Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Walgreens Boots Alliance Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-K (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30).
- Net fixed asset turnover
- The ratio shows a generally increasing trend from November 2014 onwards. Starting at 6.23, it experienced a slight dip to 5.41 in May 2014 but recovered quickly, reaching 10.61 by May 2020. This indicates improving efficiency in using fixed assets to generate sales over the analyzed period.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This metric closely follows the net fixed asset turnover ratio until November 2019, with values rising up to 10.15. However, there is a significant drop starting in February 2020, with the ratio falling to around 3.89 and only marginally increasing to 4 by May 2020. This decline likely reflects the impact of incorporating lease assets, possibly affected by changes in lease accounting standards or lease portfolio adjustments.
- Total asset turnover
- Total asset turnover was volatile in the early period but generally trends upwards over time. It starts at 2.05 in November 2014, drops sharply to 1.19 in May 2014, then gradually rises to peak at 2.02 by November 2019. A decline is noted afterward, with the ratio falling to 1.51 by February 2020 and modestly recovering to 1.61 by May 2020. This pattern suggests fluctuations in asset utilization efficiency, with potential recent impacts on asset base or sales levels.
- Equity turnover
- Equity turnover exhibits a clear upward trajectory across the period. Beginning at 3.73 in November 2014, after a decrease to 2.75 in May 2014, it steadily increases, achieving a high of 6.69 by May 2020. This increase denotes enhanced utilization of equity to generate revenue, reflecting either higher sales or changes in equity structure improving turnover.
Net Fixed Asset Turnover
Walgreens Boots Alliance Inc., net fixed asset turnover calculation (quarterly data)
| May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | Nov 30, 2018 | Aug 31, 2018 | May 31, 2018 | Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||||
| Sales | 34,631) | 35,820) | 34,339) | 33,954) | 34,591) | 34,528) | 33,793) | 33,442) | 34,334) | 33,021) | 30,740) | 30,149) | 30,118) | 29,446) | 28,501) | 28,636) | 29,498) | 30,184) | 29,033) | 28,522) | 28,795) | 26,573) | 19,554) | 19,057) | 19,401) | 19,605) | 18,329) | ||||||||
| Property, plant and equipment, net | 13,071) | 13,482) | 13,620) | 13,478) | 13,717) | 13,828) | 13,821) | 13,911) | 13,938) | 14,045) | 13,693) | 13,642) | 13,535) | 13,528) | 13,709) | 14,335) | 14,493) | 14,552) | 14,878) | 15,068) | 15,241) | 15,646) | 12,103) | 12,257) | 12,088) | 12,136) | 12,351) | ||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 10.61 | 10.29 | 10.09 | 10.15 | 9.94 | 9.84 | 9.74 | 9.46 | 9.20 | 8.83 | 8.80 | 8.67 | 8.62 | 8.58 | 8.52 | 8.19 | 8.09 | 8.01 | 7.59 | 6.87 | 6.17 | 5.41 | 6.41 | 6.23 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 7.31 | 7.21 | 7.12 | 7.15 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-K (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30).
1 Q3 2020 Calculation
Net fixed asset turnover
= (SalesQ3 2020
+ SalesQ2 2020
+ SalesQ1 2020
+ SalesQ4 2019)
÷ Property, plant and equipment, net
= (34,631 + 35,820 + 34,339 + 33,954)
÷ 13,071 = 10.61
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends across sales, net property, plant and equipment (PPE), and net fixed asset turnover over the observed periods.
- Sales
- Sales figures demonstrate an overall upward trajectory. Starting from approximately $18.3 billion in November 2013, sales generally increase over time, peaking around $35.8 billion in February 2020. While some fluctuations are observed within individual quarters, the general pattern suggests consistent revenue growth over the years. This growth is most apparent from early 2015 onwards, where sales increase steadily with only minor quarterly declines.
- Property, Plant and Equipment (net)
- The net value of property, plant and equipment shows a contrasting trend compared to sales. Beginning at about $12.4 billion in late 2013, it peaks near $15.6 billion in early 2015 and then gradually declines through to May 2020, ending near $13.1 billion. This downward movement may reflect asset disposals, depreciation, or reduced capital expenditure after 2015, indicating potentially tighter investment or increased asset efficiency measures over time.
