Walgreens Boots Alliance (NASDAQ:WBA) earned $1.04 billion in the third quarter, up 24.64 percent from the previous quarter. Walgreens Boots Alliance also reported sales of $34.03 billion, up 3.82 percent from the previous quarter. Walgreens Boots Alliance made $832.00 million in the second quarter, with total sales of $32.78 billion.
What Is ROCE and How Does It Work?
Walgreens Boots Alliance’s Return on Capital Invested, a measure of yearly pre-tax profit relative to capital employed, has shifted as earnings and sales have changed. In general, a greater ROCE indicates that a company is growing successfully and that future earnings per share will be higher. Walgreens Boots Alliance had a ROCE of 0.05 percent in the third quarter.
It’s vital to remember that ROCE assesses historical performance and isn’t intended to be used as a forecasting tool. It’s a strong indicator of a company’s previous performance, but various factors could have an immediate impact on earnings and sales.
Return on Capital Employed (ROCE) is a key indicator of efficiency and a useful metric for comparing businesses in the same industry. A high ROCE shows that a company is making profits that can be reinvested into new capital, resulting in higher returns and EPS growth for shareholders.
In the case of Walgreens Boots Alliance, the favorable ROCE ratio will be a factor to consider when making long-term financial decisions.
Insights into Q3 Earnings
Walgreens Boots Alliance reported $1.38 earnings per share in the third quarter, beating consensus expectations of $1.17./n
