Walgreens Boots Alliance Inc (WBA)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -6,809,000 | 657,000 | -4,359,000 | -4,728,000 | -4,534,000 | -4,293,000 | 4,706,000 | 6,552,000 | 8,385,000 | 8,435,000 | 4,115,000 | 3,547,000 | -44,000 | 2,000 | 1,424,000 | 1,504,000 | 4,475,000 | 4,787,000 | 5,208,000 | 6,225,000 |
| Long-term debt | US$ in thousands | 7,535,000 | 7,585,000 | 8,145,000 | 8,841,000 | 8,820,000 | 7,789,000 | 10,615,000 | 10,670,000 | 11,203,000 | 11,199,000 | 7,675,000 | 7,732,000 | 10,998,000 | 10,973,000 | 12,203,000 | 12,111,000 | 10,625,000 | 10,628,000 | 11,098,000 | 12,127,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 23,512,000 | 24,133,000 |
| Return on total capital | -32.39% | 2.43% | -15.48% | -15.81% | -15.11% | -15.13% | 13.11% | 17.75% | 22.12% | 22.52% | 13.23% | 11.89% | -0.14% | 0.01% | 4.34% | 4.58% | 13.03% | 13.96% | 15.05% | 17.17% |
February 29, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-6,809,000K ÷ ($7,535,000K + $13,484,000K)
= -32.39%
The return on total capital for Walgreens Boots Alliance Inc has been quite volatile over the past several quarters. The company experienced a significant decline in its return on total capital, reaching as low as -32.39% in the most recent period. Prior to that, there was some improvement with positive returns in the range of 2.43% to 22.52%.
The return on total capital saw a significant improvement in the August 2022 quarter, reaching 17.75% and 13.11% in the November 2022 quarter. However, the return started to decline again in the subsequent periods.
The negative returns observed in some periods suggest that the company may not be generating satisfactory profits considering the capital invested. Management should closely monitor and analyze the factors contributing to these fluctuations in return on total capital to make informed decisions aimed at improving the company's profitability and financial performance.
Peer comparison
Feb 29, 2024