Stock Analysis on Net
Stock Analysis on Net

Walgreens Boots Alliance Inc. (NASDAQ:WBA)

$22.49

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

Operating Profit Margin
since 2005

Microsoft Excel

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Calculation

Walgreens Boots Alliance Inc., operating profit margin, long-term trends, calculation

Microsoft Excel
Operating profit margin = 100 × Operating income1 ÷ Sales1
Aug 31, 2019 = 100 × ÷
Aug 31, 2018 = 100 × ÷
Aug 31, 2017 = 100 × ÷
Aug 31, 2016 = 100 × ÷
Aug 31, 2015 = 100 × ÷
Aug 31, 2014 = 100 × ÷
Aug 31, 2013 = 100 × ÷
Aug 31, 2012 = 100 × ÷
Aug 31, 2011 = 100 × ÷
Aug 31, 2010 = 100 × ÷
Aug 31, 2009 = 100 × ÷
Aug 31, 2008 = 100 × ÷
Aug 31, 2007 = 100 × ÷
Aug 31, 2006 = 100 × ÷
Aug 31, 2005 = 100 × ÷

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

Microsoft Excel
Walgreens Boots Alliance Inc. Costco Wholesale Corp. Target Corp. Walmart Inc.
Aug 31, 2019
Aug 31, 2018
Aug 31, 2017
Aug 31, 2016
Aug 31, 2015
Aug 31, 2014
Aug 31, 2013
Aug 31, 2012
Aug 31, 2011
Aug 31, 2010
Aug 31, 2009
Aug 31, 2008
Aug 31, 2007
Aug 31, 2006
Aug 31, 2005

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).