Analysis of Reportable Segments
Walgreens Boots Alliance Inc. operates in 3 segments: Retail Pharmacy USA; Retail Pharmacy International; and Pharmaceutical Wholesale.
Segment Profit Margin
Walgreens Boots Alliance Inc., profit margin by reportable segment
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Retail Pharmacy USA | 5.03% | 5.91% | 6.42% | 6.39% | 6.30% | 6.37% |
| Retail Pharmacy International | 6.52% | 7.56% | 7.95% | 8.71% | 7.02% | — |
| Pharmaceutical Wholesale | 4.07% | 4.07% | 4.35% | 3.14% | 2.94% | — |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Retail Pharmacy USA | Retail Pharmacy USA segment profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Retail Pharmacy International | Retail Pharmacy International segment profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. | |
| Pharmaceutical Wholesale | Pharmaceutical Wholesale segment profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Segment Profit Margin: Retail Pharmacy USA
Walgreens Boots Alliance Inc.; Retail Pharmacy USA; segment profit margin calculation
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Adjusted operating income | 5,255) | 5,814) | 5,606) | 5,357) | 5,098) | 4,866) |
| Sales | 104,532) | 98,392) | 87,302) | 83,802) | 80,974) | 76,392) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 5.03% | 5.91% | 6.42% | 6.39% | 6.30% | 6.37% |
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).
1 2019 Calculation
Segment profit margin = 100 × Adjusted operating income ÷ Sales
= 100 × 5,255 ÷ 104,532 = 5.03%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Retail Pharmacy USA | Retail Pharmacy USA segment profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Segment Profit Margin: Retail Pharmacy International
Walgreens Boots Alliance Inc.; Retail Pharmacy International; segment profit margin calculation
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Adjusted operating income | 747) | 929) | 939) | 1,155) | 616) | —) |
| Sales | 11,462) | 12,281) | 11,813) | 13,256) | 8,781) | —) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 6.52% | 7.56% | 7.95% | 8.71% | 7.02% | — |
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).
1 2019 Calculation
Segment profit margin = 100 × Adjusted operating income ÷ Sales
= 100 × 747 ÷ 11,462 = 6.52%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Retail Pharmacy International | Retail Pharmacy International segment profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Segment Profit Margin: Pharmaceutical Wholesale
Walgreens Boots Alliance Inc.; Pharmaceutical Wholesale; segment profit margin calculation
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Adjusted operating income | 939) | 936) | 922) | 708) | 450) | —) |
| Sales | 23,053) | 23,006) | 21,188) | 22,571) | 15,327) | —) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 4.07% | 4.07% | 4.35% | 3.14% | 2.94% | — |
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).
1 2019 Calculation
Segment profit margin = 100 × Adjusted operating income ÷ Sales
= 100 × 939 ÷ 23,053 = 4.07%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Pharmaceutical Wholesale | Pharmaceutical Wholesale segment profit margin ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Segment Capital Expenditures to Depreciation
Walgreens Boots Alliance Inc., capital expenditures to depreciation by reportable segment
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Retail Pharmacy USA | 0.91 | 0.85 | 0.79 | 0.69 | 0.78 | 0.84 |
| Retail Pharmacy International | 0.64 | 0.58 | 0.93 | 1.11 | 0.63 | — |
| Pharmaceutical Wholesale | 0.69 | 0.67 | 0.71 | 0.63 | 0.43 | — |
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).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Retail Pharmacy USA | Retail Pharmacy USA segment capital expenditures to depreciation ratio improved from 2017 to 2018 and from 2018 to 2019. |
| Retail Pharmacy International | Retail Pharmacy International segment capital expenditures to depreciation ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. | |
| Pharmaceutical Wholesale | Pharmaceutical Wholesale segment capital expenditures to depreciation ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Segment Capital Expenditures to Depreciation: Retail Pharmacy USA
Walgreens Boots Alliance Inc.; Retail Pharmacy USA; segment capital expenditures to depreciation calculation
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 1,323) | 1,022) | 860) | 777) | 951) | 1,106) |
| Depreciation and amortization | 1,459) | 1,196) | 1,090) | 1,134) | 1,217) | 1,316) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.91 | 0.85 | 0.79 | 0.69 | 0.78 | 0.84 |
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).
