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Compute, Disaggregate, and Interpret Competitors' Rates of Return Selected balance sheet and income statement information for the drug retailers CVS Health Corporation and Walgreen Co.

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Compute, Disaggregate, and Interpret Competitors' Rates of Return Selected balance sheet and income statement information for the drug retailers CVS Health Corporation and Walgreen Co. follows. Assume tax rate of 35%. $ ($ millions) CVS Health Walgreen Sales revenue-2014 $114,100 $78,184 Interest expense-2014 89 Net income-2014 3,357 2,514 Total assets-2014 62,543 26,454 Total assets-2013 60,169 24,275 Stockholders' equity-2014 38,051 14,847 Stockholders' equity-2013 37,700 14,400 588 a. Compute the 2014 return on assets (ROA) for each company. (Round your answers to one decimal place.) CVS Health Walgreen ROA % % b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. (Round your answers to one decimal place.) CVS Health Walgreen PM % % AT c. Compute the 2014 return on equity (ROE) and return on financial leverage (ROFL) for each company. (Round your answers to one decimal place.) CVS Health Walgreen ROE % ROFL % % %

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