Net Profit Margin
since 2005
Calculation
Walgreens Boots Alliance Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net earnings attributable to Walgreens Boots Alliance, Inc.1 | ÷ | Sales1 | |
|---|---|---|---|---|---|---|---|
| Aug 31, 2019 | 2.91% | = | 100 | × | 3,982) | ÷ | 136,866) |
| Aug 31, 2018 | 3.82% | = | 100 | × | 5,024) | ÷ | 131,537) |
| Aug 31, 2017 | 3.45% | = | 100 | × | 4,078) | ÷ | 118,214) |
| Aug 31, 2016 | 3.56% | = | 100 | × | 4,173) | ÷ | 117,351) |
| Aug 31, 2015 | 4.08% | = | 100 | × | 4,220) | ÷ | 103,444) |
| Aug 31, 2014 | 2.53% | = | 100 | × | 1,932) | ÷ | 76,392) |
| Aug 31, 2013 | 3.39% | = | 100 | × | 2,450) | ÷ | 72,217) |
| Aug 31, 2012 | 2.97% | = | 100 | × | 2,127) | ÷ | 71,633) |
| Aug 31, 2011 | 3.76% | = | 100 | × | 2,714) | ÷ | 72,184) |
| Aug 31, 2010 | 3.10% | = | 100 | × | 2,091) | ÷ | 67,420) |
| Aug 31, 2009 | 3.17% | = | 100 | × | 2,006) | ÷ | 63,335) |
| Aug 31, 2008 | 3.65% | = | 100 | × | 2,157) | ÷ | 59,034) |
| Aug 31, 2007 | 3.80% | = | 100 | × | 2,041) | ÷ | 53,762) |
| Aug 31, 2006 | 3.69% | = | 100 | × | 1,751) | ÷ | 47,409) |
| Aug 31, 2005 | 3.70% | = | 100 | × | 1,560) | ÷ | 42,202) |
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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
1 US$ in millions
The net profit margin exhibited a period of relative stability followed by significant volatility and a general long-term contraction. Between 2005 and 2011, the margin remained largely consistent, fluctuating within a narrow band between 3.10% and 3.80%. However, a subsequent decline occurred leading up to 2014, where the margin reached a period low of 2.53%.
- Revenue Scale and Margin Correlation
- A substantial increase in sales is observed starting in 2015, with revenue jumping from 76,392 million US$ to 103,444 million US$. This expansion coincided with a sharp increase in net earnings, which more than doubled from 1,932 million US$ to 4,220 million US$, resulting in the peak net profit margin of 4.08% for the entire analyzed period.
- Profitability Trends post-2015
- Despite the scale achieved after 2015, the net profit margin failed to maintain its peak. From 2016 to 2018, the margin fluctuated between 3.45% and 3.82%. A notable contraction occurred by 2019, where the margin dropped to 2.91% despite sales reaching their highest point of 136,866 million US$.
- Long-term Margin Erosion
- An analysis of the full timeframe reveals that while absolute net earnings grew from 1,560 million US$ in 2005 to 3,982 million US$ in 2019, the efficiency of converting sales into profit decreased. The net profit margin ended the period at 2.91%, representing a decline from the 3.70% observed in 2005.
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Comparison to Competitors
Walgreens Boots Alliance Inc., net profit margin, long-term trends, comparison to competitors
| Walgreens Boots Alliance Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Aug 31, 2019 | 2.91% | 2.45% | 3.90% | 1.31% |
| Aug 31, 2018 | 3.82% | 2.26% | 4.08% | 1.99% |
| Aug 31, 2017 | 3.45% | 2.12% | 3.94% | 2.83% |
| Aug 31, 2016 | 3.56% | 2.02% | 4.56% | 3.07% |
| Aug 31, 2015 | 4.08% | 2.09% | -2.25% | 3.39% |
| Aug 31, 2014 | 2.53% | 1.87% | 2.72% | 3.39% |
| Aug 31, 2013 | 3.39% | 1.98% | 4.09% | 3.65% |
| Aug 31, 2012 | 2.97% | 1.76% | 4.19% | 3.54% |
| Aug 31, 2011 | 3.76% | 1.68% | 4.33% | 3.91% |
| Aug 31, 2010 | 3.10% | 1.71% | 3.81% | 3.54% |
| Aug 31, 2009 | 3.17% | 1.55% | 3.41% | 3.34% |
| Aug 31, 2008 | 3.65% | 1.81% | 4.50% | 3.40% |
| Aug 31, 2007 | 3.80% | 1.72% | 4.68% | 3.27% |
| Aug 31, 2006 | 3.69% | 1.87% | 4.58% | 3.59% |
| Aug 31, 2005 | 3.70% | 2.05% | 6.83% | 3.60% |
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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Sector (Consumer Staples Distribution & Retail)
Walgreens Boots Alliance Inc., net profit margin, long-term trends, comparison to sector (consumer staples distribution & retail)
| Walgreens Boots Alliance Inc. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Aug 31, 2019 | 2.91% | 1.80% |
| Aug 31, 2018 | 3.82% | 2.26% |
| Aug 31, 2017 | 3.45% | 2.82% |
| Aug 31, 2016 | 3.56% | 3.05% |
| Aug 31, 2015 | 4.08% | 2.56% |
| Aug 31, 2014 | 2.53% | 3.06% |
| Aug 31, 2013 | 3.39% | 3.43% |
| Aug 31, 2012 | 2.97% | 3.33% |
| Aug 31, 2011 | 3.76% | 3.62% |
| Aug 31, 2010 | 3.10% | 3.32% |
| Aug 31, 2009 | 3.17% | 3.12% |
| Aug 31, 2008 | 3.65% | 3.31% |
| Aug 31, 2007 | 3.80% | 3.24% |
| Aug 31, 2006 | 3.69% | 3.48% |
| Aug 31, 2005 | 3.70% | 3.78% |
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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Industry (Consumer Staples)
Walgreens Boots Alliance Inc., net profit margin, long-term trends, comparison to industry (consumer staples)
| Walgreens Boots Alliance Inc. | Consumer Staples | |
|---|---|---|
| Aug 31, 2019 | 2.91% | 4.62% |
| Aug 31, 2018 | 3.82% | 6.05% |
| Aug 31, 2017 | 3.45% | 5.52% |
| Aug 31, 2016 | 3.56% | 5.88% |
| Aug 31, 2015 | 4.08% | 5.62% |
| Aug 31, 2014 | 2.53% | 6.00% |
| Aug 31, 2013 | 3.39% | 6.75% |
| Aug 31, 2012 | 2.97% | 6.65% |
| Aug 31, 2011 | 3.76% | 6.99% |
| Aug 31, 2010 | 3.10% | 7.59% |
| Aug 31, 2009 | 3.17% | 6.93% |
| Aug 31, 2008 | 3.65% | 6.75% |
| Aug 31, 2007 | 3.80% | 6.11% |
| Aug 31, 2006 | 3.69% | 6.35% |
| Aug 31, 2005 | 3.70% | 6.29% |
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), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).