Walgreens Boots Alliance Inc. (NASDAQ:WBA)

Total Asset Turnover

Both reported and adjusted total asset turnover ratios exhibit an overall upward trend from 2014 to 2019. The reported total asset turnover increased from 2.05 in 2014 to 2.02 in 2019, showing a trough in 2015 at 1.5 but recovering thereafter. The adjusted ratio follows a similar pattern, rising steadily from 1.14 in 2014 to 1.4 in 2019, indicating improving efficiency in asset utilization over the period.

Current Ratio

The reported current ratio shows a declining trend over the six-year period, decreasing from 1.38 in 2014 to 0.73 in 2019, suggesting a reduction in short-term liquidity. The adjusted current ratio displays a similar pattern, albeit initially higher, declining from 1.65 to 0.85. This consistent decrease may indicate growing short-term liabilities or a conservative approach to holding current assets.

Debt to Equity

The reported debt to equity ratio rose steadily from 0.22 in 2014 to 0.72 in 2019, reflecting an increasing reliance on debt financing relative to equity. The adjusted debt to equity ratio, which is higher, also increased from 1.32 to 1.45 over the same period, corroborating this trend. This indicates a growing financial leverage and possibly higher financial risk.

Debt to Capital

The reported debt to capital ratio increased from 0.18 to 0.42 between 2014 and 2019, confirming a rise in the proportion of debt in the company's capital structure. The adjusted version shows a modest increase from 0.57 to 0.59, suggesting sustained leverage when considering adjusted figures.

Financial Leverage

Both reported and adjusted financial leverage ratios show an increasing trend, signaling that the company is taking on more debt relative to equity. The reported ratio grew from 1.82 to 2.88, while the adjusted ratio rose from 2.78 to 3.24. This reflects higher use of borrowed funds, which may amplify returns but also raises financial risk.

Net Profit Margin

The reported net profit margin fluctuated over the period, starting at 2.53% in 2014, peaking at 4.08% in 2015, then declining to 2.91% by 2019. Adjusted margins similarly rose initially but showed more variability, with a significant dip to 0.99% in 2016. The overall pattern suggests some volatility in profitability, with margins shrinking toward the end of the period.

Return on Equity (ROE)

The reported ROE showed a positive trend, increasing from 9.44% in 2014 to 16.94% in 2019, peaking at 19.32% in 2018. The adjusted ROE, however, exhibited greater fluctuation, with a noticeable dip to 3.25% in 2016 before recovering to 11.66% in 2019. The divergence between reported and adjusted values indicates variability possibly due to extraordinary items or accounting adjustments.

Return on Assets (ROA)

The reported ROA increased from 5.2% in 2014 to a peak of 7.37% in 2018, then declined to 5.89% in 2019. Adjusted ROA figures followed a lower trajectory, with a significant drop to 1.13% in 2016 and a moderate recovery thereafter. The general trend suggests improved asset profitability through 2018, with some weakening in the final year.

The financial data exhibits notable trends in sales, asset bases, and efficiency ratios over the six-year period under review.

Sales

Sales showed consistent growth annually, rising from US$76,392 million in 2014 to US$136,866 million in 2019. This represents an approximate 79.3% increase over the period, indicating steady revenue expansion.

Total Assets

Total assets nearly doubled from US$37,182 million in 2014 to a peak of US$72,688 million in 2016, followed by a moderate decline and stabilization around US$67,598 million in 2019. The sharp increase through 2016 suggests significant asset acquisition or revaluation during that period, while the subsequent decrease reflects possible divestitures or asset optimization.

Reported Total Asset Turnover

The reported total asset turnover ratio declined from 2.05 in 2014 to 1.5 in 2015, indicating reduced efficiency in utilizing assets to generate sales. However, this ratio improved steadily thereafter, reaching 2.02 by 2019, almost recovering to the initial level. This trend indicates an enhancement in asset use efficiency in the latter years.

Adjusted Total Assets

Adjusted total assets lagged behind the reported total assets in absolute value but demonstrated a rising pattern from US$67,054 million in 2014 to a peak of US$103,134 million in 2016. Following this peak, adjusted assets slightly declined and stabilized near US$97,521 million by 2019, mirroring the movement observed in reported assets but at a higher base level.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio decreased from 1.14 in 2014 to 1.02 in 2015, reflecting a temporary drop in efficiency. Subsequently, it trended upward every year to reach 1.40 in 2019. Although lower than the reported turnover ratio, this steady improvement suggests ongoing efforts to better leverage asset base when accounting for adjustments.

