...American Corporation Analysis ACC/561 Sep 10, 2015 American Corporation Analysis Comparative and ratio analyses are two ways that companies look at their own growth and that of their competitors. Comparative analysis is a way for businesses to look over several accounting periods and find emerging trends and see how the business is progressing in areas. Ratio analysis is a financial technique that allows companies to quickly see how they are doing at any given moment and also allows investors to see how that company is doing at that moment. Two areas that can be looked into is that of ratio analysis which focuses on liquidity and profitability ratios. Team D chose to take the American of CVS to examine and compare it to that of its competitor Walgreens to analyze its growth within its market. Comparative Profitability Comparative analysis can be completed in a number of different bases. Intercompany basis compares the financial relationship of CVS with Walgreens which is one of the competing companies (Kimmel, Weygandt, & Kieso, 2011). As shown in figure 3, 1, we analyze the data from the published financial statements from each of the individual companies. CONDENSED INCOME STATEMENTS (in millions) | | CVS | Walgreens | | Dollars | Percent | Dollars | Percent | Net sales | $139,367.00 | 100.00% | $76,362.00 | 100.00% | Cost of goods sold | $114,000.00 | 81.80% | $54,823.00 | 71.79% | Gross profit | $25,367.00 | 18.20% | $21,539.00 | 28.21% | Selling...
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...Feinstein Graduate School Research Report: Company Resource Analysis A Research Project Submitted in Partial Fulfillment of the Requirements for the MBA Degree Course: MGMT6800 Business Policy and Strategy Professor: Trent Theroux Po Chiao Huang May 1, 2014 According to my research on company resource analysis in the drug store industry, I will select the CVS Caremark Corporation as my study company. Question 1: Whether the company's present strategy working? CVS pharmacy services business strategy centers on providing their customer and client high quality and innovative pharmaceutical solutions, while assisting their member managing overall health care costs by leveraging CVS expertise in core PBM services. (Form -10k) (1) Moreover, the retail pharmacy business strategy, base of the CVS pharmacy services model to maintain successful growth they focus on new store development by expanding the number of retail pharmacy stores and retail stores range in size in order to provide better service, help client lowers overall health care costs and improve health outcomes. (1) How these strategic working? Look into the financial performance in the Appendix 1, table 1. CVS compare well on these profitability ratios with industry averages. Most of ratios are better than the industry averages. Ventureline (2). Study the CVS’s financial report I found the company is “Solid and significant growth.” According to CVS Caremark Annual Report 2013 (3), the financial highlights...
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...Reporting Project: CVS Health Corporation and Walgreens, Co. Financial Reporting Project: CVS Health Corporation and Walgreens, Co. Progress report two CHRISTOPHER ALLEN, SYED BOKHARI, GAELLE DENIZE, AND JONATHAN PLANTE Progress report two CHRISTOPHER ALLEN, SYED BOKHARI, GAELLE DENIZE, AND JONATHAN PLANTE 2015 2015 Table of Contents Module 4 Questions………………………………………………..pages 2-3 Module 6 Questions………………………………………………..page 3 Module 7 Questions………………………………………………..pages 4-5 Module 8 Questions………………………………………………..page 5-6 Accompanying Exhibits to Module 4……………………………...pages 7-9 Module 5 Questions (Exhibits six through eight)……………….....pages 9-11 Accompanying Exhibits to Module 6……………………………...pages 11-12 Accompanying Exhibits to Module 7……………………………...pages 12-14 Proxy Statement Questions………………………………………...page 15 Works Cited……………...………………………………………...pages 16-17 Return on Equity, Analysis, including the analysis of Operating and Non-operating Return (for a detailed analysis, please refer to Exhibit One, Two, and Three) In the fiscal years of 2012 and 2013, Walgreens Boots Alliance (WBA) had a higher return on equity (ROE) than did CVS; however, in 2014, CVS had a higher ROE than did WBA. (CVS and WBA 10-Ks) Both components of ROE (operating and non-operating) explain this above information. For the fiscal years of 2012 and 2013, WBA had a higher operating return, which is also called return on net operating assets (RNOA), than did CVS. This can...
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...Financial Statement Analysis ACC 561/PR May 24, 2014 Financial Statement Analysis A company owner or manager requires financial statements to improve their business or to make any important decision regarding their operations. Puerto Rico is a land that has many companies doing business, some are local or international. CVS Caremark Corporation is one of the main traded companies doing business here. This Corporation provides integrated pharmacy and health care services in United States and Puerto Rico (CVS 2014). CVS Caremark Corp. sells prescriptions drugs and over the counter but also provides a variety of products for everyday use, such as cosmetics, convenience foods among others. The following represent a brief analysis on the financial statements of the corporation. Taking the last year financial statement reported on December 2013, the current ratio for CVS Caremark is 1:6 which means that the current assets are more than its current liabilities. The current ratio illustrates CVS Caremark ability to remain solvent. On the contrary, the Corporation liquidity ratio is 0.926 which means CVS may not have enough liquid assets to pay their debts in a short period. The DuPont ratio reflects a 12.02 return on equity, measuring the Corporation efficiency at generating profits from every shareholder's equity. CVS has a profit margin of 23% this indicates that the Corporation is not having control of the cost compared to its competitors meaning that CVS has a net income of...
