Gross Margin % is calculated as gross profit divided by its revenue. Walgreens Boots Alliance's Gross Profit for the
three
months ended in May. 2022 was $6,572 Mil. Walgreens Boots Alliance's Revenue for the
three
months ended in May. 2022 was $32,597 Mil. Therefore, Walgreens Boots Alliance's Gross Margin % for the quarter that ended in May. 2022 was 20.16%.
Warning Sign:
Walgreens Boots Alliance Inc gross margin has been in long-term decline. The average rate of decline per year is -3.8%.
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: 21.18 Med: 25.07 Max: 29.24
Current: 21.82
During the past 13 years, the highestGross Margin % of Walgreens Boots Alliance was 29.24%. The lowest was 21.18%. And the median was 25.07%.
WBA's Gross Margin % is ranked worse than 80.53% of 606
companies
in the Healthcare Providers & Services industry
Industry Median: 43.06
vs WBA: 21.82
Walgreens Boots Alliance had a gross margin of 20.16% for the quarter that ended in May. 2022 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Walgreens Boots Alliance was -3.80% 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 Annual Data
Trend
Aug12
Aug13
Aug14
Aug15
Aug16
Aug17
Aug18
Aug19
Aug20
Aug21
Gross Margin %
24.67
23.41
23.45
21.38
21.18
Walgreens Boots Alliance Quarterly Data
Aug17
Nov17
Feb18
May18
Aug18
Nov18
Feb19
May19
Aug19
Nov19
Feb20
May20
Aug20
Nov20
Feb21
May21
Aug21
Nov21
Feb22
May22
Gross Margin %
21.02
21.90
22.34
22.83
20.16
Competitive Comparison
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 Gross Margin % Distribution
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.
* 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.
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 20.16% for the quarter that ended in May. 2022 => Competition eroding margins
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 is a leading retail pharmacy chain, with over 13,000 stores in 50 states and 9 countries. Walgreens' core strategy involves brick-and-mortar retail pharmacy locations in high-traffic areas, with nearly 80% of the U.S. population living within 5 miles of a store. Currently, the company has a leading market share of the domestic prescription drug market at about 20%. In 2021, the company sold off a majority of its Alliance Healthcare wholesale business to AmerisourceBergen for $6.5 billion, doubling down on its core pharmacy efforts and ventures in strategic growth areas in primary care (VillageMD) and digital offerings. The company also has equity stakes in AmerisourceBergen (29%) and Sinopharm Holding Guoda Drugstores (40%).
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