Access the income statments and balance sheets for CVS health and it’s largest competitor Walgreens Analyze the financials year-over-year (2 years) for both firms and explain in your initial post which company is stronger.

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Access the income statments and balance sheets for CVS health and it’s largest competitor Walgreens

Analyze the financials year-over-year (2 years) for both firms and explain in your initial post which company is stronger.

CVS income statement: http://finance.yahoo.com/q/is?s=CVS+Income+Statement&annual

CVS balance sheet: http://finance.yahoo.com/q/bs?s=CVS+Balance+Sheet&annual

Walgreens income statement: http://finance.yahoo.com/q/is?s=WBA+Income+Statement&annual

Walgreens balance sheet: http://finance.yahoo.com/q/bs?s=WBA+Balance+Sheet&annual

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Answer= Performance of Walgreensis better than  CVS Health

Explanation= Current ratio and assets turnover ratio is good for Walgreens than CVS though there increse in net income and turnover for CVS comparative to Walgreens

Asset turnover=net revenues/Average total Assets

or CVS

139,367,000/74,252,000=1.88

126,761,000/71,526,000 =1.77

For walgreens

76,392,000/37,182,000 =2.05

72,217,000/35,481,000=2.04

Current ratio = current assets ÷ current liabilities

For CVS

25,983,000/19,027,000=1.36 25,325,000/15,425,000 =1.64

For Walgreens

12,242,000/8,895,000 =1.37 11,874,000 /8,883,000 =1.34

Increase in Net Income

For CVS

4,644,000*100/4,592,000= 11.32%

Decrease in net income

For Walgreens

1,932,000*100/ 2,450,000 = 21%

Increase in Turnover

For CVS

139,367,000*100/126,761,000=10%

For walgreens

76,392,000*100/72,217,000 = 6%

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