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...CVS Health is the United States’ largest pharmacy health care provider. Their mission is to reinvent pharmacy to having a more active, supportive role in each person’s unique health experience and in the greater health care environment—from advising on prescriptions to helping manage chronic and specialty conditions to providing quality walk-in medical care and pharmacy benefits management. CVS Health opened its first store in 1963 and was known as Consumer Value Stores. They then sold health and beauty products. The company was founded in Lowell, Mass. by brothers Stanley and Sidney Goldstein, and partner Ralph Hoagland. Throughout the 60s they grew to 17 stores and opened their first store with a pharmacy department. During the 1970s, they grew to over 200 stores, acquiring stores from Clinton Drug & Discount and Mack Drugstores; they also hit $100 million in annual sales in 1974. In the 1980s they broke ground on the store support center in Woonsocket, RI, which still in 2015 is where their company headquarters belongs. By the end of the 1980s they had nearly 750 stores and had reached $1.6 billion in sales. In the 90s they had acquired more than 3200 stores from Arbor Drugstores, People’s Drug, and “the largest acquisition in the history of the U.S. retail pharmacy industry” from Pevco. They now claimed stores in the Midwest along with the east coast and were breaking ground in the south. In this time frame they also launched the program known as Pharmacare, a...
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...May 30, 2016 Professor Arnold Harvey Abstract Learning Team C has chosen three organizations from three different industries. Team C has chosen CVS Health for service, Honda Motor Co., LTD for Manufacturing, and Starbucks Coffee for retail. Team C will calculate and explain the current ratio, quick ratio, net profit margin, asset utilization, and financial leverage. Team C will also discuss the DuPont Method. An analysis of the differences in the industries, the various conventions and how they affect these organizations, ISAB basis for accounting (IFRS) and FASB or GAAP accounting principles, the strategies for working capital for all three organizations, and analyzing the financial ratios and interpreting what they mean for each organization as well as future forecasts. Financial Statement Interpretation Differences in the Industries CVS Health operates in two segments: Pharmacy Services and Pharmacy Retail. While Pharmacy Retail may be what it is most widely known for, it is Pharmacy Services that is the most profitable segment for the health company. The Pharmacy Services division serves primarily employers, the managed care plan for Medicaid, and pharmaceutical contracts. CVS Health, the most integrated pharmacy chain in the United States, includes nearly 8,000 drugstores and over 1,000 clinics. Additionally, CVS Health has expanded their reach in both these fronts with the acquisition of Omnicare and Target locations, and the integration of their innovative...
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...store was located in Massachusetts, and was called CVS for Consumer value stores. Since then it has become the second largest pharmacy chain with more than 7,600 stores all over United States. CVS is known for selling prescription drugs, general merchandise, seasonal merchandise, and convenience food all over the stores and online via CVS.com. The company also provides healthcare services located within CVS stores. CVS is known for having a broad variety of products and one of the leading drugstore chains. It is also known to be the largest employer of pharmacists and nurse practitioners. Stores are very customer friendly and are easy to approach and shop. The company has strong brand equity. The website also hold a large variety as well as providing tips for using a product. CVS is one of the few companies to be loyal and strong about CSR (corporate social responsibility). Though the revenue is growing, CVS still seem to have instability in the growth of the stores. The different locations have had many cases of armed robberies and there are no efforts into putting more security. There are few cases of government regulations and lawsuits that the company has faced as well. CVS has a lot of potential and has many opportunities to become bigger and better company. It could expand and improve their online retailing which could help stay strong. They could take the company worldwide and collaborate with global market. CVS could work on enhancing their health and beauty specialists’...
