CVS Health Corporation (NYSE: CVS) and Walgreens Boots Alliance, Inc. (NASDAQ: WBA) are competitors. In this case, we will be looking at the financial positions of both companies to answer the question of which company is in a stronger financial position, CVS or Walgreens.

Following is a table of various financial data and ratios for both CVS and Walgreens for their most recent fiscal years. The data are arranged in alphabetic order.

Requirements1. Rearrange the data and ratios into a report format that groups similar data and ratios together to make it easier to analyze the data.2. Using the given financial data for CVS, discuss the company’s:a. Ability to pay current liabilities;b. Ability to sell inventory and collect receivables;c. Ability to pay long-term debt; andd. Profitability.3. Using the given financial data for Walgreens, discuss the company’s:a. Ability to pay current liabilities;b. Ability to sell inventory and collect receivables;c. Ability to pay long-term debt; andd. Profitability.4. What conclusions can you draw from your analysis of the two companies? Which company do you think is in a stronger financial position?

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123 A 4 5 6 Current ratio 7 Days' sales in receivables Debt ratio 8 9 Earnings per share 10 Inventory turnover 11 Net income ($ in millions) 12 Operating income percentage 13 Acid-test (quick ratio) 14 Rate of return on net sales 15 Return on assets 16 Revenues ($ in millions) 17 Times interest earned 18 Working capital 19 $ $ B $ CVS Health Corporation Selected Financial Data For years ended December 31 2020 0.91 28.09 0.70 5.48 $ 9.11 7,179 S 5.18% 0.35 2.67% 4.45% $ 268,706 $ 4.79 (5,648) $ 2019 0.94 26.47 0.71 5.10 $ 9.35 6,634 $ 4.67% 0.37 D 2.58% 4.62% 256,776 $ 3.95 (3,001) S 2018 1.03 28.90 0.70 (0.57) 9.86 (594) 2.07% 0.40 -0.31% 1.39% 194,579 1.54 1,234 E $ $ F $ G H Walgreens Boots Alliance, Inc. Selected Financial Data For years ended August 31 2020 2021 0.72 13.46 0.70 2.94 $ 12.99 2,542 $ 1.77% 0.31 1.92% 4.09% 132,509 $ 2.59 $ (6,240) $ 0.67 16.96 0.76 0.52 $ 11.12 456 0.81% 0.17 $ 0.37% 1.38% 121,982 $ 1.60 (8,997) $ 2019 0.73 20.97 0.64 4.32 9.73 3,982 3.97% 0.32 3.32% 6.83% 120,074 7.33 (7,069)