Walgreens Boots Alliance Inc. (NASDAQ:WBA)

The financial data reveals several key trends over the 15-year period ending August 31, 2019.

Sales

There is a consistent upward trend in sales figures, increasing from $42,202 million in 2005 to $136,866 million in 2019. This reflects a more than threefold growth. Notable jumps occurred between 2013 and 2015, where sales surged from approximately $72 billion to over $103 billion, and continued to rise steadily thereafter, indicating sustained revenue growth for the company.

Operating Income

Operating income displayed overall growth but with greater volatility than sales. From $2,424 million in 2005, it rose to a peak of $6,001 million in 2016. However, fluctuations occurred; for instance, operating income decreased sharply from $4,365 million in 2011 to $3,464 million in 2012 before recovering. After peaking in 2016, operating income dropped to $4,998 million by 2019, showing some downward pressure on operational profitability in the later years.

Net Earnings Attributable to Walgreens Boots Alliance, Inc.

Net earnings exhibit a general growth trend from $1,560 million in 2005 to a peak at around $5,024 million in 2018, albeit with some fluctuations and periods of decline. The earnings nearly doubled between 2013 and 2015, followed by a plateau and a slight decline from 2018 to 2019. This pattern suggests variability in net profitability that may be influenced by non-operating factors or changes in expenses and taxes.

Overall, the data indicates strong growth in sales revenue over the analysis period. Operating income and net earnings, while generally increasing, show more variability, suggesting operational and external challenges impacting profitability. The peak in profitability around 2016-2018, followed by declines in 2019, could warrant further investigation into cost management, market conditions, or strategic initiatives influencing financial performance.

The analysis of the financial data over the period presented reveals several notable trends in the company's asset base.

Current Assets

Current assets displayed a generally upward trend from US$8,317 million in 2005 to a peak of US$25,883 million in 2016. This period was marked by gradual growth with some fluctuations, such as a decline from 2011 (US$12,322 million) to 2012 (US$10,760 million). After reaching the peak in 2016, current assets declined to US$17,846 million by 2018 before a slight rebound to US$18,700 million in 2019. The substantial increase occurring between 2014 and 2016 suggests significant acquisition or growth activities impacting liquidity or short-term asset holdings.

Total Assets

Total assets showed consistent growth from US$14,609 million in 2005 to US$72,688 million in 2016, nearly a fivefold increase. This growth was steady with notable acceleration between 2014 and 2016, where total assets nearly doubled from US$37,182 million to US$68,782 million. Following this peak, total assets slightly declined and stabilized around US$67,000 million through 2019. The spike in total assets during the mid-2010s likely results from strategic investments, acquisitions, or capital expansions in the business, as indicated by the parallel surge in current assets.

Overall Insights

The observed data indicates strategic growth initiatives leading to substantial asset accumulation between 2014 and 2016. Subsequent contractions in both current and total assets post-2016 might reflect asset optimization, divestitures, or adjustments following the intense expansion phase. The relative stabilization towards the end of the period implies the company managed to maintain a sizeable asset base while potentially seeking higher efficiency or focusing on core operations.

Current Liabilities

Over the examined period, current liabilities showed a general upward trend, increasing from 4,481 million USD in 2005 to 25,769 million USD in 2019. The growth was relatively steady with notable acceleration after 2013, where liabilities nearly tripled from 8,883 million USD to 25,769 million USD by 2019. This indicates an increasing short-term obligation burden on the company in recent years.

Total Debt

Total debt figures start from 2007 with 879 million USD and exhibit significant growth, particularly between 2010 and 2016, where debt rose sharply from 2,401 million USD to a peak of 19,028 million USD in 2016. Afterward, total debt declined to approximately 12,935 million USD in 2017 before slightly increasing again to 16,836 million USD by 2019. The data suggests active debt management with periods of substantial borrowing, especially noticeable in the mid-2010s.

