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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:
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%.
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.
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.
Walgreens Boots Alliance Annual Data | |||||||||||||||||||||
Trend | Aug15 | Aug16 | Aug17 | Aug18 | Aug19 | Aug20 | Aug21 | Aug22 | Aug23 | Aug24 | |||||||||||
Gross Margin % | Get a 7-Day Free Trial | 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 | 18.28 | 18.45 | 19.00 | 17.77 | 16.65 |
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.
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.
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.
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.
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 |
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