Operating Profit Margin
since 2005
Calculation
Walgreens Boots Alliance Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Sales1 | |
|---|---|---|---|---|---|---|---|
| Aug 31, 2019 | 3.65% | = | 100 | × | 4,998) | ÷ | 136,866) |
| Aug 31, 2018 | 4.88% | = | 100 | × | 6,414) | ÷ | 131,537) |
| Aug 31, 2017 | 4.70% | = | 100 | × | 5,557) | ÷ | 118,214) |
| Aug 31, 2016 | 5.11% | = | 100 | × | 6,001) | ÷ | 117,351) |
| Aug 31, 2015 | 4.51% | = | 100 | × | 4,668) | ÷ | 103,444) |
| Aug 31, 2014 | 5.49% | = | 100 | × | 4,194) | ÷ | 76,392) |
| Aug 31, 2013 | 5.46% | = | 100 | × | 3,940) | ÷ | 72,217) |
| Aug 31, 2012 | 4.84% | = | 100 | × | 3,464) | ÷ | 71,633) |
| Aug 31, 2011 | 6.05% | = | 100 | × | 4,365) | ÷ | 72,184) |
| Aug 31, 2010 | 5.13% | = | 100 | × | 3,458) | ÷ | 67,420) |
| Aug 31, 2009 | 5.13% | = | 100 | × | 3,247) | ÷ | 63,335) |
| Aug 31, 2008 | 5.83% | = | 100 | × | 3,441) | ÷ | 59,034) |
| Aug 31, 2007 | 5.86% | = | 100 | × | 3,151) | ÷ | 53,762) |
| Aug 31, 2006 | 5.70% | = | 100 | × | 2,702) | ÷ | 47,409) |
| Aug 31, 2005 | 5.74% | = | 100 | × | 2,424) | ÷ | 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 financial performance from 2005 to 2019 is characterized by significant top-line expansion coupled with a gradual erosion of operating efficiency.
- Revenue and Operating Income Trends
- Sales experienced consistent growth over the analyzed period, increasing from US$ 42,202 million in 2005 to US$ 136,866 million by 2019. A notable acceleration in revenue growth occurred between 2014 and 2015, where sales increased by approximately 35% in a single year. Operating income generally followed an upward trajectory, peaking at US$ 6,414 million in 2018 before contracting to US$ 4,998 million in 2019.
- Operating Profit Margin Evolution
- The operating profit margin remained relatively stable between 2005 and 2011, fluctuating within a narrow range of 5.13% to 6.05%. A period of increased volatility and a general downward trend emerged after 2011, with the margin frequently dropping below the 5% threshold. The most pronounced compression occurred toward the end of the period, with the margin falling to a period low of 3.65% in 2019.
- Efficiency and Scaling Analysis
- While total sales more than tripled between 2005 and 2019, the operating profit margin did not scale proportionally. The divergence between the growth in sales and the decline in operating margin suggests that operational expenses increased at a faster rate than revenue, particularly in the final two years of the period, leading to a reduction in overall profitability per dollar of sales.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Walgreens Boots Alliance Inc., operating profit margin, long-term trends, comparison to competitors
| Walgreens Boots Alliance Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Aug 31, 2019 | 3.65% | 3.17% | 5.45% | 4.30% |
| Aug 31, 2018 | 4.88% | 3.24% | 6.00% | 4.12% |
| Aug 31, 2017 | 4.70% | 3.26% | 7.15% | 4.73% |
| Aug 31, 2016 | 5.11% | 3.16% | 7.49% | 5.04% |
| Aug 31, 2015 | 4.51% | 3.19% | 6.25% | 5.63% |
| Aug 31, 2014 | 5.49% | 2.92% | 5.83% | 5.68% |
| Aug 31, 2013 | 5.46% | 2.97% | 7.33% | 5.96% |
| Aug 31, 2012 | 4.84% | 2.84% | 7.62% | 5.98% |
| Aug 31, 2011 | 6.05% | 2.80% | 7.79% | 6.10% |
| Aug 31, 2010 | 5.13% | 2.72% | 7.15% | 5.91% |
| Aug 31, 2009 | 5.13% | 2.54% | 6.78% | 5.68% |
| Aug 31, 2008 | 5.83% | 2.77% | 8.32% | 5.87% |
| Aug 31, 2007 | 5.86% | 2.55% | 8.52% | 5.94% |
| Aug 31, 2006 | 5.70% | 2.76% | 8.22% | 5.93% |
| Aug 31, 2005 | 5.74% | 2.84% | 7.69% | 5.99% |
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).