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Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Walgreens Boots Alliance's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2025 was 0.77%.
The historical rank and industry rank for Walgreens Boots Alliance's ROC (Joel Greenblatt) % or its related term are showing as below:
BUE:WBA'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -43.36 Med: 24.82 Max: 47.84
Current: -18.31
During the past 13 years, Walgreens Boots Alliance's highest ROC (Joel Greenblatt) % was 47.84%. The lowest was -43.36%. And the median was 24.82%.
BUE:WBA's ROC (Joel Greenblatt) % is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 12.46
vs BUE:WBA: -18.31
Walgreens Boots Alliance's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Walgreens Boots Alliance ROC (Joel Greenblatt) % Related Terms
Walgreens Boots Alliance ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Walgreens Boots Alliance's ROC (Joel Greenblatt) % 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.
BUE:WBA vs WGRX, PETS, BHIC: ROC (Joel Greenblatt) % Comparison
For the Pharmaceutical Retailers subindustry, Walgreens Boots Alliance's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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.
Walgreens Boots Alliance ROC (Joel Greenblatt) % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Walgreens Boots Alliance's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Walgreens Boots Alliance's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (May. 2025) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 0.77% mean?
Walgreens Boots Alliance (BUE:WBA) has a ROC (Joel Greenblatt) % of 0.77% as of May. 2025. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Walgreens Boots Alliance and its competitors. This is 97% below median its historical median of 24.82.
Is Walgreens Boots Alliance's ROC (Joel Greenblatt) % too high?
Walgreens Boots Alliance's current ROC (Joel Greenblatt) % of 0.77% is 97% below median its 10-year median of 24.82. The Healthcare Providers & Services industry median ROC (Joel Greenblatt) % is 12.46. Walgreens Boots Alliance's value of 0.77% is 93.8% below this industry median. Overall, Walgreens Boots Alliance has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Walgreens Boots Alliance's ROC (Joel Greenblatt) % compare to WGRX and PETS?
Walgreens Boots Alliance's ROC (Joel Greenblatt) % of 0.77% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROC (Joel Greenblatt) % is 12.46. Walgreens Boots Alliance's value of 0.77% is 93.8% below this benchmark. While the company's 10-year median is 24.82 vs. the industry median of 12.46, Walgreens Boots Alliance has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC (Joel Greenblatt) % for a Healthcare Providers & Services company?
The median ROC (Joel Greenblatt) % among Healthcare Providers & Services companies is 12.46, based on 669 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Walgreens Boots Alliance's current ROC (Joel Greenblatt) % of 0.77% is 93.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Walgreens Boots Alliance and its competitors. For the Healthcare Providers & Services industry, the median ROC (Joel Greenblatt) % is 12.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walgreens Boots Alliance's current ROC (Joel Greenblatt) % is 0.77%, which is 97% below median its own 10-year median of 24.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walgreens Boots Alliance stock overvalued right now?
Walgreens Boots Alliance (BUE:WBA) has a current ROC (Joel Greenblatt) % of 0.77%. The current ROC (Joel Greenblatt) % is 0.77%, which is 97% below median its 10-year median of 24.82 and 93.8% below the Healthcare Providers & Services industry median of 12.46. Walgreens Boots Alliance's overall GF Score™ is 15/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Walgreens Boots Alliance (BUE:WBA), the current ROC (Joel Greenblatt) % is 0.77% as of May. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Walgreens Boots Alliance is one of the largest retail pharmacy chains in the US, with over 8,000 locations. Nearly three quarters of Americans live within five miles of a Walgreens location. Roughly two thirds of revenue is generated from prescription drug sales; Walgreens makes up 20% of total prescription revenue in the US. Walgreens also generates sales from retail products (general wellness consumables and its own branded merchandise), European drug wholesale, and healthcare. With more locations incorporating additional services like Health Corner and Village Medical, Walgreens creates an omnichannel experience for patients and positions itself as a one-stop healthcare provider.
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