Total Asset Turnover
since 2005
Calculation
Walgreens Boots Alliance Inc., total asset turnover, long-term trends, calculation
| Total asset turnover | = | Sales1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Aug 31, 2019 | 2.02 | = | 136,866) | ÷ | 67,598) |
| Aug 31, 2018 | 1.93 | = | 131,537) | ÷ | 68,124) |
| Aug 31, 2017 | 1.79 | = | 118,214) | ÷ | 66,009) |
| Aug 31, 2016 | 1.61 | = | 117,351) | ÷ | 72,688) |
| Aug 31, 2015 | 1.50 | = | 103,444) | ÷ | 68,782) |
| Aug 31, 2014 | 2.05 | = | 76,392) | ÷ | 37,182) |
| Aug 31, 2013 | 2.04 | = | 72,217) | ÷ | 35,481) |
| Aug 31, 2012 | 2.14 | = | 71,633) | ÷ | 33,462) |
| Aug 31, 2011 | 2.63 | = | 72,184) | ÷ | 27,454) |
| Aug 31, 2010 | 2.57 | = | 67,420) | ÷ | 26,275) |
| Aug 31, 2009 | 2.52 | = | 63,335) | ÷ | 25,142) |
| Aug 31, 2008 | 2.63 | = | 59,034) | ÷ | 22,410) |
| Aug 31, 2007 | 2.78 | = | 53,762) | ÷ | 19,314) |
| Aug 31, 2006 | 2.77 | = | 47,409) | ÷ | 17,131) |
| Aug 31, 2005 | 2.89 | = | 42,202) | ÷ | 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 analysis of asset utilization from 2005 to 2019 reveals a general decline in the total asset turnover ratio, characterized by a significant structural shift in 2015 followed by a period of steady recovery. While total sales grew consistently over the 14-year period, the efficiency with which assets were used to generate those sales fluctuated significantly.
- Long-term Efficiency Trajectory
- From 2005 to 2011, total asset turnover remained relatively stable, though it trended slightly downward from a peak of 2.89 to 2.63. A more pronounced decline began in 2012, with the ratio falling to 2.14 and reaching 2.05 by 2014. This indicates that during the first decade of the period, assets were becoming marginally less productive in generating revenue.
- 2015 Asset Expansion and Efficiency Drop
- A sharp contraction in efficiency is observed in 2015, where the total asset turnover ratio reached its minimum value of 1.50. This decline is directly correlated with a massive increase in the asset base, which surged from 37,182 million USD in 2014 to 68,782 million USD in 2015. Although sales also increased significantly during this transition, the growth in total assets outpaced the growth in sales, leading to a temporary reduction in turnover efficiency.
- Post-2015 Recovery Trend
- Following the 2015 trough, a consistent upward trend in asset turnover is evident. The ratio improved annually from 1.61 in 2016 to 2.02 by August 31, 2019. This progression suggests a successful effort to optimize the expanded asset base and increase revenue generation relative to the total investment in assets, returning the ratio to levels similar to those observed in 2014.
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Comparison to Competitors
Walgreens Boots Alliance Inc., total asset turnover, long-term trends, comparison to competitors
| Walgreens Boots Alliance Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Aug 31, 2019 | 2.02 | 3.29 | 1.83 | 2.33 |
| Aug 31, 2018 | 1.93 | 3.39 | 1.84 | 2.42 |
| Aug 31, 2017 | 1.79 | 3.47 | 1.86 | 2.42 |
| Aug 31, 2016 | 1.61 | 3.50 | 1.83 | 2.40 |
| Aug 31, 2015 | 1.50 | 3.40 | 1.75 | 2.37 |
| Aug 31, 2014 | 2.05 | 3.34 | 1.63 | 2.31 |
| Aug 31, 2013 | 2.04 | 3.40 | 1.52 | 2.29 |
| Aug 31, 2012 | 2.14 | 3.58 | 1.50 | 2.29 |
| Aug 31, 2011 | 2.63 | 3.25 | 1.54 | 2.32 |
| Aug 31, 2010 | 2.57 | 3.20 | 1.47 | 2.37 |
| Aug 31, 2009 | 2.52 | 3.18 | 1.47 | 2.46 |
| Aug 31, 2008 | 2.63 | 3.43 | 1.42 | 2.29 |
| Aug 31, 2007 | 2.78 | 3.22 | 1.59 | 2.28 |
| Aug 31, 2006 | 2.77 | 3.37 | 1.50 | 2.26 |
| Aug 31, 2005 | 2.89 | 3.14 | 1.45 | 2.37 |
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 Sector (Consumer Staples Distribution & Retail)
Walgreens Boots Alliance Inc., total asset turnover, long-term trends, comparison to sector (consumer staples distribution & retail)
| Walgreens Boots Alliance Inc. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Aug 31, 2019 | 2.02 | 2.40 |
| Aug 31, 2018 | 1.93 | 2.48 |
| Aug 31, 2017 | 1.79 | 2.48 |
| Aug 31, 2016 | 1.61 | 2.45 |
| Aug 31, 2015 | 1.50 | 2.40 |
| Aug 31, 2014 | 2.05 | 2.32 |
| Aug 31, 2013 | 2.04 | 2.28 |
| Aug 31, 2012 | 2.14 | 2.29 |
| Aug 31, 2011 | 2.63 | 2.28 |
| Aug 31, 2010 | 2.57 | 2.29 |
| Aug 31, 2009 | 2.52 | 2.34 |
| Aug 31, 2008 | 2.63 | 2.22 |
| Aug 31, 2007 | 2.78 | 2.25 |
| Aug 31, 2006 | 2.77 | 2.22 |
| Aug 31, 2005 | 2.89 | 2.27 |
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., total asset turnover, long-term trends, comparison to industry (consumer staples)
| Walgreens Boots Alliance Inc. | Consumer Staples | |
|---|---|---|
| Aug 31, 2019 | 2.02 | 1.39 |
| Aug 31, 2018 | 1.93 | 1.39 |
| Aug 31, 2017 | 1.79 | 1.34 |
| Aug 31, 2016 | 1.61 | 1.35 |
| Aug 31, 2015 | 1.50 | 1.37 |
| Aug 31, 2014 | 2.05 | 1.32 |
| Aug 31, 2013 | 2.04 | 1.30 |
| Aug 31, 2012 | 2.14 | 1.30 |
| Aug 31, 2011 | 2.63 | 1.27 |
| Aug 31, 2010 | 2.57 | 1.24 |
| Aug 31, 2009 | 2.52 | 1.36 |
| Aug 31, 2008 | 2.63 | 1.35 |
| Aug 31, 2007 | 2.78 | 1.32 |
| Aug 31, 2006 | 2.77 | 1.33 |
| Aug 31, 2005 | 2.89 | 1.52 |
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).