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...* This assignment is to compute and a write a summary (max. 250 words) interpreting selected liquidity ratios. 1. Companies Last name begins with the letters A through M: CVS N through Z: Eli Lilly You can work individually or in a group of not more than 2. If you work in a group, you must choose the members, and both must send the Academic Coach, Ms. Linda Anderson, a message stating so, AND the name of the member who would submit the assignment. THE SUBMISSION FROM THE DESIGNATED MEMBER ALONE WILL BE GRADED. If your last names fall in both categories (eg. Anderson and Surysekar), your message to Ms. Anderson should also include your choice of the company (CVS or Eli Lilly). If group work, both members will get the same score for this assignment. 2. Ratios to compute and interpret (only the following 4 liquidity ratios, defined in page 704 of the text): Current ratio Current cash debt coverage ratio Inventory turnover Accounts receivable turnover 3. Time period: Years 2009, 2010, 2011 4. Source: Company annual report CVS http://media.corporate-ir.net/media_files/IROL/99/99533/CVSCaremark2011_AR.pdf http://media.corporate-ir.net/media_files/irol/99/99533/2010_Annual_Report.pdf http://investors.cvscaremark.com/~/media/Files/C/CVS-IR/reports/cvs-ar-2009.pdf Eli Lilly http://files.shareholder.com/downloads/LLY/2732114219x0x548541/E8FFDA89-5EC1-4D08-AB37-CD85F4C0863D/English.PDF http://files.shareholder.com/down...
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...two critical paths. The completion of the project needs to complete the two paths at the same time. Once one of them cannot be finished on time, the total project can be delayed. Statement of the problem Med-X Inc., a fortune 500 pharmaceutical company had some problems in e-procurement implementation. The implementation was not going according to plan and the project manager was stuck in trouble of figuring out what was delaying the project. The situation is the Ariba implementation was broken up into several phases. However, the critical path went through two major components of the project: technical infrastructure setup and software customization. It must be one of the components was causing the delay. We should use earned value analysis to figure out which one is the delay source. Besides the effort to find out which of the two components (software, technical) is underperforming, we should...
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...Required ratios in the following table: Company name: CVS RATIO 2011 2010 2009 CURRENT RATIO 1.56:1 1.60:1 1.43:1 CURRENT CASH DEBT COVERAGE RATIO 0.51 times 0.41 times 0.31 times INVENTORY TURNOVER 10.66 times 9.01 times 9.55 times ACCOUNTS RECEIVABLE TURNOVER 17.71 times 19.58 times 18.09 times Is the overall liquidity position improving, worsening, staying the same or cannot say, between 2009 and 2011? Why do you say so? Taking into consideration the outcome from the current ratio, CVS improved from 2009 to 2010 but then it deteriorated in 2011. The most favorable liquidity positioning for current ratio was during the year 2010, that for every dollar of current liabilities the company had $ 1.60 of current assets. Although it’s important to note that this liquidity calculation and analysis is in disadvantage since it only uses the year end balances in the calculation to derive to the already stated results, which misleads the company’s position during most of the year. To correct this problem current cash debt coverage ratio presents a better picture of liquidity representation on the average day. CVS experienced a constant liquidity improvement from 2009 to 2011 When analyzing inventory turnover on 2009 the company experienced a good amount of inventory on hand relative to cost of goods sold. But when comparing this result to 2011 it reached a much higher inventory turnover improving their efficiency in its inventory management. CVS’s account receivable...
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...Case 1: Bond Funds presentation and analysis 1. Introduction (0,5 p) In this project, we have analyzed 184 bond funds classified according to the following variables * Type : intermediate government or short-term corporate * Expense ratio: ratio of expenses to net sales * Fees: Sales charges * Return 2009: twelve months return in 2009 * Three-years return: annualized return 2007-2009 * Five-years return: annualized return 2005-2009 * Risk: risk of loss factor of the mutual fund (bellow average, average, above average) In order to do the analysis, we have used several representations of the data and computed different measures that give indication of the variation as well as the central tendency. 2. Analysis (3,5 p) 3.1 Analysis by Fees Table 1: Funds measures per fees | Expense Ratio | Return 2009 | 3-Year Return | 5-Year Return | | Fees No | Fees Yes | Total | Fees No | Fees Yes | Total | Fees No | Fees Yes | Total | Fees No | Fees Yes | Total | Mean | 0,63 | 0,92 | 0,71 | 7,27 | 6,92 | 7,16 | 4,61 | 4,80 | 4,66 | 3,99 | 3,99 | 3,99 | Median | 0,60 | 0,95 | 0,70 | 6,75 | 5,55 | 6,40 | 5,10 | 5,30 | 5,10 | 4,25 | 4,30 | 4,30 | 1st Quartile | 0,50 | 0,85 | 0,53 | 3,60 | 2,93 | 3,48 | 4,13 | 3,70 | 4,05 | 3,63 | 3,40 | 3,60 | 3rd Quartile | 0,73 | 1,00 | 0,90 | 11,10 | 8,98 | 10,73 | 6,10 | 5,98 | 6,10 | 4,90 | 4,68 | 4,90 | Range | 1,82 | 0,73 | 1,82 | 40,80 | 34,50 | 40,80 | 22,70 | 13,90 | 23,20 | 13,70 | 8...