Overall, the company experienced significant growth in sales alongside substantial increases and subsequent normalization in asset holdings. Efficiency ratios initially declined but subsequently improved consistently, demonstrating enhanced asset utilization despite the increased asset base. The adjusted metrics reinforce the observed pattern of improving operational efficiency after an initial dip.

The annual financial data reveals distinct trends in liquidity indicators over the six-year period under review. Current assets exhibited an overall increase from 12,242 million USD in 2014 to a peak of 25,883 million USD in 2016, followed by a decline in subsequent years, reaching a lower level of 18,700 million USD in 2019 compared to the peak. Conversely, current liabilities consistently rose each year, nearly tripling from 8,895 million USD in 2014 to 25,769 million USD in 2019.

The reported current ratio experienced a declining trajectory throughout the period. Starting at 1.38 in 2014, it decreased to 0.73 by 2019, indicating a diminishing short-term liquidity cushion relative to current obligations. This decline underscores increasing pressure on the company's ability to cover its current liabilities with its current assets.

When considering adjusted current assets, which presumably account for certain asset quality or liquidity considerations, the pattern was similar to that of reported current assets: an increase from 14,715 million USD in 2014 to 28,849 million USD in 2016, followed by a decrease to 21,995 million USD in 2019. The adjusted current ratio mirrored the declining trend observed in the reported current ratio, falling from 1.65 in 2014 to 0.85 in 2019.

Overall, the data indicates that despite fluctuations and an initial period of asset growth, the company's short-term liquidity position has weakened over the years. The consistent rise in current liabilities has outpaced growth in both reported and adjusted current assets, resulting in reduced current ratios. This trend suggests a potential area of concern regarding the management of working capital and short-term financial stability.

Current assets

Increased substantially until 2016, then declined but remained above 2014 levels.

Current liabilities

Demonstrated persistent and considerable growth, nearly tripling over the period.

Reported current ratio

Declined progressively from a healthy level above 1.0 to below 1.0, signaling deteriorated liquidity.

Adjusted current assets

Followed a similar pattern as current assets with a peak in 2016, then declined but remained higher than initial years.

Adjusted current ratio

Consistently declined yet maintained slightly higher values than the reported current ratio but still dropped below 1.0 by 2019.

The financial data exhibits several noteworthy trends regarding the company's leverage and equity base over the period from 2014 to 2019.

Total Debt

Total debt increased significantly from 4,510 million US dollars in 2014 to 14,383 million in 2015, reflecting a more than threefold rise. The upward trend continued with a peak of 19,028 million in 2016. This was followed by a decline to 12,935 million in 2017, before rising again to 14,397 million in 2018 and further to 16,836 million by 2019. Overall, total debt shows considerable volatility but maintains a higher level in the later years compared to the start.

Total Shareholders’ Equity

Shareholders’ equity grew substantially from 20,457 million in 2014 to a peak of 30,861 million in 2015. After this peak, equity decreased gradually each year, ending at 23,512 million in 2019. This indicates an initial strengthening of the equity base followed by a steady reduction over the subsequent years.

Reported Debt to Equity Ratio

The reported debt to equity ratio rose from 0.22 in 2014 to 0.47 in 2015, and further to 0.64 in 2016, demonstrating increased leverage. The ratio then declined to 0.47 in 2017 but rose again to 0.55 in 2018 and reached its highest level at 0.72 in 2019. This trend reveals a generally increasing reliance on debt relative to equity, with fluctuations in certain years.

Adjusted Total Debt

Adjusted total debt exhibits a steady increase over the period, starting at 31,909 million in 2014 and rising to 44,186 million in 2015. It peaked at 46,508 million in 2016 before declining to 39,129 million in 2017. Following this, it increased again to 41,021 million in 2018 and 43,464 million in 2019. This trend similarly indicates increased leverage with some variation mid-period.

