assess the company's financial health and performance.
Peer comparison
Aug 31, 2024
See also:
Walgreens Boots Alliance Inc Return on Equity (ROE) (Quarterly Data)