Return on Assets (ROA)
since 2005
Calculation
Walgreens Boots Alliance Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings attributable to Walgreens Boots Alliance, Inc.1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Aug 31, 2019 | 5.89% | = | 100 | × | 3,982) | ÷ | 67,598) |
| Aug 31, 2018 | 7.37% | = | 100 | × | 5,024) | ÷ | 68,124) |
| Aug 31, 2017 | 6.18% | = | 100 | × | 4,078) | ÷ | 66,009) |
| Aug 31, 2016 | 5.74% | = | 100 | × | 4,173) | ÷ | 72,688) |
| Aug 31, 2015 | 6.14% | = | 100 | × | 4,220) | ÷ | 68,782) |
| Aug 31, 2014 | 5.20% | = | 100 | × | 1,932) | ÷ | 37,182) |
| Aug 31, 2013 | 6.91% | = | 100 | × | 2,450) | ÷ | 35,481) |
| Aug 31, 2012 | 6.36% | = | 100 | × | 2,127) | ÷ | 33,462) |
| Aug 31, 2011 | 9.89% | = | 100 | × | 2,714) | ÷ | 27,454) |
| Aug 31, 2010 | 7.96% | = | 100 | × | 2,091) | ÷ | 26,275) |
| Aug 31, 2009 | 7.98% | = | 100 | × | 2,006) | ÷ | 25,142) |
| Aug 31, 2008 | 9.63% | = | 100 | × | 2,157) | ÷ | 22,410) |
| Aug 31, 2007 | 10.57% | = | 100 | × | 2,041) | ÷ | 19,314) |
| Aug 31, 2006 | 10.22% | = | 100 | × | 1,751) | ÷ | 17,131) |
| Aug 31, 2005 | 10.68% | = | 100 | × | 1,560) | ÷ | 14,609) |
Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
1 US$ in millions
The Return on Assets (ROA) over the observed period from 2005 to 2019 demonstrates a long-term decline in asset utilization efficiency. While net earnings grew substantially over the fourteen-year span, the growth in total assets occurred at a more accelerated pace, leading to a compression of the ROA ratio.
- Historical Performance and Early Stability
- Between 2005 and 2007, asset efficiency remained relatively stable and peaked, with ROA figures consistently exceeding 10%. During this phase, the relationship between net earnings and total assets was at its most optimized, reflecting a high capacity to generate profit from the existing asset base.
- Period of Margin Compression
- A downward trend is observed starting in 2008, with ROA falling below the 10% threshold. Despite a temporary recovery to 9.89% in 2011, a steady decline followed, reaching a period low of 5.20% by August 31, 2014. This indicates that during this interval, asset accumulation outpaced the growth of net income.
- Impact of Large-Scale Asset Expansion
- A significant structural shift occurred between 2014 and 2015, where total assets increased from 37,182 million to 68,782 million. While net earnings also surged during this transition, from 1,932 million to 4,220 million, the scale of asset growth prevented a return to historical ROA levels, with the ratio stabilizing in a lower range between 5.74% and 7.37% from 2015 through 2019.
- Long-Term Correlation Analysis
- The data reveals a divergent trend where absolute profitability increased—rising from 1,560 million in 2005 to 3,982 million in 2019—but the efficiency of those assets diminished. The final observed ROA of 5.89% in 2019 represents a significant reduction in efficiency compared to the 10.68% recorded at the beginning of the series.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
How can I help you?
Comparison to Competitors
Walgreens Boots Alliance Inc., ROA, long-term trends, comparison to competitors
| Walgreens Boots Alliance Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Aug 31, 2019 | 5.89% | 8.06% | 7.11% | 3.04% |
| Aug 31, 2018 | 7.37% | 7.68% | 7.52% | 4.82% |
| Aug 31, 2017 | 6.18% | 7.37% | 7.31% | 6.86% |
| Aug 31, 2016 | 5.74% | 7.09% | 8.35% | 7.36% |
| Aug 31, 2015 | 6.14% | 7.11% | -3.95% | 8.03% |
| Aug 31, 2014 | 5.20% | 6.23% | 4.42% | 7.83% |
| Aug 31, 2013 | 6.91% | 6.73% | 6.23% | 8.37% |
| Aug 31, 2012 | 6.36% | 6.30% | 6.28% | 8.12% |
| Aug 31, 2011 | 9.89% | 5.46% | 6.68% | 9.07% |
| Aug 31, 2010 | 7.96% | 5.47% | 5.59% | 8.40% |
| Aug 31, 2009 | 7.98% | 4.94% | 5.02% | 8.20% |
| Aug 31, 2008 | 9.63% | 6.20% | 6.39% | 7.79% |
| Aug 31, 2007 | 10.57% | 5.52% | 7.46% | 7.46% |
| Aug 31, 2006 | 10.22% | 6.31% | 6.88% | 8.13% |
| Aug 31, 2005 | 10.68% | 6.44% | 9.90% | 8.54% |
Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Sector (Consumer Staples Distribution & Retail)
Walgreens Boots Alliance Inc., ROA, long-term trends, comparison to sector (consumer staples distribution & retail)
| Walgreens Boots Alliance Inc. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Aug 31, 2019 | 5.89% | 4.34% |
| Aug 31, 2018 | 7.37% | 5.60% |
| Aug 31, 2017 | 6.18% | 6.99% |
| Aug 31, 2016 | 5.74% | 7.47% |
| Aug 31, 2015 | 6.14% | 6.14% |
| Aug 31, 2014 | 5.20% | 7.10% |
| Aug 31, 2013 | 6.91% | 7.83% |
| Aug 31, 2012 | 6.36% | 7.61% |
| Aug 31, 2011 | 9.89% | 8.27% |
| Aug 31, 2010 | 7.96% | 7.58% |
| Aug 31, 2009 | 7.98% | 7.28% |
| Aug 31, 2008 | 9.63% | 7.37% |
| Aug 31, 2007 | 10.57% | 7.28% |
| Aug 31, 2006 | 10.22% | 7.73% |
| Aug 31, 2005 | 10.68% | 8.59% |
Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Industry (Consumer Staples)
Walgreens Boots Alliance Inc., ROA, long-term trends, comparison to industry (consumer staples)
| Walgreens Boots Alliance Inc. | Consumer Staples | |
|---|---|---|
| Aug 31, 2019 | 5.89% | 6.41% |
| Aug 31, 2018 | 7.37% | 8.40% |
| Aug 31, 2017 | 6.18% | 7.42% |
| Aug 31, 2016 | 5.74% | 7.94% |
| Aug 31, 2015 | 6.14% | 7.69% |
| Aug 31, 2014 | 5.20% | 7.96% |
| Aug 31, 2013 | 6.91% | 8.75% |
| Aug 31, 2012 | 6.36% | 8.63% |
| Aug 31, 2011 | 9.89% | 8.89% |
| Aug 31, 2010 | 7.96% | 9.45% |
| Aug 31, 2009 | 7.98% | 9.43% |
| Aug 31, 2008 | 9.63% | 9.11% |
| Aug 31, 2007 | 10.57% | 8.07% |
| Aug 31, 2006 | 10.22% | 8.42% |
| Aug 31, 2005 | 10.68% | 9.55% |
Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).