Walgreens Boots Alliance Inc. (NASDAQ:WBA)

Current assets

The current assets showed notable fluctuations over the six-year period. Beginning at approximately $12.2 billion in 2014, there was a substantial increase to nearly $19.7 billion in 2015, followed by a further rise reaching $25.9 billion in 2016. However, this was succeeded by a decline, with current assets decreasing to about $19.8 billion in 2017 and continuing downward to $17.8 billion in 2018. In 2019, a slight recovery brought the figure up to $18.7 billion. Overall, despite the mid-period peak, current assets exhibited a general volatility with a downward trend after 2016.

Adjusted current assets

Adjusted current assets mirrored the pattern observed in current assets but consistently presented higher values. Starting at approximately $14.7 billion in 2014, these assets increased significantly to about $22.3 billion in 2015, peaking at $28.8 billion in 2016. Similar to current assets, adjusted current assets declined to nearly $22.9 billion in 2017 and further to $20.9 billion in 2018. A modest increase to around $22 billion was noted in 2019. The adjusted values suggest a similar trend of initial growth and subsequent contraction, though they remain higher than the reported current assets throughout the period.

The financial data reveals a fluctuating trend in both total assets and adjusted total assets over the examined periods.

Total Assets

This metric exhibited a significant increase from 2014 to 2015, rising from approximately 37.2 billion USD to 68.8 billion USD. Following this sharp growth, total assets experienced a moderate increase to nearly 72.7 billion USD in 2016. However, subsequent years showed a decline and stabilization pattern: assets decreased in 2017 to about 66.0 billion USD, then slightly increased in 2018 to approximately 68.1 billion USD, and slightly decreased again in 2019 to 67.6 billion USD. This suggests that after an initial rapid expansion, the company's total asset base stabilized with moderate fluctuations in the later years.

Adjusted Total Assets

Adjusted total assets were considerably higher than total assets throughout the period, starting at roughly 67.1 billion USD in 2014 and increasing substantially to 101.3 billion USD in 2015. The upward trend continued more moderately in 2016, reaching approximately 103.1 billion USD. However, from 2017 onwards, adjusted total assets followed a downward and then relatively flat trajectory: falling to 95.4 billion USD in 2017, then slightly rising in 2018 to around 97.8 billion USD, and remaining almost steady in 2019 at 97.5 billion USD. This indicates that adjustments applied to total assets had a considerable impact on asset valuation, with a peak around 2016 and a subsequent decline followed by stabilization.

Overall, both total and adjusted assets demonstrate a pattern of rapid growth in the early years, peaking around 2016, followed by a period of decline and flattening until 2019. The adjusted assets remain consistently above the total assets, highlighting the significance of adjustments in asset valuation across all years analyzed.

The financial data reveals several notable trends in the liabilities of the entity over the six-year period analyzed.

Total Liabilities

Total liabilities showed a substantial increase from 2014 to 2015, more than doubling from $16,621 million to $37,482 million. Following this sharp rise, there was a further increase in 2016 to $42,407 million. However, total liabilities decreased in 2017 to $37,735 million before rising again in 2018 and 2019 to $41,435 million and $43,447 million respectively. This pattern indicates some volatility with a general upward trajectory, suggesting expansion or increased financial obligations during the period.

Adjusted Total Liabilities

Adjusted total liabilities also increased significantly from $42,972 million in 2014 to $63,747 million in 2015. The upward trend continued, peaking at $67,243 million in 2016. A decrease occurred in 2017 to $61,048 million, followed by a rise again in 2018 and 2019 to $65,494 million and $67,393 million. Despite the fluctuations, adjusted total liabilities remained elevated compared to 2014, indicating sustained higher leverage or adjusted financial commitments.

Overall, both total and adjusted total liabilities demonstrate a pattern of considerable growth with some fluctuations, reflecting changes in the company's financial structure and obligations over the years analyzed.

The analysis of the annual equity data for the specified period reveals several notable trends in the financial position over time.

Total Walgreens Boots Alliance, Inc. shareholders’ equity

This metric exhibited a fluctuating downward trend from 2014 through 2019. Initially, equity increased significantly from 20,457 million USD in 2014 to a peak of 30,861 million USD in 2015. Subsequently, it experienced a consistent decline each year, reaching 23,512 million USD by 2019. This represents a substantial reduction in shareholders’ equity over the latter part of the period analyzed.

