How does cvss roa compare to walgreens and to the industry

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Reference no: EM131658457

Assignment: Exploring Asset Turnover and Return on Assets

Concepts

1. What sort of property and equipment do you think CVS has?
2. What were the proceeds from sale of property and equipment for 2014?
3. What depreciation method(s) does CVS use?
4. How are repair and maintenance costs accounted for?

Analysis

1. Were there any impairments, how does that impact CVS's financial situation.
2. What percentage of total assets was property and equipment, net?
3. What types of property and equipment are most significant in each company?
4. Does CVS have any goodwill, how does that impact the asset turnover ratio?

For CVS:

5. Calculate Return on Asset ratios.

6. Compare to Walgreens (for the last 5 years) and the industry average (for the current year).

7. Comment on the increase or decrease in CVS's ROA, give reasons for the any fluctuation (look at the components of the calculation for clues as to what caused the increase or decrease and examine the management discussion for events that impacted the ratios).

8. How does CVS's ROA compare to Walgreens and to the industry?

9. Calculate Asset Turnover.

10. Compare to Walgreens (for the last 5 years) and the industry average (for the current year).

11. What conclusions can you draw about each company's need to raise funds from debt and equity and its ability to grow?

Reference:

Text: Financial Accounting: Tools for Business Decision Making

Author: Kimmel, Weygandt, Kieso
Publisher: Wiley
Ed/Year: 7th/2013
ISBN-13 (hard cover): 978-1118162286
ISBN (e-text): 978-1118562178.

Reference no: EM131658457

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