Return on Equity (ROE)
since 2005
Calculation
Walgreens Boots Alliance Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings attributable to Walgreens Boots Alliance, Inc.1 | ÷ | Total Walgreens Boots Alliance, Inc. shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Aug 31, 2019 | 16.94% | = | 100 | × | 3,982) | ÷ | 23,512) |
| Aug 31, 2018 | 19.32% | = | 100 | × | 5,024) | ÷ | 26,007) |
| Aug 31, 2017 | 14.85% | = | 100 | × | 4,078) | ÷ | 27,466) |
| Aug 31, 2016 | 13.97% | = | 100 | × | 4,173) | ÷ | 29,880) |
| Aug 31, 2015 | 13.67% | = | 100 | × | 4,220) | ÷ | 30,861) |
| Aug 31, 2014 | 9.44% | = | 100 | × | 1,932) | ÷ | 20,457) |
| Aug 31, 2013 | 12.59% | = | 100 | × | 2,450) | ÷ | 19,454) |
| Aug 31, 2012 | 11.66% | = | 100 | × | 2,127) | ÷ | 18,236) |
| Aug 31, 2011 | 18.28% | = | 100 | × | 2,714) | ÷ | 14,847) |
| Aug 31, 2010 | 14.52% | = | 100 | × | 2,091) | ÷ | 14,400) |
| Aug 31, 2009 | 13.95% | = | 100 | × | 2,006) | ÷ | 14,376) |
| Aug 31, 2008 | 16.76% | = | 100 | × | 2,157) | ÷ | 12,869) |
| Aug 31, 2007 | 18.38% | = | 100 | × | 2,041) | ÷ | 11,104) |
| Aug 31, 2006 | 17.31% | = | 100 | × | 1,751) | ÷ | 10,116) |
| Aug 31, 2005 | 17.54% | = | 100 | × | 1,560) | ÷ | 8,890) |
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 analysis of return on equity (ROE) for the period between 2005 and 2019 reveals a cyclical pattern characterized by an initial phase of stability, a period of significant contraction, and a subsequent recovery peaking in 2018.
- Period of Stability and Initial Decline (2005–2009)
- From 2005 to 2008, ROE remained relatively consistent, fluctuating within a narrow range between 16.76% and 18.38%. However, a downward shift began in 2009, where ROE dropped to 13.95%, coinciding with a steady increase in total shareholders' equity that outpaced the growth of net earnings.
- Performance Contraction (2010–2014)
- A sustained decline in ROE is observed throughout this interval, reaching a period low of 9.44% in 2014. During this timeframe, shareholders' equity grew substantially from 14.4 billion USD in 2010 to 20.46 billion USD in 2014. Because net earnings did not scale proportionally with the expanding equity base, the efficiency of equity utilization diminished.
- Recovery and Peak Performance (2015–2018)
- A sharp reversal occurred in 2015, driven by a significant increase in net earnings, which rose from 1.93 billion USD in 2014 to 4.22 billion USD. This earnings surge, combined with a subsequent reduction in total shareholders' equity from a peak of 30.86 billion USD in 2015 down to 26.01 billion USD in 2018, propelled ROE to its highest level in the analyzed period, reaching 19.32% in 2018.
- Recent Trend (2019)
- In 2019, a moderate contraction in ROE to 16.94% is noted. This result was influenced by a decline in net earnings to 3.98 billion USD, although the continued reduction in total shareholders' equity to 23.51 billion USD partially mitigated the impact on the overall ratio.
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Comparison to Competitors
Walgreens Boots Alliance Inc., ROE, long-term trends, comparison to competitors
| Walgreens Boots Alliance Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Aug 31, 2019 | 16.94% | 24.00% | 26.00% | 9.20% |
| Aug 31, 2018 | 19.32% | 24.49% | 25.06% | 12.66% |
| Aug 31, 2017 | 14.85% | 24.86% | 24.99% | 17.54% |
| Aug 31, 2016 | 13.97% | 19.46% | 25.96% | 18.24% |
| Aug 31, 2015 | 13.67% | 22.39% | -11.69% | 20.10% |
| Aug 31, 2014 | 9.44% | 16.73% | 12.14% | 21.01% |
| Aug 31, 2013 | 12.59% | 18.82% | 18.11% | 22.27% |
| Aug 31, 2012 | 11.66% | 13.83% | 18.51% | 22.01% |
| Aug 31, 2011 | 18.28% | 12.18% | 18.85% | 23.91% |
| Aug 31, 2010 | 14.52% | 12.03% | 16.21% | 20.26% |
| Aug 31, 2009 | 13.95% | 10.83% | 16.15% | 20.53% |
| Aug 31, 2008 | 16.76% | 13.95% | 18.61% | 19.70% |
| Aug 31, 2007 | 18.38% | 12.56% | 17.83% | 18.33% |
| Aug 31, 2006 | 17.31% | 12.07% | 16.95% | 21.12% |
| Aug 31, 2005 | 17.54% | 11.97% | 24.55% | 20.79% |
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., ROE, long-term trends, comparison to sector (consumer staples distribution & retail)
| Walgreens Boots Alliance Inc. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Aug 31, 2019 | 16.94% | 13.40% |
| Aug 31, 2018 | 19.32% | 15.56% |
| Aug 31, 2017 | 14.85% | 19.15% |
| Aug 31, 2016 | 13.97% | 19.33% |
| Aug 31, 2015 | 13.67% | 16.13% |
| Aug 31, 2014 | 9.44% | 19.13% |
| Aug 31, 2013 | 12.59% | 21.24% |
| Aug 31, 2012 | 11.66% | 20.44% |
| Aug 31, 2011 | 18.28% | 21.63% |
| Aug 31, 2010 | 14.52% | 18.70% |
| Aug 31, 2009 | 13.95% | 18.76% |
| Aug 31, 2008 | 16.76% | 18.92% |
| Aug 31, 2007 | 18.38% | 17.66% |
| Aug 31, 2006 | 17.31% | 19.27% |
| Aug 31, 2005 | 17.54% | 20.37% |
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., ROE, long-term trends, comparison to industry (consumer staples)
| Walgreens Boots Alliance Inc. | Consumer Staples | |
|---|---|---|
| Aug 31, 2019 | 16.94% | 22.71% |
| Aug 31, 2018 | 19.32% | 28.05% |
| Aug 31, 2017 | 14.85% | 25.14% |
| Aug 31, 2016 | 13.97% | 25.00% |
| Aug 31, 2015 | 13.67% | 23.15% |
| Aug 31, 2014 | 9.44% | 23.21% |
| Aug 31, 2013 | 12.59% | 24.09% |
| Aug 31, 2012 | 11.66% | 23.55% |
| Aug 31, 2011 | 18.28% | 23.75% |
| Aug 31, 2010 | 14.52% | 24.19% |
| Aug 31, 2009 | 13.95% | 23.20% |
| Aug 31, 2008 | 16.76% | 22.49% |
| Aug 31, 2007 | 18.38% | 18.15% |
| Aug 31, 2006 | 17.31% | 18.58% |
| Aug 31, 2005 | 17.54% | 22.40% |
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).