1. Calculate the following ratios and filled in the worksheet for ratios. You must show your work. LIQUIDITY RATIOS: A. Net working capital for Walgreens Net working capital for CVS Analysis: What do the results of this calculation mean in the context of Walgreens? In the context of CVS? Compare the two - why are they different? Which is better or worse? Must be at least four sentences for the above analysis. B. Current ratio for Walgreens Current ratio for CVS What does the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). C. Quick ratio for Walgreens Quick ratio for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). PROFITABILITY CALCULATIONS: D. Gross profit $ and gross profit \% for Walgreens Gross profit $ and gross profit \% for CVS What do the results of this calculation mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). SOLVENCY RATIOS E. Debt ratio for Walgreens Debt ratio for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). ASSET MANAGEMENT RATIOS F. Accounts receivable turnover ratio for Walgreens Accounts receivable turnover ratio for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). G. Inventory turnover ratio for Walgreens Inventory turnover ratio for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). MARKET ANALYSIS RATIOS H. Earnings per share for Walgreens Earnings per share for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). I. Return on Equity for Walgreens Return on Equity for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). J. Market Cap for Walgreens Market Cap for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). I. Free Cash Flow for Walgreens Free Cash Flow for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). Ratios: Walgreens CVS 12/31/19 EXPLAIN 8/31/20 A Net Working Capital B Current ratio C Quick ratio D Gross Profit (\$ and \%) E Debt ratio Accounts Receivable F Turnover G Inventory Turnover HEPS I ROE J Market cap K Free Cash Flow 2. Using Walgreens financials, calculate a horizontal analysis (\$ and \%) on the income statement including gross profit (you will have to calculate). I recommend using EXCEL spreadsheet to do this question. 2a. Using Walgreens financials, then do the vertical analysis for the balance sheet for 2018 and 2017). I recommend using EXCEL spreadsheet to do this question. 2b. What do you notice about the change from year to year on income statement and the change in the balances compared to the prior year? Be as specific as possible. 3. Which company would you invest, Walgreens or CVS, based on the financial statement analysis? Give me at least two sentences on how much and why. 1. Calculate the following ratios and filled in the worksheet for ratios. You must show your work. LIQUIDITY RATIOS: A. Net working capital for Walgreens Net working capital for CVS Analysis: What do the results of this calculation mean in the context of Walgreens? In the context of CVS? Compare the two - why are they different? Which is better or worse? Must be at least four sentences for the above analysis. B. Current ratio for Walgreens Current ratio for CVS What does the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). C. Quick ratio for Walgreens Quick ratio for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). PROFITABILITY CALCULATIONS: D. Gross profit $ and gross profit \% for Walgreens Gross profit $ and gross profit \% for CVS What do the results of this calculation mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). SOLVENCY RATIOS E. Debt ratio for Walgreens Debt ratio for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). ASSET MANAGEMENT RATIOS F. Accounts receivable turnover ratio for Walgreens Accounts receivable turnover ratio for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). G. Inventory turnover ratio for Walgreens Inventory turnover ratio for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). MARKET ANALYSIS RATIOS H. Earnings per share for Walgreens Earnings per share for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). I. Return on Equity for Walgreens Return on Equity for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). J. Market Cap for Walgreens Market Cap for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). I. Free Cash Flow for Walgreens Free Cash Flow for CVS What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two - why are they different (be as specific as possible). Ratios: Walgreens CVS 12/31/19 EXPLAIN 8/31/20 A Net Working Capital B Current ratio C Quick ratio D Gross Profit (\$ and \%) E Debt ratio Accounts Receivable F Turnover G Inventory Turnover HEPS I ROE J Market cap K Free Cash Flow 2. Using Walgreens financials, calculate a horizontal analysis (\$ and \%) on the income statement including gross profit (you will have to calculate). I recommend using EXCEL spreadsheet to do this question. 2a. Using Walgreens financials, then do the vertical analysis for the balance sheet for 2018 and 2017). I recommend using EXCEL spreadsheet to do this question. 2b. What do you notice about the change from year to year on income statement and the change in the balances compared to the prior year? Be as specific as possible. 3. Which company would you invest, Walgreens or CVS, based on the financial statement analysis? Give me at least two sentences on how much and why