- Net Fixed Asset Turnover
- Net fixed asset turnover, calculated as the ratio of sales to net fixed assets, exhibits strong growth during the available periods, from 6.23 in May 2014 up to 10.61 by May 2020. This steady increase implies improved utilization of fixed assets to generate sales. The ratio's growth, alongside rising sales and relatively stable or declining net fixed assets, suggests enhanced operational efficiency and possibly better asset management practices over the duration.
In summary, while the net fixed assets slightly decrease after an initial increase, sales show substantial growth which steadily improves the net fixed asset turnover ratio. This reflects an overall improvement in generating revenue from the company's asset base, pointing to enhanced operational efficiency and effective use of capital assets through the outlined quarters.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Walgreens Boots Alliance Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | Nov 30, 2018 | Aug 31, 2018 | May 31, 2018 | Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||||
| Sales | 34,631) | 35,820) | 34,339) | 33,954) | 34,591) | 34,528) | 33,793) | 33,442) | 34,334) | 33,021) | 30,740) | 30,149) | 30,118) | 29,446) | 28,501) | 28,636) | 29,498) | 30,184) | 29,033) | 28,522) | 28,795) | 26,573) | 19,554) | 19,057) | 19,401) | 19,605) | 18,329) | ||||||||
| Property, plant and equipment, net | 13,071) | 13,482) | 13,620) | 13,478) | 13,717) | 13,828) | 13,821) | 13,911) | 13,938) | 14,045) | 13,693) | 13,642) | 13,535) | 13,528) | 13,709) | 14,335) | 14,493) | 14,552) | 14,878) | 15,068) | 15,241) | 15,646) | 12,103) | 12,257) | 12,088) | 12,136) | 12,351) | ||||||||
| Operating lease right-of-use assets | 21,609) | 21,755) | 21,674) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||||
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 34,680) | 35,237) | 35,294) | 13,478) | 13,717) | 13,828) | 13,821) | 13,911) | 13,938) | 14,045) | 13,693) | 13,642) | 13,535) | 13,528) | 13,709) | 14,335) | 14,493) | 14,552) | 14,878) | 15,068) | 15,241) | 15,646) | 12,103) | 12,257) | 12,088) | 12,136) | 12,351) | ||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.00 | 3.94 | 3.89 | 10.15 | 9.94 | 9.84 | 9.74 | 9.46 | 9.20 | 8.83 | 8.80 | 8.67 | 8.62 | 8.58 | 8.52 | 8.19 | 8.09 | 8.01 | 7.59 | 6.87 | 6.17 | 5.41 | 6.41 | 6.23 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 6.48 | 6.43 | 6.35 | 7.15 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-K (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30).
1 Q3 2020 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (SalesQ3 2020
+ SalesQ2 2020
+ SalesQ1 2020
+ SalesQ4 2019)
÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= (34,631 + 35,820 + 34,339 + 33,954)
÷ 34,680 = 4.00
2 Click competitor name to see calculations.
The quarterly financial data reveals multiple significant trends in sales, property, plant and equipment (net), and net fixed asset turnover ratios over the period analyzed.
- Sales
- Sales show a general upward trend with some fluctuations. Beginning at approximately $18.3 billion in the quarter ending November 2013, sales gradually increased, reaching a peak near $35.8 billion in the quarter ending February 2020. Notable jumps appear between February 2014 and February 2015, as well as between November 2016 and February 2018, while some quarters exhibit minor declines or stabilization, such as in mid-2018 to late 2019.
- Property, Plant and Equipment, net (including operating lease, right-of-use asset)
- This asset category remained relatively stable and slightly declined during the earlier periods, from about $12.4 billion in late 2013 to approximately $13.5 billion in late 2019. However, there is a significant increase beginning around February 2020, with the net value dramatically rising to over $35 billion, suggesting the adoption of a new accounting treatment or acquisition of substantial assets related to operating leases or right-of-use assets.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The net fixed asset turnover ratio indicates increasing efficiency in asset utilization across most of the timeline. Starting from the value of 6.23 in May 2014, it generally rises through successive quarters, peaking close to 10.15 by November 2019. This trend reflects that sales revenues are growing faster relative to the net fixed assets, denoting improved asset management or operational enhancements. A notable drop occurs in early 2020, where the ratio declines to below 4.0, coinciding with the large increase in net fixed assets, likely influenced by revised lease accounting standards or a significant shift in asset reporting.
