"We are reorienting to our legacy strength as a retail pharmacy-led company which will enable us to respond to shifts in consumer behavior dynamically." - Tim Wentworth, CEO
— Tim Wentworth
03Detailed Report
WBA
Walgreens Boots Alliance Inc
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
Walgreens Boots Alliance Inc (WBA) reported disappointing results for Q4 2024, with a net loss of $3.0 billion, driven by significant charges pertaining to valuation allowances on deferred tax assets and goodwill impairments. Despite a positive revenue increase of 6.00% year-over-year to $37.5 billion, demand pressures, particularly in retail segments, coupled with ongoing reimbursement issues in the pharmacy business, highlight the challenges the company faces. Management has outlined a clear strategy focusing on transforming the business into a pharmacy-led health and beauty retail company, with ambitions for operational efficiency and debt reduction that should resonate with investors in the long term.
Key Performance Indicators
Revenue
Increasing
37.55B
QoQ: 3.29% | YoY: 6.00%
Gross Profit
Decreasing
6.25B
16.65% margin
QoQ: -3.19% | YoY: -3.43%
Operating Income
Increasing
-977.00M
QoQ: -980.18% | YoY: 116.63%
Net Income
Increasing
-3.01B
QoQ: -973.55% | YoY: 1 569.44%
EPS
Increasing
-3.48
QoQ: -970.00% | YoY: 1 557.14%
Revenue Trend
Margin Analysis
Financial Highlights
1. Revenue Growth: Revenue for Q4 2024 reached $37.5 billion, up 6.00% YoY and 3.29% QoQ.
2. Net Income: Adjusted net income was a loss of $3.0 billion compared to a loss of $3.1 billion in the previous year.
3. Earnings Per Share (EPS): Reported EPS was -$3.48, a significant decline in performance due to non-recurring charges.
4. Cash Flow: Operating cash flow for the fiscal year totaled $1 billion, positively impacted by working capital initiatives. Free cash flow increased to $1.1 billion for the quarter, reflecting substantial operational cash management.
5. Balance Sheet: The company reduced net debt by $1.9 billion, closing the fiscal year with $3.2 billion in cash and equivalents and $5.8 billion credit facilities available.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
37.55B
6.00%
3.29%
Gross Profit
6.25B
-3.43%
-3.19%
Operating Income
-977.00M
116.63%
-980.18%
Net Income
-3.01B
1 569.44%
-973.55%
EPS
-3.48
1 557.14%
-970.00%
Key Financial Ratios
Gross Profit Margin
Weak
16.70%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.03%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.08%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.04%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.29%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.68
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
3.15
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-0.67x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.77x
Trading below book value, potential value opportunity or distressed
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