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WBA (Walgreens Boots Alliance) Gross Margin % : 16.65% (As of Aug. 2024)


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What is Walgreens Boots Alliance Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Walgreens Boots Alliance's Gross Profit for the three months ended in Aug. 2024 was $6,253 Mil. Walgreens Boots Alliance's Revenue for the three months ended in Aug. 2024 was $37,547 Mil. Therefore, Walgreens Boots Alliance's Gross Margin % for the quarter that ended in Aug. 2024 was 16.65%.

Warning Sign:

Walgreens Boots Alliance Inc gross margin has been in long-term decline. The average rate of decline per year is -4.5%.


The historical rank and industry rank for Walgreens Boots Alliance's Gross Margin % or its related term are showing as below:

WBA' s Gross Margin % Range Over the Past 10 Years
Min: 17.96   Med: 22.4   Max: 25.86
Current: 17.96


During the past 13 years, the highest Gross Margin % of Walgreens Boots Alliance was 25.86%. The lowest was 17.96%. And the median was 22.40%.

WBA's Gross Margin % is ranked worse than
86.71% of 617 companies
in the Healthcare Providers & Services industry
Industry Median: 41.13 vs WBA: 17.96

Walgreens Boots Alliance had a gross margin of 16.65% for the quarter that ended in Aug. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Walgreens Boots Alliance was -4.50% per year.


Walgreens Boots Alliance Gross Margin % Historical Data

The historical data trend for Walgreens Boots Alliance's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Walgreens Boots Alliance Gross Margin % Chart

Walgreens Boots Alliance Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.38 21.18 21.30 19.46 17.96

Walgreens Boots Alliance Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.28 18.45 19.00 17.77 16.65

Competitive Comparison of Walgreens Boots Alliance's Gross Margin %

For the Pharmaceutical Retailers subindustry, Walgreens Boots Alliance's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Walgreens Boots Alliance's Gross Margin % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Walgreens Boots Alliance's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Walgreens Boots Alliance's Gross Margin % falls into.



Walgreens Boots Alliance Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Walgreens Boots Alliance's Gross Margin for the fiscal year that ended in Aug. 2024 is calculated as

Gross Margin % (A: Aug. 2024 )=Gross Profit (A: Aug. 2024 ) / Revenue (A: Aug. 2024 )
=26524 / 147658
=(Revenue - Cost of Goods Sold) / Revenue
=(147658 - 121134) / 147658
=17.96 %

Walgreens Boots Alliance's Gross Margin for the quarter that ended in Aug. 2024 is calculated as


Gross Margin % (Q: Aug. 2024 )=Gross Profit (Q: Aug. 2024 ) / Revenue (Q: Aug. 2024 )
=6253 / 37547
=(Revenue - Cost of Goods Sold) / Revenue
=(37547 - 31294) / 37547
=16.65 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Walgreens Boots Alliance  (NAS:WBA) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Walgreens Boots Alliance had a gross margin of 16.65% for the quarter that ended in Aug. 2024 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Walgreens Boots Alliance Gross Margin % Related Terms

Thank you for viewing the detailed overview of Walgreens Boots Alliance's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Walgreens Boots Alliance Business Description

Address
108 Wilmot Road, Deerfield, IL, USA, 60015
Walgreens Boots Alliance is one of the largest retail pharmacy chains in the US, with over 8,500 locations. Nearly three quarters of Americans live within five miles of a Walgreens location. Roughly two thirds of revenue is generated from prescription drug sales; Walgreens makes up 20% of total prescription revenue in the US. Walgreens also generates sales from retail products (general wellness consumables and its own branded merchandise), European drug wholesale, and healthcare. With more locations incorporating additional services like Health Corner and Village Medical, Walgreens creates an omnichannel experience for patients and positions itself as a one-stop healthcare provider.
Executives
Inderpal S Bhandari director C/O WALGREENS BOOTS ALLIANCE, INC., DEERFIELD IL 60015
Manmohan Mahajan officer: SVP, Global Controller and CAO C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Nancy M Schlichting director 200 WILMOT ROAD, DEERFIELD IL 60015
Timothy C Wentworth director, officer: Chief Executive Officer C/O EXPRESS SCRIPTS HOLDING COMPANY, ONE EXPRESS WAY, ST. LOUIS MO 63121
Richard P. Gates officer: SVP, Chief Pharmacy Officer C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Neal J. Sample officer: EVP, Chief Information Officer 200 VESEY STREET, NEW YORK NY 10285
Todd Heckman officer: Interim Global Controller C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Polen Thomas E Jr director BECTON, DICKINSON AND COMPANY, 1 BECTON DRIVE, FRANKLIN LAKES NJ 07417
John Patrick Driscoll officer: EVP, Pres. U.S. Healthcare C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Rosalind G Brewer director, officer: CEO C/O MOLSON COORS BREWING COMPANY, 1225 17TH STREET, SUITE 3200, DENVER CO 80202
Kevin M. Ban officer: EVP, Chief Medical Officer C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Bryan C Hanson director ZIMMER BIOMET HOLDINGS, 345 E. MAIN STREET, WARSAW IN 46580
Henry Lee Cooper officer: EVP, Pres. Walgreens Pharmacy C/O WALGREENS BOOTS ALLIANCE, INC., 108 WILMOT ROAD, DEERFIELD IL 60015
Tracey D Brown officer: SVP, Pres., Walgreens Retail 675 AVENUE OF THE AMERICAS, 6TH FLOOR, NEW YORK NY 10010
Steven J Shulman director 1564 NE EXPRESSWAY, ATTN: BJ PURCELL, ATLANTA GA 30329