Adjusted Total Equity

Adjusted total equity rose from 24,157 million in 2014 to 37,513 million in 2015, then declined progressively to 30,068 million by 2019. The pattern mirrors that of reported equity, indicating a peak followed by sustained decreases.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreased slightly from 1.32 in 2014 to 1.18 in 2015, but then fluctuated upward with values of 1.30 in 2016, 1.14 in 2017, 1.27 in 2018, and reaching 1.45 in 2019. This indicates an overall increase in financial leverage when using adjusted figures, with some short-term variations.

In summary, the data reveal an overall pattern of increasing debt levels, both reported and adjusted, with a corresponding decline in shareholders’ equity after an initial rise. This results in progressively higher leverage ratios over the years. The fluctuations in debt and equity suggest active management of capital structure, but the trend towards higher indebtedness may imply increased financial risk. Close observation of this pattern is advisable to assess its impact on financial stability.

Total Debt

The total debt exhibited notable volatility over the examined period. An initial significant increase occurred from 4,510 million USD in 2014 to 14,383 million USD in 2015, followed by a continued rise to 19,028 million USD in 2016. Subsequently, total debt dropped markedly to 12,935 million USD in 2017 before increasing again to 16,836 million USD by 2019. This pattern suggests fluctuating debt management or refinancing activities.

Total Capital

Total capital more than doubled from 24,967 million USD in 2014 to 45,244 million USD in 2015 and further grew to 48,908 million USD in 2016. After this peak, it decreased to around 40,400 million USD in 2017 and remained relatively stable through 2019. This trend indicates an initial expansion followed by stabilization in capital structure.

Reported Debt to Capital Ratio

This ratio mirrors changes in total debt relative to total capital. It rose from 0.18 in 2014 to 0.32 in 2015 and peaked at 0.39 in 2016. Afterwards, it declined to 0.32 in 2017, then increased gradually to 0.42 by 2019. The increase over time reflects a growing reliance on debt financing compared to equity or other capital sources.

Adjusted Total Debt

Adjusted total debt shows a general upward trend, starting at 31,909 million USD in 2014 and rising to 43,464 million USD in 2019. There was a decrease from 46,508 million USD in 2016 to 39,129 million USD in 2017, followed by a renewed increase. This pattern is broadly consistent with fluctuations in reported total debt, but at higher absolute values due to adjustments.

Adjusted Total Capital

Adjusted total capital increased substantially from 56,066 million USD in 2014 to a peak near 82,396 million USD in 2016. It then declined to around 73,285 million USD in 2018 and remained stable through 2019. The trend suggests an expansion phase up to 2016, followed by consolidation.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio remained in a relatively narrow range between 0.53 and 0.59 throughout the period, indicating a consistently moderate to high level of debt relative to adjusted capital. Minor fluctuations reflect variations in both debt and capital but suggest a steady capital structure strategy focused on balanced leverage.

Total Assets

Total assets experienced a significant increase from 37,182 million USD in 2014 to 68,782 million USD in 2015, marking a substantial growth. Subsequently, the asset base grew modestly to 72,688 million USD in 2016 before declining to 66,009 million USD in 2017. The figures remained relatively stable thereafter, with values around 68,124 million USD in 2018 and a slight decrease to 67,598 million USD in 2019. This suggests an initial phase of rapid expansion followed by a period of contraction and stabilization.

Total Shareholders’ Equity

Shareholders’ equity demonstrated a rising trend from 20,457 million USD in 2014 to a peak of 30,861 million USD in 2015. After this peak, equity gradually decreased each year, reaching 23,512 million USD in 2019. This downward progression indicates erosion in equity value despite the initial growth, which could reflect impacts such as increased liabilities or financial restructuring.

Reported Financial Leverage

The reported financial leverage ratio increased steadily from 1.82 in 2014 to 2.88 in 2019. This upward trend suggests a growing proportion of debt relative to equity, which implies a higher financial risk profile over the period.

Adjusted Total Assets

Adjusted total assets rose markedly from 67,054 million USD in 2014 to a peak of 103,134 million USD in 2016, indicating significant balance sheet expansion during this period. After 2016, adjusted assets declined, reaching approximately 97,521 million USD in 2019, mirroring the trend observed in total assets but at a higher scale owing to adjustments.

