Walgreens Boots Alliance Inc (WBA)
Operating profit margin
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -14,076,000 | -6,882,000 | 1,387,000 | 2,342,000 | 982,000 |
| Revenue | US$ in thousands | 149,391,000 | 140,471,000 | 132,961,000 | 131,917,000 | 138,974,000 |
| Operating profit margin | -9.42% | -4.90% | 1.04% | 1.78% | 0.71% |
August 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-14,076,000K ÷ $149,391,000K
= -9.42%
The operating profit margin of Walgreens Boots Alliance Inc has fluctuated over the past five years, ranging from -9.42% in August 2024 to 1.78% in August 2021. A negative operating profit margin indicates that the company's operating expenses exceeded its revenue, leading to losses from its core business operations. The improving trend from negative margins in 2024 and 2023 to positive margins in 2021 and 2022 suggests some progress in controlling costs and/or increasing revenue generation efficiency. However, the decrease in the margin in 2024 compared to the previous year is a cause for concern, as it indicates a potential decrease in operational efficiency or profitability. Overall, the company should focus on strategies to enhance its operating profit margin to ensure sustainable financial performance in the future.
Peer comparison
Aug 31, 2024