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...Ltd and Pubali Bank Ltd are two oldest private banks of Bangladesh which have played a significant role in economic development of Bangladesh. Therefore, I have made the following report to evaluate overall performance of both banks from 2009 to 2011 and to do comparison between them from 2009 to 2011. To evaluate and compare the overall performances between National Bank Ltd and Pubali Bank Ltd, I have collected data from secondary sources like Annual Report of both banks from 2009 to 2011,Online sources like website of both banks, DSE website etc. I have done Ratio Analysis (Liquidity Ratio Analysis, Profitability Ratio Analysis, Efficiency Ratio Analysis, Leverage Ratio Analysis & Market Position Ratio Analysis), Overall Risk & Specific Risk Analysis, Analysis of Return & Risk of Stock Prices, Systematic Risk or Volatility analysis of stock prices, Required rate of Return or Cost of Equity Capital Analysis and Analysis of Intrinsic value of Current Stock Price & its reflection on the fundamental of the banks for both banks to evaluate and compare their overall performance based on liquidity, profitability, efficiency, leverage management and market position. According to my findings, both National Bank Ltd and Pubali Bank Ltd have moderate and satisfactory overall performance which reflecting the fundamentals of the banks from 2009 to 2011 and National Bank Ltd is in better & satisfactory position based on overall financial performance than Pubali Bank Ltd from 2009 to 2011....
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...Introduction Inventory turnover, the ratio of a firm’s cost of goods sold to its average inventory level, is generally used to measure performance of inventory management, analyze short-term liquidity, and assess performance improvements over time. In general, a higher value of inventory turnover indicates better performance in controlling inventory levels. And a lower value may be an indication of over-stocking which may pose risk of obsolescence and increased inventory holding costs. Inventory Turnover=cost of good sold/average inventory Average Inventory=(beginning inventory+ending inventory)/2 Gross profit percentage, the ratio of a firm’s gross profit to net sales, often used to judge operating profitability.The higher the gross profit percentage is, the healthier the business is. The gross profit percentage is a statement to measure how efficient the business is in making profit during the production process. Gross profit=revenue-cost of good sold Gross profit percentage=gross profit/revenue*100% Industries with higher gross profit percentages tend to have lower inventory turnover, and those two figures are different for different industries. There are several factors affecting those two ratios in different industries. First, the products’ price.High prices lead to high gross profit percentage, on the other hand, high prices lower the demand and sales, thus decrease the inventory turnover. Second, length of products’ life cycle. Businesses which produce...
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...or about the designated date. The PM has to have the hand on approach or his or her project will fail. Key components to monitor the health of the project, as it relates to earned : Cost variance (CV) (CV: The difference between the budgeted cost of work performed [BCWP] on a task and the actual cost of work performed [ACWP]. If the CV is positive, the cost is currently under the budgeted amount; if the CV is negative, the task is currently over budget.)—the difference between a task's estimated cost and its actual cost (the formula CV = BCWP - ACWP). Take our earlier example where the total planned budget for a 4-day task is $100 and it starts on a Monday. When the status date is set to the following Wednesday, the BCWS is $75, the ACWP for this period is $70, and the BCWP is $60. In that case, the task's CV is -$10. Schedule variance (SV) (SV: The difference between the budgeted cost of work performed [BCWP] and the budgeted cost of work scheduled [BCWS]. This is calculated as follows: SV = Budgeted Cost of Work Performed - Budgeted Cost of Work Scheduled.)—the difference between the current progress and the scheduled progress of a task, in terms of cost (the formula SV = BCWP - BCWS). In the example above, the task's SV is -$15. The cost performance index (CPI) (CPI: Ratio of budgeted costs of work performed to actual costs of work performed [BCWP/ACWP]. The cumulative CPI [sum of the...
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...Rite Aid ------------------------------------------------- Company Statistics ------------------------------------------------- Company Rite Aid ------------------------------------------------- Exchange NYSE ------------------------------------------------- Ticker RAD ------------------------------------------------- Sector Consumer Staples ------------------------------------------------- Industry Retail Staples ------------------------------------------------- Recommendation Buy ------------------------------------------------- Current Price $5.68 ------------------------------------------------- Target Price $6.00 ------------------------------------------------- Market capitalization 5.268 B ------------------------------------------------- Shares outstanding 9.16 M ------------------------------------------------- ------------------------------------------------- Company Statistics ------------------------------------------------- Company Rite Aid ------------------------------------------------- Exchange NYSE ------------------------------------------------- Ticker RAD ------------------------------------------------- Sector Consumer Staples ------------------------------------------------- Industry Retail Staples ------------------------------------------------- Recommendation Buy ------------------------------------------------- Current Price $5.68 ------------------------------------------------- ...
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