1 2019 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 1,323 ÷ 1,459 = 0.91
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Retail Pharmacy USA | Retail Pharmacy USA segment capital expenditures to depreciation ratio improved from 2017 to 2018 and from 2018 to 2019. |
Segment Capital Expenditures to Depreciation: Retail Pharmacy International
Walgreens Boots Alliance Inc.; Retail Pharmacy International; segment capital expenditures to depreciation calculation
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 275) | 241) | 384) | 444) | 249) | —) |
| Depreciation and amortization | 429) | 419) | 414) | 401) | 393) | —) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.64 | 0.58 | 0.93 | 1.11 | 0.63 | — |
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).
1 2019 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 275 ÷ 429 = 0.64
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Retail Pharmacy International | Retail Pharmacy International segment capital expenditures to depreciation ratio deteriorated from 2017 to 2018 but then slightly improved from 2018 to 2019. |
Segment Capital Expenditures to Depreciation: Pharmaceutical Wholesale
Walgreens Boots Alliance Inc.; Pharmaceutical Wholesale; segment capital expenditures to depreciation calculation
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Capital expenditures | 104) | 104) | 107) | 104) | 51) | —) |
| Depreciation and amortization | 150) | 155) | 150) | 166) | 120) | —) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 0.69 | 0.67 | 0.71 | 0.63 | 0.43 | — |
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).
1 2019 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 104 ÷ 150 = 0.69
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Pharmaceutical Wholesale | Pharmaceutical Wholesale segment capital expenditures to depreciation ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level. |
Sales
Walgreens Boots Alliance Inc., sales by reportable segment
US$ in millions
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Retail Pharmacy USA | 104,532) | 98,392) | 87,302) | 83,802) | 80,974) | 76,392) |
| Retail Pharmacy International | 11,462) | 12,281) | 11,813) | 13,256) | 8,781) | —) |
| Pharmaceutical Wholesale | 23,053) | 23,006) | 21,188) | 22,571) | 15,327) | —) |
| Eliminations | (2,181) | (2,142) | (2,089) | (2,278) | (1,638) | —) |
| Total | 136,866) | 131,537) | 118,214) | 117,351) | 103,444) | 76,392) |
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).
Adjusted operating income
Walgreens Boots Alliance Inc., adjusted operating income by reportable segment
US$ in millions
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Retail Pharmacy USA | 5,255) | 5,814) | 5,606) | 5,357) | 5,098) | 4,866) |
| Retail Pharmacy International | 747) | 929) | 939) | 1,155) | 616) | —) |
| Pharmaceutical Wholesale | 939) | 936) | 922) | 708) | 450) | —) |
| Eliminations | 1) | —) | —) | (12) | (7) | —) |
| Total | 6,942) | 7,679) | 7,467) | 7,208) | 6,157) | 4,866) |
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).
Depreciation and amortization
Walgreens Boots Alliance Inc., depreciation and amortization by reportable segment
US$ in millions
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Retail Pharmacy USA | 1,459) | 1,196) | 1,090) | 1,134) | 1,217) | 1,316) |
| Retail Pharmacy International | 429) | 419) | 414) | 401) | 393) | —) |
| Pharmaceutical Wholesale | 150) | 155) | 150) | 166) | 120) | —) |
| Eliminations | —) | —) | —) | 17) | 12) | —) |
| Total | 2,038) | 1,770) | 1,654) | 1,718) | 1,742) | 1,316) |
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).
Capital expenditures
Walgreens Boots Alliance Inc., capital expenditures by reportable segment
US$ in millions
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | |
|---|---|---|---|---|---|---|
| Retail Pharmacy USA | 1,323) | 1,022) | 860) | 777) | 951) | 1,106) |
| Retail Pharmacy International | 275) | 241) | 384) | 444) | 249) | —) |
| Pharmaceutical Wholesale | 104) | 104) | 107) | 104) | 51) | —) |
| Total | 1,702) | 1,367) | 1,351) | 1,325) | 1,251) | 1,106) |
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).