Shareholders’ Equity

Shareholders’ equity grew steadily from 8,890 million USD in 2005 to a peak of 30,861 million USD in 2015. After reaching this peak, equity began to decline consistently, dropping to 23,512 million USD by 2019. The decline in equity over the last four years of the dataset could be indicative of either increased liabilities affecting retained earnings or possible share repurchases or losses reducing the equity base.

Overall Financial Position Insights

The data reveals an increasing leverage position, with current liabilities and total debt expanding significantly, especially post-2013. Meanwhile, shareholders’ equity has contracted after reaching a high point in 2015. This combination points to potential rising financial risk through increased debt and liabilities relative to equity. The company appears to be utilizing more debt financing, which may impact its financial stability and require close monitoring moving forward.

The analysis of the cash flow activities over the fifteen-year period reveals several significant trends and fluctuations in operating, investing, and financing cash flows.

Net Cash Provided by Operating Activities

Operating cash flow generally exhibits an upward trend from 2005 through 2018, increasing from $1,371 million to a peak of $8,265 million in 2018. This indicates improving efficiency and profitability in the company’s core operations over this period. However, there is a notable dip in 2019 to $5,594 million, suggesting a possible downturn or increased operational challenges in the most recent year.

Net Cash Used for Investing Activities

Investing cash flow is consistently negative throughout the period, reflecting continuous capital expenditures or acquisitions exceeding disposals. There are significant spikes in cash outflows in 2012 (-$5,860 million) and 2018 (-$5,501 million), which may indicate major investments or acquisitions during these years. The magnitude of investing outflows fluctuates but generally remains substantial, emphasizing consistent reinvestment in the business.

Net Cash Provided by (Used for) Financing Activities

Financing cash flow varies considerably, with both inflows and outflows observed across the years. Early years show predominant outflows, such as in 2005 (-$804 million) and 2010 (-$2,677 million), indicating debt repayments or dividend payments. In contrast, there are notable inflows in 2012 ($1,170 million) and 2016 ($2,606 million), which may be linked to new borrowings or equity issuances. A substantial outflow occurs in 2017 (-$12,934 million), the largest in the dataset, possibly reflecting major debt repayments or share buybacks. The variability in financing activities suggests active management of the capital structure in response to strategic needs or market conditions.

Overall, the company has generated increasingly strong operational cash flows, enabling substantial investments despite significant and variable financing activities. The large investing outflows paired with occasional large financing inflows and outflows reflect an aggressive investment strategy financed through variable external funding sources. The dip in operating cash flow in 2019 alongside continued investing outflows and moderate financing outflows may suggest emerging challenges or a phase of recalibration.

Basic Earnings Per Share (EPS)

The basic earnings per share demonstrated a generally upward trend from 2005 to 2019, starting at $1.53 in 2005 and reaching a peak of $5.07 in 2018 before declining to $4.32 in 2019. There were fluctuations within this period; notable declines occurred between 2011 and 2012, as well as from 2013 to 2014. The most significant increase was observed between 2013 and 2015, where EPS nearly doubled. Despite some volatility, the overall trajectory indicates substantial growth in earnings per share over the 15-year period.

Diluted Earnings Per Share (EPS)

The diluted earnings per share closely mirrored the basic EPS trends, maintaining slightly lower values throughout the timeline. The diluted EPS started at $1.52 in 2005 and rose steadily, reaching a high of $5.05 in 2018 followed by a decrease to $4.31 in 2019. Variations aligned with those seen in basic EPS, including declines around 2011–2012 and 2013–2014, and a strong upward movement between 2013 and 2015. Overall, diluted EPS trends confirm the growth in profitability, taking share dilution into account.

Dividend Per Share

The dividend per share exhibited a consistent upward trend throughout the entire period, increasing steadily from $0.22 in 2005 to $1.78 in 2019. There were no recorded decreases or stagnations in dividend payments, indicating a commitment to returning value to shareholders. The steady increase suggests stable cash flow generation and confidence in the company’s ongoing financial performance, supporting an increasing dividend policy over time.