Walgreens Boots Alliance (BUE:WBA) ROCE %: 0.49% (As of May. 2025)


What is Walgreens Boots Alliance ROCE %?

Walgreens Boots Alliance BUE:WBA 15 ROCE % is 0.49% as of May. 2025. GuruFocus rates BUE:WBA with a GF Score™ of 15/100. The stock has 7 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Walgreens Boots Alliance's annualized ROCE % for the quarter that ended in May. 2025 was 0.49%.

Walgreens Boots Alliance  (BUE:WBA) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Walgreens Boots Alliance ROCE % Related Terms

Walgreens Boots Alliance ROCE % Historical Data

* Premium members only.

The historical data trend for Walgreens Boots Alliance's ROCE % 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 ROCE % Chart

Walgreens Boots Alliance Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.48 4.86 8.77 -9.27 -36.42

Walgreens Boots Alliance Quarterly Data
Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.57 -6.39 -3.26 -36.09 0.49

Walgreens Boots Alliance ROCE % Calculation

Walgreens Boots Alliance's annualized ROCE % for the fiscal year that ended in Aug. 2024 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Aug. 2024 )  (A: Aug. 2023 )(A: Aug. 2024 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Aug. 2024 )  (A: Aug. 2023 )(A: Aug. 2024 )
=-12802883.682/( ( (26669328.043 - 6771660.011) + (75526482.127 - 25120195.377) )/ 2 )
=-12802883.682/( (19897668.032+50406286.75)/ 2 )
=-12802883.682/35151977.391
=-36.42 %

Walgreens Boots Alliance's ROCE % of for the quarter that ended in May. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: May. 2025 )  (Q: Feb. 2025 )(Q: May. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: May. 2025 )  (Q: Feb. 2025 )(Q: May. 2025 )
=241457.208/( ( (74567545.722 - 28232570.967) + (82149897.108 - 30724246.162) )/ 2 )
=241457.208/( ( 46334974.755 + 51425650.946 )/ 2 )
=241457.208/48880312.8505
=0.49 %

(1) 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 0.49% mean?
Walgreens Boots Alliance (BUE:WBA) has a ROCE % of 0.49% as of May. 2025.
Is Walgreens Boots Alliance's ROCE % too high?
Walgreens Boots Alliance's current ROCE % is 0.49%. The Healthcare Providers & Services industry median ROCE % is 6.41. Walgreens Boots Alliance's value of 0.49% is 92.4% 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 ROCE % compare to WGRX and PETS?
Walgreens Boots Alliance's ROCE % of 0.49% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROCE % is 6.41. Walgreens Boots Alliance's value of 0.49% is 92.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Healthcare Providers & Services company?
The median ROCE % among Healthcare Providers & Services companies is 6.41, based on 648 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Walgreens Boots Alliance's current ROCE % of 0.49% is 92.4% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Healthcare Providers & Services industry, the median ROCE % is 6.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walgreens Boots Alliance's current ROCE % is 0.49%. 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 ROCE % of 0.49%. The current ROCE % is 0.49% and 92.4% below the Healthcare Providers & Services industry median of 6.41. 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 ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Walgreens Boots Alliance (BUE:WBA), the current ROCE % is 0.49% 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 Business Description

Address 108 Wilmot Road, Deerfield, IL, USA, 60015
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.