Overall, the data denote a consistent sales growth with efficient asset utilization improving until late 2019. The substantial rise in net property, plant and equipment values paired with a sharp decrease in turnover ratios from early 2020 highlights a shift in accounting or operational structure impacting asset measurements and performance metrics.
Total Asset Turnover
Walgreens Boots Alliance Inc., total asset turnover calculation (quarterly data)
| May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | Nov 30, 2018 | Aug 31, 2018 | May 31, 2018 | Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||||
| Sales | 34,631) | 35,820) | 34,339) | 33,954) | 34,591) | 34,528) | 33,793) | 33,442) | 34,334) | 33,021) | 30,740) | 30,149) | 30,118) | 29,446) | 28,501) | 28,636) | 29,498) | 30,184) | 29,033) | 28,522) | 28,795) | 26,573) | 19,554) | 19,057) | 19,401) | 19,605) | 18,329) | ||||||||
| Total assets | 86,444) | 90,003) | 90,807) | 67,598) | 68,586) | 70,434) | 69,941) | 68,124) | 70,152) | 70,816) | 66,618) | 66,009) | 74,173) | 72,505) | 71,912) | 72,688) | 67,333) | 66,385) | 68,657) | 68,782) | 70,644) | 71,357) | 48,612) | 37,182) | 37,391) | 37,081) | 36,481) | ||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||||
| Total asset turnover1 | 1.61 | 1.54 | 1.51 | 2.02 | 1.99 | 1.93 | 1.92 | 1.93 | 1.83 | 1.75 | 1.81 | 1.79 | 1.57 | 1.60 | 1.62 | 1.61 | 1.74 | 1.76 | 1.64 | 1.50 | 1.33 | 1.19 | 1.60 | 2.05 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 3.04 | 3.18 | 2.94 | 3.29 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-K (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30).
1 Q3 2020 Calculation
Total asset turnover
= (SalesQ3 2020
+ SalesQ2 2020
+ SalesQ1 2020
+ SalesQ4 2019)
÷ Total assets
= (34,631 + 35,820 + 34,339 + 33,954)
÷ 86,444 = 1.61
2 Click competitor name to see calculations.
The sales figures demonstrate a generally upward trend over the observed periods. Starting from approximately $18.3 billion in November 2013, sales increase with some fluctuations, reaching peaks above $35.8 billion by February 2020 before slightly declining by May 2020. This trend suggests overall revenue growth, with notable acceleration beginning in early 2015 and sustained sales levels thereafter, despite minor dips in some quarters.
Total assets display significant variability over the same periods. The asset base begins near $36.5 billion in late 2013, then rises sharply to over $71 billion by early 2015. Following this peak, asset levels fluctuate but generally maintain an elevated range between $66 billion and $72 billion until late 2019. A pronounced jump occurs again in early 2020, with assets nearing $91 billion before a modest decline, pointing to potential major investments or acquisitions during these times.
Total asset turnover ratios show considerable variation but indicate improving asset efficiency in several intervals. The data starts being available from mid-2014, with turnovers ranging from 1.19 to 2.05. After an initial dip, the ratio generally rises, peaking around 2.02 in late 2019. However, there is a noteworthy drop to near 1.51 by early 2020, which might reflect the substantial increase in assets not immediately matched by proportional sales growth, suggesting a temporary decline in asset utilization efficiency.
- Sales Trend
- Overall upward trajectory with increments from about $18.3 billion to peaks above $35 billion, indicating sustained revenue growth with some fluctuations.
- Total Assets
- Marked increase from under $37 billion to highs near $91 billion, punctuated by periods of stabilization and sharp jumps, implying strategic capital expansion or acquisitions.
- Total Asset Turnover
- Initially fluctuating between 1.19 and 2.05, showing gradual improvement in asset efficiency until late 2019, followed by a decline correlating with asset base expansion, highlighting possible short-term inefficiencies.
