Walgreens Boots Alliance Inc (WBA)
Pretax margin
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | -7,390,000 | -6,798,000 | -7,374,000 | 89,000 | -4,938,000 | -5,257,000 | -4,998,000 | -4,716,000 | 4,307,000 | 6,170,000 | 7,566,000 | 7,579,000 | 3,209,000 | 2,579,000 | -615,000 | -588,000 | 804,000 | 913,000 | 3,845,000 | 4,132,000 |
| Revenue (ttm) | US$ in thousands | 148,445,000 | 145,518,000 | 144,409,000 | 142,217,000 | 139,712,000 | 136,739,000 | 133,981,000 | 132,914,000 | 132,484,000 | 134,297,000 | 135,290,000 | 134,271,000 | 136,618,000 | 137,102,000 | 138,097,000 | 141,108,000 | 139,109,000 | 138,317,000 | 138,220,000 | 136,893,000 |
| Pretax margin | -4.98% | -4.67% | -5.11% | 0.06% | -3.53% | -3.84% | -3.73% | -3.55% | 3.25% | 4.59% | 5.59% | 5.64% | 2.35% | 1.88% | -0.45% | -0.42% | 0.58% | 0.66% | 2.78% | 3.02% |
August 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-7,390,000K ÷ $148,445,000K
= -4.98%
The pretax margin of Walgreens Boots Alliance Inc has shown fluctuations over the provided periods. From November 2019 to May 2020, the pretax margin was relatively stable, hovering around 0.58% to 0.66%. However, there was a notable decline in the pretax margin during the subsequent quarters, reaching negative values by August 2020 and remaining negative until February 2022.
The company witnessed a positive turnaround in pretax margin from May 2022 onwards, with significant improvements seen in the margins, reaching a peak of 5.64% in February 2023. However, this upward trend was short-lived as the pretax margin started declining again, dipping back into negative territory by August 2023.
Overall, the negative pretax margins from August 2023 to August 2024 indicate that the company's earnings before taxes were insufficient to cover its operating expenses and taxes over these periods, suggesting potential challenges in maintaining profitability and operational efficiency. Further analysis of the company's cost structure and revenue generation may provide insights into the factors contributing to these fluctuations in pretax margin.
Peer comparison
Aug 31, 2024