Describe the results of the ratio analysis Walgreens boot alliance and CVS from 2016 to 2020 focusing on the key ratios. A good way to do this is using graphs but I leave it up to each team to determine how they feel they can most effectively show these. Focus on trends, which company is performing stronger than the other, etc. Obviously the ratios need to be calculated correctly and equally important is your analysis of how you interpret these trends. In other words, what conclusions can you draw from them. To repeat what I stated in the project instructions, I do not want this to simply be a regurgitation of the ratio numbers but rather what did you see in the results that you liked or didnt like

Overall Balance sheet efficiency:

The balance sheet efficiency is measured by the time tied up in inventory and receivables. The lower the time in each of these leads to a company with greater efficiency.

Walgreens Boots Alliance
Year	2016	2017	2018	2019	2020
Average Accounts Receivable	$6,554.50	$6,394	$6,551	$6,900	$7,179
Average Inventory	$8,817	$8,928	$9,232	$9,449	$9,392
Sales	$117,351	$118,214	$131,537	$136,866	$139,537
Cost of Sales	$87,477	$89,052	$100,745	$106,790	$111,520
Days of Sales Outstanding	20.39	19.74	18.18	18.40	18.78
Days of Inventory Outstanding	36.79	36.59	33.45	32.30	30.74

CVS
Year	2016	2017	2018	2019	2020
Accounts Receivable	$12,164	$13,181	$17,631	$19,617	$21,742
Average Inventory	$14,381	$15,028	$15,873	$16,983	$18,006
Net Sales	$177,526	$184,765	$194,579	$256,776	$268,706
COGS	$148,669	$156,220	$190,558	$244,789	$254,795
Days of Sales Outstanding	25.01	26.04	33.07	27.89	29.53
Days of Inventory Outstanding	35.31	35.11	30.40	25.32	25.79

Return on investment (ROI) performance:

Return on investment (ROI) is a way to tell the profitability of an investment. ROI is a regularly used calculation to see the return/profit from an investment relative to the investment cost. If the ROI calculation returns a positive value then the investment will yield a worthy return. If the ROI value is negative then the investment will lose money.

Return on Investment = Income Generated/ 2-point Average Total Assets

Return on Equity = Income Generated/ 2-point Average Stockholders Equity

Walgreens Boots Alliance
Year	2016	2017	2018	2019	2020
Income	$4,191	$4,101	$5,024	$3,982	$456
Total Assets	$72,688	$66,009	$68,124	$76,598	$87,174
Average total Assets	$70,735	$69,349	$67,067	$72,361	$81,886
Stockholders Equity	$30,281	$28,274	$26,689	$67,598	$87,174
Average Stockholders Equity	$30,790.5	$29,278	$27,482	$47,144	$77,386
Return on Investment	0.0592	0.0591	0.0749	0.0550	0.0056
Return on Equity	0.1361	0.1401	0.1828	0.0845	0.0059
%Return on Investment	5.92 %	5.91 %	7.49 %	5.50 %	0.55 %
%Return on Equity	13.61 %	14.01 %	18.28 %	8.45 %	0.589 %

CVS
Year	2016	2017	2018	2019	2020
Income	$5,319	$6,623	-$594	$6,631	$7,192
Total Assets	$94,462	$95,131	$196,456	$222,449	$230,715
Average total Assets	$30,100	$94,797	$145,794	$209,453	$226,582
Stockholders Equity	$36,834	$37,695	$58,543	$64,170	$69,701
Average Stockholders Equity	$37,018.50	$37,265	$48,119	$61,357	$66,936
Return on Investment	0.1767	0.0699	-0.0041	0.0317	0.0317
Return on Equity	0.1437	0.1778	-0.0123	0.1081	0.1074

inventories) / Current Liabilities

Walgreens Boots Alliance
Year	2016	2017	2018	2019	2020
Current Assets	$25,883	$19,753	$17,846	$18,700	$18,073
Current Liabilities	$42,407	$37,735	$41,435	$43,446	$66,038
Quick Assets (Cash & Receivables)	$16,927	$10,854	$8,281	$9,367	$8,622
Inventories	$8,956	$8,899	$9,565	$9,333	$9,451
Working capital	-$16,524	-$17,982	-$23,589	-$24,746	-$47,965
Current Ratio	0.6103	0.5235	0.4307	0.4304	0.2737
Acid-Test Ratio	0.3992	0.2876	0.1999	0.21560	0.1306