Refer to CVS Corporation's annual report and Southwest Airlines Co.'s financial statements in the Supplement to Chapter

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Refer to CVS Corporation's annual report and Southwest Airlines Co.'s financial statements in the Supplement to Chapter 16. Prepare a table for the following key financial performance measures for the two most recent years for both companies. (Round to one decimal place.) Use your computations in C4 or perform those analyses if you have not done so. Total assets for Southwest in 2009 were $14,269 million.

• Profitability and total asset management: profit margin, asset turnover, return on assets

• Financial risk: debt to equity ratio

• Liquidity: cash flow yield, free cash flow

Evaluate and comment on the relative performance of the two companies with respect to each of the above categories.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Principles of Financial Accounting

ISBN: 978-1133939283

12th edition

Authors: Belverd E. Needles, Marian Powers

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