Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Walgreens Boots Alliance Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Walgreens Boots Alliance Inc. gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Walgreens Boots Alliance Inc. operating profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Walgreens Boots Alliance Inc. net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Walgreens Boots Alliance Inc. ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Walgreens Boots Alliance Inc. ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Gross Profit Margin
Walgreens Boots Alliance Inc., gross profit margin calculation, comparison to benchmarks
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 30,076) | 30,792) | 29,162) | 29,874) | 26,924) | 21,569) | |
| Sales | 136,866) | 131,537) | 118,214) | 117,351) | 103,444) | 76,392) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 21.97% | 23.41% | 24.67% | 25.46% | 26.03% | 28.23% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 11.02% | — | — | — | — | — | |
| Dollar General Corp. | 30.45% | — | — | — | — | — | |
| Target Corp. | 28.39% | — | — | — | — | — | |
| Walmart Inc. | 24.50% | — | — | — | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Sales
= 100 × 30,076 ÷ 136,866 = 21.97%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Walgreens Boots Alliance Inc. gross profit margin ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
Operating Profit Margin
Walgreens Boots Alliance Inc., operating profit margin calculation, comparison to benchmarks
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 4,998) | 6,414) | 5,557) | 6,001) | 4,668) | 4,194) | |
| Sales | 136,866) | 131,537) | 118,214) | 117,351) | 103,444) | 76,392) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 3.65% | 4.88% | 4.70% | 5.11% | 4.51% | 5.49% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 3.17% | — | — | — | — | — | |
| Dollar General Corp. | 8.26% | — | — | — | — | — | |
| Target Corp. | 5.52% | — | — | — | — | — | |
| Walmart Inc. | 4.30% | — | — | — | — | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | 4.33% | — | — | — | — | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Staples | 8.07% | — | — | — | — | — | |
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
Operating profit margin = 100 × Operating income ÷ Sales
= 100 × 4,998 ÷ 136,866 = 3.65%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Walgreens Boots Alliance Inc. operating profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Net Profit Margin
Walgreens Boots Alliance Inc., net profit margin calculation, comparison to benchmarks
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings attributable to Walgreens Boots Alliance, Inc. | 3,982) | 5,024) | 4,078) | 4,173) | 4,220) | 1,932) | |
| Sales | 136,866) | 131,537) | 118,214) | 117,351) | 103,444) | 76,392) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 2.91% | 3.82% | 3.45% | 3.56% | 4.08% | 2.53% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 2.45% | — | — | — | — | — | |
| Dollar General Corp. | 6.20% | — | — | — | — | — | |
| Target Corp. | 3.95% | — | — | — | — | — | |
| Walmart Inc. | 1.31% | — | — | — | — | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | 1.96% | — | — | — | — | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Staples | 4.14% | — | — | — | — | — | |
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
Net profit margin = 100 × Net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Sales
= 100 × 3,982 ÷ 136,866 = 2.91%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Walgreens Boots Alliance Inc. net profit margin ratio improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |
Return on Equity (ROE)
Walgreens Boots Alliance Inc., ROE calculation, comparison to benchmarks
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings attributable to Walgreens Boots Alliance, Inc. | 3,982) | 5,024) | 4,078) | 4,173) | 4,220) | 1,932) | |
| Total Walgreens Boots Alliance, Inc. shareholders’ equity | 23,512) | 26,007) | 27,466) | 29,880) | 30,861) | 20,457) | |
| Profitability Ratio | |||||||
| ROE1 | 16.94% | 19.32% | 14.85% | 13.97% | 13.67% | 9.44% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Costco Wholesale Corp. | 24.00% | — | — | — | — | — | |
| Dollar General Corp. | 24.77% | — | — | — | — | — | |
| Target Corp. | 26.00% | — | — | — | — | — | |
| Walmart Inc. | 9.20% | — | — | — | — | — | |
| ROE, Sector | |||||||
| Consumer Staples Distribution & Retail | 14.09% | — | — | — | — | — | |
| ROE, Industry | |||||||
| Consumer Staples | 22.58% | — | — | — | — | — | |
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
ROE = 100 × Net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Total Walgreens Boots Alliance, Inc. shareholders’ equity
= 100 × 3,982 ÷ 23,512 = 16.94%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Walgreens Boots Alliance Inc. ROE improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level. |
Return on Assets (ROA)
Walgreens Boots Alliance Inc., ROA calculation, comparison to benchmarks
| Aug 31, 2019 | Aug 31, 2018 | Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings attributable to Walgreens Boots Alliance, Inc. | 3,982) | 5,024) | 4,078) | 4,173) | 4,220) | 1,932) | |
| Total assets | 67,598) | 68,124) | 66,009) | 72,688) | 68,782) | 37,182) | |
| Profitability Ratio | |||||||
| ROA1 | 5.89% | 7.37% | 6.18% | 5.74% | 6.14% | 5.20% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Costco Wholesale Corp. | 8.06% | — | — | — | — | — | |
| Dollar General Corp. | 12.04% | — | — | — | — | — | |
| Target Corp. | 7.11% | — | — | — | — | — | |
| Walmart Inc. | 3.04% | — | — | — | — | — | |
| ROA, Sector | |||||||
| Consumer Staples Distribution & Retail | 4.65% | — | — | — | — | — | |
| ROA, Industry | |||||||
| Consumer Staples | 5.91% | — | — | — | — | — | |
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
ROA = 100 × Net earnings attributable to Walgreens Boots Alliance, Inc. ÷ Total assets
= 100 × 3,982 ÷ 67,598 = 5.89%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Walgreens Boots Alliance Inc. ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019. |