Adjusted total equity

The adjusted total equity followed a broadly similar pattern to the total shareholders’ equity, but values remained consistently higher across all years. Starting at 24,157 million USD in 2014, adjusted equity rose to 37,513 million USD in 2015, marking the highest point. From there, it showed a gradual and steady decrease over the subsequent years, falling to 30,068 million USD by 2019. Despite the downward trajectory, the adjusted equity maintained a relative cushion above the reported total shareholders’ equity figures.

General observations

The peak in both equity measures occurred in 2015, followed by a prolonged decline through to 2019, suggesting potential challenges impacting the company’s capitalization or retained earnings. The consistent gap between the adjusted total equity and the reported total shareholders’ equity indicates that adjustments—possibly for intangible assets or other considerations—result in a more favorable equity position when accounted for. However, the downward trends imply pressures on equity bases which could derive from factors such as increased liabilities, dividend payments exceeding net income, share repurchases, or operational losses during these periods.

The financial data reveals several key trends regarding the company's capital structure and equity over the six-year period.

Total Reported Debt

This metric exhibits significant fluctuation. Initially, debt increased drastically from 4,510 million in 2014 to a peak of 19,028 million in 2016. Subsequently, it declined sharply to 12,935 million in 2017 but then experienced a gradual increase again, reaching 16,836 million by 2019. This indicates periods of both increased leveraging and deleveraging efforts within the company.

Total Shareholders’ Equity

Shareholders’ equity rose substantially from 20,457 million in 2014 to a high of 30,861 million in 2015. Afterwards, a consistent downward trend occurred, resulting in equity decreasing to 23,512 million by 2019. This downward trajectory may suggest pressure on retained earnings or increased distributions to shareholders.

Total Reported Capital

Total reported capital follows the overall movement in debt and equity, rising from 24,967 million in 2014 to a peak of 48,908 million in 2016. A notable decline ensued, settling near 40,348 million by 2019. The combination of these movements reflects adjustments in financing strategy during the period.

Adjusted Total Debt

The adjusted total debt shows a continuous increase from 31,909 million in 2014 to 46,508 million in 2016, followed by a decline to 39,129 million in 2017. Thereafter, it increased again to 43,464 million in 2019. This pattern mirrors the reported debt but at generally higher levels, indicating the inclusion of additional debt-like obligations in the adjusted figure.

Adjusted Total Equity

Adjusted total equity peaks at 37,513 million in 2015, then demonstrates a steady decline each year, reaching 30,068 million in 2019. Similar to reported equity, this decrease suggests weakening equity cushions alongside growing financial leverage.

Adjusted Total Capital

Adjusted total capital reached its highest point of 82,396 million in 2016 before dropping steadily to approximately 73,532 million by 2019. This reflects the combined effect of fluctuations in debt and equity, indicating a possible shift in the capital structure emphasis or external factors impacting capital deployment.

Overall, the data indicates a period of expansion in debt and capital during the mid years, followed by a recalibration with decreases in equity and capital in later years. The rising debt levels paired with declining equity imply a trend toward increased leverage. Adjusted figures consistently show higher debt and capital values than reported figures, suggesting more comprehensive inclusion of liabilities. This dynamic highlights potential considerations for financial risk and capital management strategy going forward.

Net Earnings Attributable to Walgreens Boots Alliance, Inc.

The net earnings demonstrated variability over the reviewed period. Beginning at $1,932 million in 2014, a significant increase was observed in 2015 reaching $4,220 million. This level was relatively sustained through 2016 and 2017, with minor fluctuations and a peak in 2018 at $5,024 million. However, in 2019, a notable decline to $3,982 million occurred, indicating a reversal from the prior upward trend.

Adjusted Net Earnings

The adjusted net earnings showed a different pattern, starting at $2,701 million in 2014 and rising to $4,077 million in 2015. In 2016, a sharp decline to $1,165 million was recorded, representing a substantial dip. After this downturn, earnings recovered to $4,052 million in 2017 and achieved a further increase to $4,825 million in 2018. Similar to the net earnings trend, a decrease to $3,507 million occurred in 2019, indicating a reduction in adjusted profitability for that year.

Overall Trend Analysis

Both net earnings and adjusted net earnings experienced growth from 2014 to 2015, followed by a pronounced decline in adjusted earnings in 2016, not mirrored as strongly in net earnings. Post-2016, a recovery was evident in both metrics, culminating in their highest values in 2018. The subsequent decline in 2019 for both earnings measures suggests possible challenges affecting profitability during that period. The fluctuations evidence variability in the company's financial performance over the six-year span, with adjustments impacting earnings differently in certain years.