Walgreens Boots Alliance Inc. (WBA)


Income Statement

Low level of difficulty

The income statement presents information on the financial results of a company’s business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Walgreens Boots Alliance Inc., consolidated income statement

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
Sales 136,866  131,537  118,214  117,351  103,444  76,392 
Cost of sales (106,790) (100,745) (89,052) (87,477) (76,520) (54,823)
Gross profit 30,076  30,792  29,162  29,874  26,924  21,569 
Selling, general and administrative expenses (25,242) (24,569) (23,740) (23,910) (22,571) (17,992)
Equity earnings in AmerisourceBergen 164  191  135  37  —  — 
Equity earnings in Alliance Boots —  —  —  —  315  617 
Operating income 4,998  6,414  5,557  6,001  4,668  4,194 
Gain on previously held equity interest —  —  —  —  563  — 
Other income (expense) 233  177  (11) (261) 685  (481)
Earnings before interest and income tax provision 5,231  6,591  5,546  5,740  5,916  3,713 
Interest expense, net (704) (616) (693) (596) (605) (156)
Earnings before income tax provision 4,527  5,975  4,853  5,144  5,311  3,557 
Income tax provision (588) (998) (760) (997) (1,056) (1,526)
Post tax earnings from other equity method investments 23  54  44  24  — 
Net earnings 3,962  5,031  4,101  4,191  4,279  2,031 
Net (earnings) loss attributable to noncontrolling interests 20  (7) (23) (18) (59) (99)
Net earnings attributable to Walgreens Boots Alliance, Inc. 3,982  5,024  4,078  4,173  4,220  1,932 

Based on: 10-K (filing date: 2019-10-28), 10-K (filing date: 2018-10-11), 10-K (filing date: 2017-10-25), 10-K (filing date: 2016-10-20), 10-K (filing date: 2015-10-28), 10-K (filing date: 2014-10-20).

Income statement item Description The company
Sales Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise. Walgreens Boots Alliance Inc.’s sales increased from 2017 to 2018 and from 2018 to 2019.
Operating income The net result for the period of deducting operating expenses from operating revenues. Walgreens Boots Alliance Inc.’s operating income increased from 2017 to 2018 but then declined significantly from 2018 to 2019.
Earnings before income tax provision Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest. Walgreens Boots Alliance Inc.’s earnings before income tax provision increased from 2017 to 2018 but then declined significantly from 2018 to 2019.
Net earnings attributable to Walgreens Boots Alliance, Inc. The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Walgreens Boots Alliance Inc.’s net earnings attributable to Walgreens Boots Alliance, Inc. increased from 2017 to 2018 but then declined significantly from 2018 to 2019.