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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Walgreens Boots Alliance's annualized net income for the quarter that ended in Aug. 2024 was $-12,020 Mil. Walgreens Boots Alliance's average Total Stockholders Equity over the quarter that ended in Aug. 2024 was $12,044 Mil. Therefore, Walgreens Boots Alliance's annualized ROE % for the quarter that ended in Aug. 2024 was -99.80%.
The historical rank and industry rank for Walgreens Boots Alliance's ROE % or its related term are showing as below:
During the past 13 years, Walgreens Boots Alliance's highest ROE % was 18.79%. The lowest was -56.69%. And the median was 13.98%.
The historical data trend for Walgreens Boots Alliance's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Walgreens Boots Alliance Annual Data | |||||||||||||||||||||
Trend | Aug15 | Aug16 | Aug17 | Aug18 | Aug19 | Aug20 | Aug21 | Aug22 | Aug23 | Aug24 | |||||||||||
ROE % | Get a 7-Day Free Trial | 2.07 | 11.54 | 17.81 | -13.60 | -56.69 |
Walgreens Boots Alliance Quarterly Data | ||||||||||||||||||||
Nov19 | Feb20 | May20 | Aug20 | Nov20 | Feb21 | May21 | Aug21 | Nov21 | Feb22 | May22 | Aug22 | Nov22 | Feb23 | May23 | Aug23 | Nov23 | Feb24 | May24 | Aug24 | |
ROE % | Get a 7-Day Free Trial | -3.51 | -1.36 | -143.37 | 10.14 | -99.80 |
For the Pharmaceutical Retailers subindustry, Walgreens Boots Alliance's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Healthcare Providers & Services industry and Healthcare sector, Walgreens Boots Alliance's ROE % distribution charts can be found below:
* The bar in red indicates where Walgreens Boots Alliance's ROE % falls into.
Walgreens Boots Alliance's annualized ROE % for the fiscal year that ended in Aug. 2024 is calculated as
ROE % | = | Net Income (A: Aug. 2024 ) | / | ( (Total Stockholders Equity (A: Aug. 2023 ) | + | Total Stockholders Equity (A: Aug. 2024 )) | / count ) |
= | -8636 | / | ( (20021 | + | 10446) | / 2 ) | |
= | -8636 | / | 15233.5 | ||||
= | -56.69 % |
Walgreens Boots Alliance's annualized ROE % for the quarter that ended in Aug. 2024 is calculated as
ROE % | = | Net Income (Q: Aug. 2024 ) | / | ( (Total Stockholders Equity (Q: May. 2024 ) | + | Total Stockholders Equity (Q: Aug. 2024 )) | / count ) |
= | -12020 | / | ( (13642 | + | 10446) | / 2 ) | |
= | -12020 | / | 12044 | ||||
= | -99.80 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Aug. 2024) net income data. ROE % is displayed in the 30-year financial page.
Walgreens Boots Alliance (NAS:WBA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
ROE % | (Q: Aug. 2024 ) | ||||
= | Net Income | / | Total Stockholders Equity | ||
= | -12020 | / | 12044 | ||
= | (Net Income / Revenue ) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (-12020 / 150188) | * | (150188 / 82011) | * | (82011 / 12044) |
= | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
= | -8 % | * | 1.8313 | * | 6.8093 |
= | ROA % | * | Equity Multiplier | ||
= | -14.65 % | * | 6.8093 | ||
= | -99.80 % |
With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.
The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:
ROE % | (Q: Aug. 2024 ) | ||||||||
= | Net Income | / | Total Stockholders Equity | ||||||
= | -12020 | / | 12044 | ||||||
= | (Net Income / Pre-Tax Income) | * | (Pre-Tax Income / Operating Income) | * | (Operating Income / Revenue) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (-12020 / -3992) | * | (-3992 / -2780) | * | (-2780 / 150188) | * | (150188 / 82011) | * | (82011 / 12044) |
= | Tax Burden | * | Interest Burden | * | Operating Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 3.011 | * | 1.436 | * | -1.85 % | * | 1.8313 | * | 6.8093 |
= | -99.80 % |
Note: The net income data used here is four times the quarterly (Aug. 2024) net income data. The Revenue data used here is four times the quarterly (Aug. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income. * In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Thank you for viewing the detailed overview of Walgreens Boots Alliance's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.
Inderpal S Bhandari | director | C/O WALGREENS BOOTS ALLIANCE, INC., DEERFIELD IL 60015 |
Manmohan Mahajan | officer: SVP, Global Controller and CAO | C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015 |
Nancy M Schlichting | director | 200 WILMOT ROAD, DEERFIELD IL 60015 |
Timothy C Wentworth | director, officer: Chief Executive Officer | C/O EXPRESS SCRIPTS HOLDING COMPANY, ONE EXPRESS WAY, ST. LOUIS MO 63121 |
Richard P. Gates | officer: SVP, Chief Pharmacy Officer | C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015 |
Neal J. Sample | officer: EVP, Chief Information Officer | 200 VESEY STREET, NEW YORK NY 10285 |
Todd Heckman | officer: Interim Global Controller | C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015 |
Polen Thomas E Jr | director | BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417 |
John Patrick Driscoll | officer: EVP, Pres. U.S. Healthcare | C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015 |
Rosalind G Brewer | director, officer: CEO | C/O MOLSON COORS BREWING COMPANY, 1225 17TH STREET, SUITE 3200, DENVER CO 80202 |
Kevin M. Ban | officer: EVP, Chief Medical Officer | C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015 |
Bryan C Hanson | director | ZIMMER BIOMET HOLDINGS, 345 E. MAIN STREET, WARSAW IN 46580 |
Henry Lee Cooper | officer: EVP, Pres. Walgreens Pharmacy | C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015 |
Tracey D Brown | officer: SVP, Pres., Walgreens Retail | 675 AVENUE OF THE AMERICAS, 6TH FLOOR, NEW YORK NY 10010 |
Steven J Shulman | director | 1564 NE EXPRESSWAY, ATTN: BJ PURCELL, ATLANTA GA 30329 |
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