Equity Turnover
Walgreens Boots Alliance Inc., equity turnover calculation (quarterly data)
| May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | Feb 28, 2019 | Nov 30, 2018 | Aug 31, 2018 | May 31, 2018 | Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||||
| Sales | 34,631) | 35,820) | 34,339) | 33,954) | 34,591) | 34,528) | 33,793) | 33,442) | 34,334) | 33,021) | 30,740) | 30,149) | 30,118) | 29,446) | 28,501) | 28,636) | 29,498) | 30,184) | 29,033) | 28,522) | 28,795) | 26,573) | 19,554) | 19,057) | 19,401) | 19,605) | 18,329) | ||||||||
| Total Walgreens Boots Alliance, Inc. shareholders’ equity | 20,736) | 23,720) | 23,661) | 23,512) | 24,133) | 24,770) | 25,609) | 26,007) | 27,736) | 27,355) | 25,929) | 27,466) | 30,600) | 30,067) | 29,325) | 29,880) | 30,881) | 29,506) | 30,709) | 30,861) | 31,563) | 30,814) | 20,636) | 20,457) | 21,417) | 20,784) | 20,021) | ||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||||
| Equity turnover1 | 6.69 | 5.85 | 5.81 | 5.82 | 5.65 | 5.49 | 5.26 | 5.06 | 4.62 | 4.53 | 4.65 | 4.30 | 3.81 | 3.86 | 3.98 | 3.93 | 3.80 | 3.95 | 3.68 | 3.35 | 2.98 | 2.75 | 3.76 | 3.73 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 9.37 | 9.32 | 9.54 | 9.80 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2020-05-31), 10-Q (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-K (reporting date: 2019-08-31), 10-Q (reporting date: 2019-05-31), 10-Q (reporting date: 2019-02-28), 10-Q (reporting date: 2018-11-30), 10-K (reporting date: 2018-08-31), 10-Q (reporting date: 2018-05-31), 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30).
1 Q3 2020 Calculation
Equity turnover
= (SalesQ3 2020
+ SalesQ2 2020
+ SalesQ1 2020
+ SalesQ4 2019)
÷ Total Walgreens Boots Alliance, Inc. shareholders’ equity
= (34,631 + 35,820 + 34,339 + 33,954)
÷ 20,736 = 6.69
2 Click competitor name to see calculations.
The financial data for the periods from November 2013 through May 2020 reveals notable trends across sales, shareholders’ equity, and equity turnover ratios.
- Sales Trends
- Sales expressed in millions of US dollars demonstrate a general upward trajectory with some fluctuations. Initially, sales increased steadily from $18,329 million in November 2013 to a peak of $29,554 million in November 2014. A significant jump occurs in the subsequent period beginning February 2015, when sales rose sharply to $26,573 million and continued expanding to reach $35,820 million by February 2020. Some minor declines are observed, such as the dip from August 2018 ($33,442 million) to November 2018 ($33,793 million) and between August 2019 ($34,591 million) and February 2020 ($34,631 million), but the overall trend remains positive, indicating consistent revenue growth over the timeframe.
- Shareholders’ Equity
- Shareholders’ equity shows more variability and a somewhat declining trend in the latter years. Beginning at approximately $20,021 million in November 2013, equity increased through 2014 and early 2015, peaking around $30,814 million in February 2015. Thereafter, fluctuations are apparent with a general downward movement from mid-2017. For instance, equity drops from $30,600 million in May 2017 to $23,720 million by May 2020. This decline in shareholders’ equity even as sales increased could indicate higher leverage, share buybacks, dividend payments, or retained earnings changes affecting the equity base.
- Equity Turnover Ratio
- The equity turnover ratio, which reflects the efficiency of the company in generating sales from its equity, shows a rising trend throughout the periods available. Starting from a ratio around 3.73 in August 2014, the ratio steadily climbs to 6.69 by May 2020. This improvement suggests that the company is generating more sales per unit of shareholders’ equity, which could be a result of increased operational efficiency, effective asset management, or the impacting decline in the equity base.
Overall, the data reflects a company with increasing sales and improving efficiency in utilizing shareholder equity, despite a declining equity base in more recent periods. The rising equity turnover ratio is a positive efficiency indicator, though the decrease in total shareholders’ equity warrants further analysis regarding the underlying causes and potential risks to financial stability.