ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Walgreens Boots Alliance's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2025 was 0.10%.
As of today (2026-06-28), Walgreens Boots Alliance's WACC % is 3.76%. Walgreens Boots Alliance's ROIC % is -4.56% (calculated using TTM income statement data).
Walgreens Boots Alliance earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Walgreens Boots Alliance's WACC % is 3.76%. Walgreens Boots Alliance's ROIC % is -4.56% (calculated using TTM income statement data).
Walgreens Boots Alliance earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
* 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.
For the Pharmaceutical Retailers subindustry, Walgreens Boots Alliance's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Walgreens Boots Alliance's ROIC % distribution charts can be found below:
* The bar in red indicates where Walgreens Boots Alliance's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (May. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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 (BUE:WBA) has a ROIC % of 0.10% as of May. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Walgreens Boots Alliance and its competitors.
Is Walgreens Boots Alliance's ROIC % too high?
Walgreens Boots Alliance's current ROIC % is 0.10%. The Healthcare Providers & Services industry median ROIC % is 3.08. Walgreens Boots Alliance's value of 0.10% is 96.7% 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 ROIC % compare to WGRX and PETS?
Walgreens Boots Alliance's ROIC % of 0.10% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.08. Walgreens Boots Alliance's value of 0.10% is 96.7% 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 ROIC % for a Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.08, based on 668 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Walgreens Boots Alliance's current ROIC % of 0.10% is 96.7% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Walgreens Boots Alliance and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walgreens Boots Alliance's current ROIC % is 0.10%. 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 ROIC % of 0.10%. The current ROIC % is 0.10% and 96.7% below the Healthcare Providers & Services industry median of 3.08. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Walgreens Boots Alliance (BUE:WBA), the current ROIC % is 0.10% 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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BUE:WBA has been successfully added to your 