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
- Sales Trend
- Sales demonstrated a consistent upward trajectory from 2005 through 2019, rising from approximately $42.2 billion to $136.9 billion. This represents a more than threefold increase over the 15-year period, indicating substantial growth in revenue generation. There are no significant declines or periods of stagnation, although growth appears steadier and somewhat slower after 2015.
- Operating Income Trend
- Operating income increased from $2.4 billion in 2005 to a peak of $6.4 billion in 2018, with some fluctuations along the way. Notably, there was a pronounced increase between 2015 and 2016, from $4.7 billion to $6.0 billion. However, in 2019, operating income declined to approximately $5.0 billion, indicating a potential reduction in operational profitability despite growing sales.
- Operating Profit Margin Analysis
- The operating profit margin showed variability over the years, generally ranging between 3.65% and 6.05%. The highest margin was recorded in 2011 at 6.05%. There is a declining trend in margin percentage in the latter years, falling to 3.65% in 2019, the lowest in the period examined. This suggests that despite growing sales, profitability per dollar of sales has weakened.
- Relationship Between Sales and Operating Income
- While sales steadily increased, operating income did not consistently follow the same trend, especially in later years. The divergence between rising sales and a declining operating margin towards the end of the period could indicate increased costs, pricing pressure, or changes in business operations affecting profitability. The sharp growth in operating income around 2015-2017 improved margins temporarily but was not sustained.
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).