Adjusted Total Equity

Adjusted equity followed a similar pattern to reported equity, increasing to a high of 37,513 million USD in 2015, then undergoing a consistent decline to 30,068 million USD by 2019. This decline alongside rising assets implies increased leverage and potential pressures on the company’s net worth on an adjusted basis.

Adjusted Financial Leverage

Adjusted financial leverage showed some volatility but an overall increasing trend from 2.78 in 2014 to 3.24 in 2019. Despite a slight dip in 2015, the ratio rose notably after 2017, indicating a progressively higher reliance on debt financing when adjustments are considered.

Over the analyzed period, sales demonstrate a consistent upward trajectory, rising from 76,392 million USD in 2014 to 136,866 million USD in 2019. This steady increase suggests continuous growth in revenue-generating activities.

Net earnings attributable to Walgreens Boots Alliance Inc.

Net earnings display variability across the time frame. Starting at 1,932 million USD in 2014, there is a significant increase peaking at 4,220 million USD in 2015. Subsequently, net earnings fluctuate slightly, with values near 4,000 million USD until 2018, where a peak of 5,024 million USD occurs, followed by a decline to 3,982 million USD in 2019. This pattern indicates some volatility in profitability despite the growth in sales.

Reported net profit margin

The reported net profit margin mirrors the trend observed in net earnings, increasing from 2.53% in 2014 to a high of 4.08% in 2015, then experiencing a gradual decline to 2.91% by 2019. The diminishing margin in the latter years suggests increasing costs or other factors adversely impacting the proportion of net earnings relative to sales.

Adjusted net earnings

The adjusted net earnings reveal considerable fluctuations, beginning at 2,701 million USD in 2014 and rising to 4,077 million USD in 2015. A sharp drop to 1,165 million USD occurs in 2016, after which adjusted earnings recover to surpass prior levels in 2017 and 2018, reaching 4,825 million USD. However, 2019 sees a decline to 3,507 million USD. This volatility indicates that adjustments, possibly for non-recurring items, have a significant impact on reported adjusted profitability.

Adjusted net profit margin

Adjusted net profit margin trends align with adjusted net earnings, starting at 3.54% in 2014, peaking around 3.94% in 2015, dropping to 0.99% in 2016, then rebounding to 3.67% in 2018 before declining again to 2.56% in 2019. Such fluctuations highlight variations in underlying profitability when excluding certain items, underscoring volatility in operational efficiency or one-time events.

Overall, sales growth is strong and consistent, but profitability margins, both reported and adjusted, exhibit volatility and a downward trend in the latter part of the period. The fluctuations in adjusted earnings reflect the influence of significant adjustments on the company’s earnings profile, implying varying operational conditions or accounting considerations. The declining net profit margins in the most recent years indicate challenges in maintaining profit efficiency despite increasing revenue.

The financial data reveals distinct trends in the company's profitability, equity base, and return measures over the six-year period ending in 2019.

Net Earnings Attributable

Net earnings showed an overall positive trend from 2014 to 2018, with a substantial increase from 1,932 million USD in 2014 to a peak of 5,024 million USD in 2018. However, 2019 witnessed a noticeable decline to 3,982 million USD, indicating potential volatility or challenges impacting net profitability during that year.

Total Shareholders’ Equity

Total equity rose significantly from 20,457 million USD in 2014 to 30,861 million USD in 2015, before demonstrating a consistent downward trajectory through 2019, ending at 23,512 million USD. This decline after the peak suggests possible asset reductions, dividends, share repurchases, or other equity-decreasing transactions occurring after 2015.

Reported Return on Equity (ROE)

The reported ROE exhibits a generally upward trend from 9.44% in 2014 to a high of 19.32% in 2018, reflecting increased efficiency in generating net earnings from equity. Despite the peak in 2018, ROE dropped to 16.94% in 2019, consistent with the reduction in net earnings and equity base in the latest year.

Adjusted Net Earnings

Adjusted net earnings depict a less stable pattern compared to reported net earnings. Initial growth from 2,701 million USD in 2014 to 4,077 million USD in 2015 was followed by a sharp drop to 1,165 million USD in 2016. Recovery occurred in subsequent years with increases to 4,052 million USD in 2017 and a peak of 4,825 million USD in 2018, before another decline to 3,507 million USD in 2019. This volatility suggests significant adjustments impacting earnings, possibly due to restructuring, impairments, or other one-time items.

