Walgreens Boots Alliance Inc (WBA)
Net profit margin
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -3,080,000 | 4,337,000 | 2,542,000 | 456,000 | 3,982,000 |
| Revenue | US$ in thousands | 140,471,000 | 132,961,000 | 131,917,000 | 138,974,000 | 136,162,000 |
| Net profit margin | -2.19% | 3.26% | 1.93% | 0.33% | 2.92% |
August 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-3,080,000K ÷ $140,471,000K
= -2.19%
The net profit margin is a key financial ratio that indicates the percentage of each dollar of revenue that ultimately translates into net income. It's a crucial measure of a company's profitability and efficiency in managing its expenses.
Analyzing the net profit margin for Walgreens Boots Alliance Inc over the five-year period provides insights into the company's financial performance.
In 2023, the net profit margin of -2.21% signifies that the company incurred a net loss equivalent to 2.21% of its total revenue. This negative net profit margin implies that the company's expenses and costs exceeded its revenue for the year, resulting in a loss.
In 2022, the net profit margin of 3.27% improved significantly from the previous year, indicating a stronger ability to convert revenue into profit. This improvement demonstrates effective cost management and operational efficiency.
In 2021, the net profit margin stood at 1.92%, showing a moderate increase from the previous year. Although it is not as high as in 2022, the company maintained a reasonable level of profitability relative to its revenue.
In 2020, the net profit margin was 0.33%, indicating a slight increase in profitability but still at a relatively low level. This suggests that the company's ability to generate profit from its revenue was limited.
In 2019, the net profit margin was 2.91%, representing a relatively strong profitability level compared to the following years.
Overall, the fluctuation in net profit margin over the five-year period indicates varying levels of efficiency in generating profit from revenue. The negative net profit margin in 2023 is a cause for concern and may require a detailed examination of the company's cost structure and revenue generation. Conversely, the comparatively higher net profit margins in 2019 and 2022 indicate periods of stronger profitability for the company. It is essential for the company to focus on improving its cost management and operational efficiency to sustain and enhance its profitability in the future.
Peer comparison
Aug 31, 2023