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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.
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%. CVS Health Walgreen $139,367 $76,392 156 4,644 2,031 74,252 37,182 71,526 35,481 Stockholders' equity-2014 37,963 20,561 Stockholders' equity-2013 37,938 19,454 $ millions) Sales revenue-2014 Interest expense-2014 Net income-2014 Total assets-2014 Total assets-2013 600 a. Compute the 2014 return on assets (ROA) for each company. (Round your answers to one decimal place.) CVS Health Walgreen ROA 0 96 b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company. (Round your answers to one decimal place.) CVS HealthWalgreen PM 0 9% 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 0 ROFL Check
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