Refer to CVS’s annual report in the Supplement to Chapter 16 and to the following data (in millions) for Walgreens: cost of goods sold, $51,692 and $48,444 for 2011 and 2010, respectively; inventories, $8,044, $7,378, and $6,789 for 2011, 2010, and 2009, respectively.12 Ending inventories for 2009 for CVS were $10,343 million.

Calculate inventory turnover and days’ inventory on hand for 2010 and 2011. (Round to one decimal place.) If you did C4, refer to your answer there for CVS. Has either company improved its performance in these areas over the past two years? If so, what advantage does this give the company? Which company appears to make the most efficient use of inventories? Explain your answers.