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Walgreens Boots Alliance Gross Margin %

: 20.16% (As of May. 2022)
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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 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 highest Gross 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 %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 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 % 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 Premium Member Only Premium Member Only Premium Member Only 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.



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. 2021 is calculated as

Gross Margin % (A: Aug. 2021 )=Gross Profit (A: Aug. 2021 ) / Revenue (A: Aug. 2021 )
=28067 / 132509
=(Revenue - Cost of Goods Sold) / Revenue
=(132509 - 104442) / 132509
=21.18 %

Walgreens Boots Alliance's Gross Margin for the quarter that ended in May. 2022 is calculated as


Gross Margin % (Q: May. 2022 )=Gross Profit (Q: May. 2022 ) / Revenue (Q: May. 2022 )
=6572 / 32597
=(Revenue - Cost of Goods Sold) / Revenue
=(32597 - 26025) / 32597
=20.16 %

* 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 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 Business Description

Walgreens Boots Alliance logo
Address
108 Wilmot Road, Deerfield, IL, USA, 60015
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%).
Executives
Shulman Steven J director 1564 NE EXPRESSWAY ATTN: BJ PURCELL ATLANTA GA 30329
May Holly officer: EVP, Global Chief HR Officer 6301 FITCH PATH NEW ALBANY OH 43054
Gray Danielle officer: EVP and Global CLO C/O WALGREENS BOOTS ALLIANCE, INC. 108 WILMOT ROAD DEERFIELD IL 60015
Mahajan Manmohan officer: SVP, Global Controller and CAO C/O WALGREENS BOOTS ALLIANCE, INC. 108 WILMOT ROAD DEERFIELD IL 60015
Brewer Rosalind G director, officer: CEO C/O MOLSON COORS BREWING COMPANY 1225 17TH STREET, SUITE 3200 DENVER CO 80202
Puryear Pamela officer: EVP and Global Chief HRO 253 DOLPHIN COVE QUAY STAMFORD CT 06902
Jarrett Valerie B director USG CORPORATION 125 SOUTH FRANKLIN STREET CHICAGO IL 60606
Standley John T officer: EVP and President, Walgreen Co
Ashworth Richard M officer: SVP, President of Walgreen Co. 200 WILMOT ROAD DEERFIELD IL 60015
Dixon Heather Brianne officer: SVP, Global Controller and CAO AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Kehoe James officer: EVP and Global CFO KRAFT FOODS GROUP, INC. THREE LAKES DRIVE NORTHFIELD IL 60093
Almeida Jose E director ONE BAXTER PARKWAY DEERFIELD IL 60015
Roberts Simon John officer: EVP and President, Boots SEDLEY PLACE, 4TH FLOOR 361 OXFORD STREET LONDON X0 W1C 2LJ
Rosenstein Barry director C/O JANA PARTNERS LLC 767 FIFTH AVENUE, 8TH FLOOR NEW YORK NY 10153
Jana Partners Llc director 767 FIFTH AVENUE 8TH FLOOR NEW YORK NY 10153

Walgreens Boots Alliance Headlines

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