Adjusted Total Equity

Adjusted total equity experienced a substantial increase from 24,157 million USD in 2014 to 37,513 million USD in 2015, followed by a gradual decrease each year to 30,068 million USD by 2019. This trend parallels that of reported total equity but at consistently higher levels, indicating adjustments that boost the equity base beyond reported figures.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE displays variability with a moderate decline from 11.18% in 2014 to a low of 3.25% in 2016, consistent with the sharp drop in adjusted net earnings. Recovery is evident in the following years, rising to 14.95% in 2018 before falling again to 11.66% in 2019. The fluctuations in adjusted ROE align with the volatility seen in adjusted net earnings and the gradual decline in adjusted equity.

In summary, the data show a company that experienced growth in earnings and equity through the mid-2010s, peaking around 2017-2018, followed by decreases in 2019. The divergence between reported and adjusted earnings and equity highlights the significance of one-time adjustments on financial performance. Both profitability and equity measures demonstrate sensitivity to these adjustments, impacting return ratios and indicating variability in operating performance and capital structure management during the period analyzed.

The financial performance of the company displays varied trends over the analyzed periods. Net earnings attributable to the company increased significantly from 2014 to 2015, rising from 1,932 million US dollars to 4,220 million US dollars, followed by a slight decrease and relative stability through 2016 and 2017. A notable increase occurred again in 2018, reaching 5,024 million US dollars, before declining to 3,982 million US dollars in 2019. This pattern indicates fluctuations in profitability, with a peak in 2018.

Total assets saw a substantial growth from 37,182 million US dollars in 2014 to 68,782 million US dollars in 2015, maintaining an upward trend until 2016 at 72,688 million US dollars. Subsequently, total assets decreased in 2017 to 66,009 million US dollars and then slightly increased but remained relatively stable around the mid to high 60,000 million US dollars range through 2018 and 2019. This suggests a period of asset accumulation followed by stabilization and slight reduction.

The reported Return on Assets (ROA) showed improvement from 5.2% in 2014 to 6.14% in 2015, with a minor decline in 2016 to 5.74%. It rebounded in 2017 to 6.18% and peaked in 2018 at 7.37%, indicating enhanced efficiency in using assets to generate earnings. However, in 2019, ROA decreased to 5.89%, reflecting a reduction in asset utilization effectiveness.

Adjusted net earnings present a different pattern, with a significant decrease in 2016 to 1,165 million US dollars after an initial rise from 2,701 million US dollars in 2014 to 4,077 million US dollars in 2015. The adjusted earnings rebounded strongly in 2017 and 2018, reaching a peak of 4,825 million US dollars, before declining to 3,507 million US dollars in 2019. This volatility in adjusted net earnings suggests variability in operational performance or the impact of special items excluded from reported earnings.

Adjusted total assets increased substantially from 67,054 million US dollars in 2014 to 101,257 million US dollars in 2015, followed by further growth to 103,134 million US dollars in 2016. After that, adjusted total assets decreased to 95,361 million US dollars in 2017 and remained relatively stable around 97,000 million US dollars in 2018 and 2019. This pattern mirrors the trend in total assets but on a higher base, indicating variations in asset adjustments applied.

Adjusted ROA remained stable at 4.03% in both 2014 and 2015, before dropping sharply to 1.13% in 2016. It recovered to 4.25% in 2017 and showed a further increase to 4.93% in 2018, followed by a downward movement to 3.6% in 2019. The fluctuations in adjusted ROA point to changing efficiency levels when considering adjustments to earnings and assets, with significant deterioration in 2016 and a partial recovery thereafter.

Summary of Key Trends

The data reveals pronounced volatility in both earnings and asset values, with significant peaks in 2015 and 2018, and declines in 2016 and 2019.

Reported profitability, as evidenced by net earnings and ROA, generally improved from 2014 to 2018, followed by a decrease in 2019.

Adjusted earnings and ROA exhibit wide fluctuations, implying the influence of non-recurring factors or accounting adjustments on performance measures.

Asset levels increased notably in the earlier years, then stabilized or slightly declined, indicating shifts in asset management or portfolio composition.

The disparity between reported and adjusted figures highlights the importance of analyzing both views to understand the company’s financial health comprehensively.