Walgreens Boots Alliance Inc (WBA)
Return on total capital
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -6,908,000 | -4,358,000 | 4,707,000 | 4,114,000 | 1,408,000 |
| Long-term debt | US$ in thousands | 8,044,000 | 8,145,000 | 10,615,000 | 7,675,000 | 12,203,000 |
| Total stockholders’ equity | US$ in thousands | 10,445,000 | 20,020,000 | 25,275,000 | 23,419,000 | 20,637,000 |
| Return on total capital | -37.36% | -15.47% | 13.12% | 13.23% | 4.29% |
August 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-6,908,000K ÷ ($8,044,000K + $10,445,000K)
= -37.36%
The return on total capital for Walgreens Boots Alliance Inc has shown significant fluctuations over the past five years. In 2020, the return on total capital was 4.29%, indicating a moderate profitability on the invested capital. Subsequently, there was a notable increase in 2021 and 2022, with return on total capital reaching 13.23% and 13.12% respectively, reflecting improved efficiency in utilizing total capital to generate profits.
However, the trend reversed in 2023 and 2024, with the return on total capital plummeting to -15.47% and -37.36% respectively. These negative figures indicate that the company's profitability may have been impacted by challenges in effectively utilizing its total capital to generate returns during these years.
Overall, the fluctuating trend in return on total capital for Walgreens Boots Alliance Inc suggests that the company may be facing operational or financial challenges that have influenced its ability to generate consistent profits relative to its invested capital. Further analysis and investigation into the underlying factors driving these fluctuations would be necessary to evaluate the company's financial performance accurately.
Peer comparison
Aug 31, 2024