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
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
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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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