Compare the financial performance of CVS Corporation and Southwest Airlines Co. on the basis of liquidity and profitability for 2004 and 2003. Use the following ratios: working capital, current ratio, debt to equity ratio, profit margin, asset turnover, return on assets, and return on equity. In 2002, total assets and total stockholder’s equity for CVS were $9,645.3 million and $5.197.0 million, respectively. Southwest’s total assets were $8,954 million, and total stockholders’

equity was $4,422 million in 2002. Comment on the relative performance of the two companies. In general, how does Southwest’s performance compare to CVS’s with respect to liquidity and profitability? What distinguishes Southwest’s profitability performance from that of CVS?

Ethical Dilemma Case Ethics and Financial Reporting