Stock Analysis on Net
Stock Analysis on Net

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

This company has been moved to the archive! The financial data has not been updated since July 9, 2020.

Analysis of Investments

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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Walgreens Boots Alliance Inc., adjustment to net earnings attributable to Walgreens Boots Alliance, Inc.

US$ in millions

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12 months ended: Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Net earnings attributable to Walgreens Boots Alliance, Inc. (as reported) 3,982 5,024 4,078 4,173 4,220 1,932
Add: Unrecognized gain (loss) on available-for-sale investments — — (2) (257) 152 106
Net earnings attributable to Walgreens Boots Alliance, Inc. (adjusted) 3,982 5,024 4,076 3,916 4,372 2,038

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Walgreens Boots Alliance Inc., adjusted profitability ratios

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Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
Net Profit Margin
Reported net profit margin 2.91% 3.82% 3.45% 3.56% 4.08% 2.53%
Adjusted net profit margin 2.91% 3.82% 3.45% 3.34% 4.23% 2.67%
Return on Equity (ROE)
Reported ROE 16.94% 19.32% 14.85% 13.97% 13.67% 9.44%
Adjusted ROE 16.94% 19.32% 14.84% 13.11% 14.17% 9.96%
Return on Assets (ROA)
Reported ROA 5.89% 7.37% 6.18% 5.74% 6.14% 5.20%
Adjusted ROA 5.89% 7.37% 6.17% 5.39% 6.36% 5.48%

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Walgreens Boots Alliance Inc. adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Walgreens Boots Alliance Inc. adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Walgreens Boots Alliance Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Walgreens Boots Alliance Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

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Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Walgreens Boots Alliance, Inc. 3,982 5,024 4,078 4,173 4,220 1,932
Sales 136,866 131,537 118,214 117,351 103,444 76,392
Profitability Ratio
Net profit margin1 2.91% 3.82% 3.45% 3.56% 4.08% 2.53%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. 3,982 5,024 4,076 3,916 4,372 2,038
Sales 136,866 131,537 118,214 117,351 103,444 76,392
Profitability Ratio
Adjusted net profit margin2 2.91% 3.82% 3.45% 3.34% 4.23% 2.67%

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

2019 Calculations

1 Net profit margin = 100 × Net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Sales
= 100 × 3,982 ÷ 136,866 = 2.91%

2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Sales
= 100 × 3,982 ÷ 136,866 = 2.91%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Walgreens Boots Alliance Inc. adjusted net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Adjusted Return on Equity (ROE)

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Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Walgreens Boots Alliance, Inc. 3,982 5,024 4,078 4,173 4,220 1,932
Total Walgreens Boots Alliance, Inc. shareholders’ equity 23,512 26,007 27,466 29,880 30,861 20,457
Profitability Ratio
ROE1 16.94% 19.32% 14.85% 13.97% 13.67% 9.44%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. 3,982 5,024 4,076 3,916 4,372 2,038
Total Walgreens Boots Alliance, Inc. shareholders’ equity 23,512 26,007 27,466 29,880 30,861 20,457
Profitability Ratio
Adjusted ROE2 16.94% 19.32% 14.84% 13.11% 14.17% 9.96%

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

2019 Calculations

1 ROE = 100 × Net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Total Walgreens Boots Alliance, Inc. shareholders’ equity
= 100 × 3,982 ÷ 23,512 = 16.94%

2 Adjusted ROE = 100 × Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Total Walgreens Boots Alliance, Inc. shareholders’ equity
= 100 × 3,982 ÷ 23,512 = 16.94%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Walgreens Boots Alliance Inc. adjusted ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Adjusted Return on Assets (ROA)

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Aug 31, 2019 Aug 31, 2018 Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014
As Reported
Selected Financial Data (US$ in millions)
Net earnings attributable to Walgreens Boots Alliance, Inc. 3,982 5,024 4,078 4,173 4,220 1,932
Total assets 67,598 68,124 66,009 72,688 68,782 37,182
Profitability Ratio
ROA1 5.89% 7.37% 6.18% 5.74% 6.14% 5.20%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. 3,982 5,024 4,076 3,916 4,372 2,038
Total assets 67,598 68,124 66,009 72,688 68,782 37,182
Profitability Ratio
Adjusted ROA2 5.89% 7.37% 6.17% 5.39% 6.36% 5.48%

Based on: 10-K (reporting date: 2019-08-31), 10-K (reporting date: 2018-08-31), 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31).

2019 Calculations

1 ROA = 100 × Net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Total assets
= 100 × 3,982 ÷ 67,598 = 5.89%

2 Adjusted ROA = 100 × Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Total assets
= 100 × 3,982 ÷ 67,598 = 5.89%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Walgreens Boots Alliance Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.