Stock Analysis on Net
Stock Analysis on Net

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

$22.49

This company has been moved to the archive! The financial data has not been updated since July 9, 2020.

Analysis of Long-term (Investment) Activity Ratios

Microsoft Excel

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

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Long-term Activity Ratios (Summary)

Walgreens Boots Alliance Inc., long-term (investment) activity ratios

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Net fixed asset turnover
Total asset turnover
Equity turnover

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).

Net Fixed Asset Turnover
The net fixed asset turnover ratio exhibits a consistent upward trend over the six-year period. Starting from 6.23 in 2014, the ratio steadily increases each year, reaching 10.15 in 2019. This indicates an improving efficiency in utilizing fixed assets to generate revenue, suggesting enhanced operational management or increased asset productivity.
Total Asset Turnover
The total asset turnover ratio shows a more variable pattern. There is a noticeable decline from 2.05 in 2014 down to 1.5 in 2015, representing a decrease in asset efficiency. However, from 2015 onward, the ratio generally improves, increasing to 2.02 by 2019. This recovery points to a progressive enhancement in the company's ability to generate sales from its total asset base after an initial setback.
Equity Turnover
The equity turnover ratio demonstrates an overall increasing trend during the period analyzed. Beginning at 3.73 in 2014, it dips slightly to 3.35 in 2015 but then grows consistently every year, reaching 5.82 in 2019. This suggests that the company is generating increasing revenue for each unit of equity, reflecting potentially higher asset utilization or more effective equity financing strategies.

Net Fixed Asset Turnover

Walgreens Boots Alliance Inc., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Sales
Property, plant and equipment, net
Long-term Activity Ratio
Net fixed asset turnover1
Benchmarks
Net Fixed Asset Turnover, Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.

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).

1 2019 Calculation
Net fixed asset turnover = Sales ÷ Property, plant and equipment, net
= ÷ =

2 Click competitor name to see calculations.

Sales Trend
Sales demonstrate a consistent upward trend over the period analyzed, increasing from $76,392 million in 2014 to $136,866 million in 2019. This represents a substantial growth overall, with notable increments each year, indicating strong revenue expansion.
Property, Plant, and Equipment (PP&E), Net
The net value of property, plant, and equipment exhibits some fluctuations. Initially, it rises from $12,257 million in 2014 to a peak of $15,068 million in 2015. Following this, there is a gradual decline, reaching $13,478 million in 2019. This trend suggests a reduction in net fixed assets after 2015, possibly due to depreciation, asset sales, or limited new capital investments.
Net Fixed Asset Turnover
The net fixed asset turnover ratio shows a positive and steady increase from 6.23 in 2014 to 10.15 in 2019. This indicates that the company has improved the efficiency with which it uses its fixed assets to generate sales. The rising ratio suggests enhanced asset utilization over time, reflecting better management or higher sales volume relative to fixed asset base.
Summary Analysis
The data indicate that sales growth outpaces the investment in property, plant, and equipment, as shown by the increase in net fixed asset turnover ratio. The decline in net PP&E after 2015 alongside rising sales and turnover ratio could imply improved operational efficiency or strategic asset management. Overall, the company shows improved productivity of fixed assets while achieving substantial growth in sales revenue.

Total Asset Turnover

Walgreens Boots Alliance Inc., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Sales
Total assets
Long-term Activity Ratio
Total asset turnover1
Benchmarks
Total Asset Turnover, Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.

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).

1 2019 Calculation
Total asset turnover = Sales ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.

Sales
Sales demonstrated a consistent upward trajectory over the six-year period. Beginning at 76,392 million USD in 2014, sales increased each year, reaching 136,866 million USD by 2019. This represents an overall growth of approximately 79% over the period, with particularly notable increases between 2014 and 2015, and between 2017 and 2018.
Total Assets
Total assets experienced significant growth initially, more than doubling from 37,182 million USD in 2014 to 68,782 million USD in 2015. Following this, assets remained relatively stable, fluctuating moderately in the range of approximately 66,000 to 72,600 million USD through 2019. The peak was observed in 2016, after which there was a modest decline by 2019.
Total Asset Turnover
The total asset turnover ratio, reflecting the efficiency in using assets to generate sales, exhibited a declining trend from 2.05 in 2014 to a low of 1.5 in 2015. However, from 2015 onwards, there was a steady recovery and improvement, with the ratio increasing each year to reach 2.02 by 2019, nearing the initial 2014 level. This suggests an enhancement in asset utilization efficiency following the initial decline.
Summary Insights
Overall, the data indicate that sales grew strongly throughout the period, while asset growth was concentrated primarily in the early years, stabilizing afterward. The asset turnover ratio’s dip and subsequent recovery imply initial challenges in asset efficiency when assets expanded rapidly, followed by improved management and utilization of assets to support sales growth in later years. This pattern suggests the company managed to enhance operational efficiency after a phase of significant asset base expansion.

Equity Turnover

Walgreens Boots Alliance Inc., equity turnover calculation, comparison to benchmarks

Microsoft Excel
Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Selected Financial Data (US$ in millions)
Sales
Total Walgreens Boots Alliance, Inc. shareholders’ equity
Long-term Activity Ratio
Equity turnover1
Benchmarks
Equity Turnover, Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.

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).

1 2019 Calculation
Equity turnover = Sales ÷ Total Walgreens Boots Alliance, Inc. shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.

Sales Trend
Sales exhibited a general upward trajectory over the analyzed period from August 31, 2014, to August 31, 2019. Beginning at $76,392 million in 2014, sales increased substantially to $103,444 million in 2015 and continued to grow, reaching $136,866 million by 2019. This represents an overall increase of approximately 79% over the six-year span, with a consistent year-over-year growth except for a slight slowdown in the growth rate between 2016 and 2017.
Shareholders’ Equity Trend
Total shareholders’ equity displayed a declining trend across the same period. From an initial value of $20,457 million in 2014, equity rose sharply to $30,861 million in 2015, which was the highest point in the data series. After this peak, equity values showed a consistent decrease each year, falling to $23,512 million by 2019. This decreasing pattern following 2015 suggests potential factors such as share repurchases, dividend payments, or operational challenges reducing book equity over time.
Equity Turnover Ratio
The equity turnover ratio displayed a rising trend, indicating increasing efficiency in the use of shareholders’ equity to generate sales. Starting from 3.73 in 2014, the ratio dipped somewhat to 3.35 in 2015 but rebounded to 3.93 in 2016. Subsequently, it increased steadily to 5.82 by 2019. The ratio’s growth implies better utilization of equity capital, likely driven by the simultaneous increase in sales and decrease in equity.
Overall Analysis
The combined analysis of these metrics suggests the company achieved significant sales growth while reducing shareholders’ equity after 2015. The improved equity turnover ratio reflects higher efficiency in generating sales from equity capital. However, the decline in equity raises considerations about capitalization strategies and potential risks related to financial structure that may warrant further examination. The sustained increase in sales, coupled with equity reduction, suggests a strategic emphasis on expanding revenue through possibly increased leverage or capital optimization efforts.