PM * TAT EM =ROE Ratio Computation Complete the ratios using the data available for CVS Health Corp (CVS US). Using actual financial statements introduces students to real world decisions. Short-Term Solvency, or Liquidity, Measures FY 2018 FY 2019 Current ratio: Quick ratio: Cash ratio: Long-Term Solvency Measures Total debt ratio: Debt-equity ratio: Equity multiplier: Times interest earned: Cash coverage: Asset Management, or Turnover, Measures Inventory turnover: Days' sales in inventory: Receivables turnover: Days' sales in receivables: Total asset turnover: Profitability Measures Profit margin: Dupont Identity Return on assets (ROA): Return on equity (ROE): Return on equity (ROE): CVS Health Corp (CVS US) - Adjusted Commonsize FY 2018 FY 2019 FY 2018 FY 2019 Revenue S 194,579.00 S 256,776.00 + Sales & Services Revenue $ 185,735.00 $ 192,643.00 + Other Revenue $ 8,844.00 S 64,133.00 - Cost of Revenue $ 163,041.00 S 211,248.00 + Cost of Goods & Services $ 163,041,00 $ 211,248.00 Gross Profit S 31,538.00 S 45,528.00 + Other Operating Income $ S Operating Expenses $ 20,747.00 S 32,625.00 + Selling, General & Admin + Selling & Marketing $ 364.00 $ 396.00 Research & Development $ $ Other Operating Expense $ 20,383.00 $ 32,229.00 Operating Income (Loss) $ 10,791.00 S 12,903.00 - Non-Operating (Income) Loss $ 2,615.00$ 2,911.00 + Interest Expense, Net $ 2,619.00 3,035.00 + Interest Expense $ 2,619.00 $ 3,035.00 - Interest Income S $ + Foreign Exch (Gain) Loss $ S Other Non-Op (Income) Loss $ (4.00) (124.00 Pretax Income (Loss), Adjusted $ 8,176.00 S 9,992.00 Abnormal Losses (Gains) $ 6,770.00 $ 995.00 + Merger/Acquisition Expense $ 492.00 $ 480.00 + Early Extinguishment of Debt $ 79.00 + Asset Write-Down $ 43.00 + Impairment of Goodwill $ 6,149.00 + Gain/Loss on Sale/Acquisition of Business 86.00 $ 205.00 + + S - $ 231.00 + Legal Settlement + Restructuring + Other Abnormal Items Pretax Income (Loss), GAAP - Income Tax Expense (Benefit) + Current Income Tax + Deferred Income Tax Income (Loss) from Cont Ops -Net Extraordinary Losses (Gains) + Discontinued Operations + XO & Accounting Changes Income (Loss) Incl. MI - Minority Interest Net Income, GAAP - Preferred Dividends - Other Adjustments Net Income Avail to Common, GAAP 1,406.00 $ 2,002.00 S 1,979.00 S 23.00 $ (596.00 $ $ 8,997.00 2.366.00 3.015.00 (649.00 6,631.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ S (596.00) (2.00) $ (594.00) S $ (594.00) S 6,631.00 (3.00) 6,634.00 6,634.00 Commonsize FY 2019 FY 2018 FY 2019 FY 2018 8,056.0 6,581.0 4,059.0 2,522.01 17,631.0 17,631.01 0.0 16,450.0 5,683.01 2,373.0 19,617.0 19,617.0 0.0 17,516.01 4,581.0 5,113.0 Consolidated Balance Sheets - USD ($) $ in Millions Total Assets + Cash, Cash Equivalents & STI + Cash & Cash Equivalents + ST Investments + Accounts & Notes Receiv + Accounts Receivable, Net + Notes Receivable, Net + Inventories + Raw Materials + Work In Process + Finished Goods + Other Inventory + Other ST Assets + Derivative & Hedging Assets + Deferred Tax Assets + Misc ST Assets Total Current Assets + Property, Plant & Equip, Net + Property, Plant & Equip - Accumulated Depreciation + LT Investments & Receivables +LT Investments + Other LT Assets + Total Intangible Assets + Goodwill + Other Intangible Assets + Deferred Tax Assets + Derivative & Hedging Assets + Misc LT Assets Total Noncurrent Assets Total Assets Liabilities & Shareholders' Equity + Payables & Accruals 4,581.0 45,243.00 11,349.0 26,869.0 15,520.0 15,732.0 15,732.0 124,132.01 115,202.0 78,678.01 36,524.01 5,113.0 50,302.0 32,904.0 49,794.0 16,890.0 17,314.0 17,314.0 121,929.0 112,870.0 79,749.0 33, 121.0 8,930.0 151,213.0 196,456.0 9,059.0 172,147.0 222,449.00 37,148.0 43, 105.01 14,135.00 17,371.01 23,013.0 1,985.0 720.0 25.734.0 5,377.0 0.0 1,623.01 27.01 1,596.0 3.754.0 4,821.01 0.01 1,265.0 4,876.00 0.0 4,876.0 44,009.0 71,444.0 70,802.01 642.0 642.01 + Accounts Payable + Accrued Taxes + Interest & Dividends Payable + Other Payables & Accruals + ST Debt + ST Borrowings ST Lease Liabilities + ST Finance Leases + ST Operating Leases + Current Portion of LT Debt + Other ST Liabilities + Deferred Revenue + Derivatives & Hedging + Misc ST Liabilities Total Current Liabilities + LT Debt + LT Borrowings + LT Lease Liabilities +LT Finance Leases +LT Operating Leases + Other LT Liabilities + Accrued Liabilities + Pension Liabilities + Deferred Revenue + Deferred Tax Liabilities + Derivatives & Hedging + Misc LT Liabilities Total Noncurrent Liabilities Total Liabilities + Preferred Equity and Hybrid Capital Share Capital & APIC + Common Stock + Additional Paid in Capital - Treasury Stock + Retained Earnings + Other Equity Equity Before Minority Interest + Minority/Non Controlling Interest Total Equity Total Liabilities & Equity 4,821.01 53,303.0 83,625.0 63,918.0 19,707.0 781.00 18,926.01 21,351.0 0.0 25.0 0.0 7,294.0 22,460.0 0.0 12.0 0.0 7,677.0 14,771.01 93,904.0 137,913.0 0.0 45,440.00 17.0 45,423.01 28,228.0 40.911.0 102.0 58,225.0 318.0 58,543.0 196,456.01 14,032.01 104.976.0 158,279.0 0.01 45,972.0 17.01 45,955.0 28,235.0 45, 108.0 1,019.0 63,864.0 306.0 64,170.0 222,449.00 PM * TAT EM =ROE Ratio Computation Complete the ratios using the data available for CVS Health Corp (CVS US). Using actual financial statements introduces students to real world decisions. Short-Term Solvency, or Liquidity, Measures FY 2018 FY 2019 Current ratio: Quick ratio: Cash ratio: Long-Term Solvency Measures Total debt ratio: Debt-equity ratio: Equity multiplier: Times interest earned: Cash coverage: Asset Management, or Turnover, Measures Inventory turnover: Days' sales in inventory: Receivables turnover: Days' sales in receivables: Total asset turnover: Profitability Measures Profit margin: Dupont Identity Return on assets (ROA): Return on equity (ROE): Return on equity (ROE): CVS Health Corp (CVS US) - Adjusted Commonsize FY 2018 FY 2019 FY 2018 FY 2019 Revenue S 194,579.00 S 256,776.00 + Sales & Services Revenue $ 185,735.00 $ 192,643.00 + Other Revenue $ 8,844.00 S 64,133.00 - Cost of Revenue $ 163,041.00 S 211,248.00 + Cost of Goods & Services $ 163,041,00 $ 211,248.00 Gross Profit S 31,538.00 S 45,528.00 + Other Operating Income $ S Operating Expenses $ 20,747.00 S 32,625.00 + Selling, General & Admin + Selling & Marketing $ 364.00 $ 396.00 Research & Development $ $ Other Operating Expense $ 20,383.00 $ 32,229.00 Operating Income (Loss) $ 10,791.00 S 12,903.00 - Non-Operating (Income) Loss $ 2,615.00$ 2,911.00 + Interest Expense, Net $ 2,619.00 3,035.00 + Interest Expense $ 2,619.00 $ 3,035.00 - Interest Income S $ + Foreign Exch (Gain) Loss $ S Other Non-Op (Income) Loss $ (4.00) (124.00 Pretax Income (Loss), Adjusted $ 8,176.00 S 9,992.00 Abnormal Losses (Gains) $ 6,770.00 $ 995.00 + Merger/Acquisition Expense $ 492.00 $ 480.00 + Early Extinguishment of Debt $ 79.00 + Asset Write-Down $ 43.00 + Impairment of Goodwill $ 6,149.00 + Gain/Loss on Sale/Acquisition of Business 86.00 $ 205.00 + + S - $ 231.00 + Legal Settlement + Restructuring + Other Abnormal Items Pretax Income (Loss), GAAP - Income Tax Expense (Benefit) + Current Income Tax + Deferred Income Tax Income (Loss) from Cont Ops -Net Extraordinary Losses (Gains) + Discontinued Operations + XO & Accounting Changes Income (Loss) Incl. MI - Minority Interest Net Income, GAAP - Preferred Dividends - Other Adjustments Net Income Avail to Common, GAAP 1,406.00 $ 2,002.00 S 1,979.00 S 23.00 $ (596.00 $ $ 8,997.00 2.366.00 3.015.00 (649.00 6,631.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ S (596.00) (2.00) $ (594.00) S $ (594.00) S 6,631.00 (3.00) 6,634.00 6,634.00 Commonsize FY 2019 FY 2018 FY 2019 FY 2018 8,056.0 6,581.0 4,059.0 2,522.01 17,631.0 17,631.01 0.0 16,450.0 5,683.01 2,373.0 19,617.0 19,617.0 0.0 17,516.01 4,581.0 5,113.0 Consolidated Balance Sheets - USD ($) $ in Millions Total Assets + Cash, Cash Equivalents & STI + Cash & Cash Equivalents + ST Investments + Accounts & Notes Receiv + Accounts Receivable, Net + Notes Receivable, Net + Inventories + Raw Materials + Work In Process + Finished Goods + Other Inventory + Other ST Assets + Derivative & Hedging Assets + Deferred Tax Assets + Misc ST Assets Total Current Assets + Property, Plant & Equip, Net + Property, Plant & Equip - Accumulated Depreciation + LT Investments & Receivables +LT Investments + Other LT Assets + Total Intangible Assets + Goodwill + Other Intangible Assets + Deferred Tax Assets + Derivative & Hedging Assets + Misc LT Assets Total Noncurrent Assets Total Assets Liabilities & Shareholders' Equity + Payables & Accruals 4,581.0 45,243.00 11,349.0 26,869.0 15,520.0 15,732.0 15,732.0 124,132.01 115,202.0 78,678.01 36,524.01 5,113.0 50,302.0 32,904.0 49,794.0 16,890.0 17,314.0 17,314.0 121,929.0 112,870.0 79,749.0 33, 121.0 8,930.0 151,213.0 196,456.0 9,059.0 172,147.0 222,449.00 37,148.0 43, 105.01 14,135.00 17,371.01 23,013.0 1,985.0 720.0 25.734.0 5,377.0 0.0 1,623.01 27.01 1,596.0 3.754.0 4,821.01 0.01 1,265.0 4,876.00 0.0 4,876.0 44,009.0 71,444.0 70,802.01 642.0 642.01 + Accounts Payable + Accrued Taxes + Interest & Dividends Payable + Other Payables & Accruals + ST Debt + ST Borrowings ST Lease Liabilities + ST Finance Leases + ST Operating Leases + Current Portion of LT Debt + Other ST Liabilities + Deferred Revenue + Derivatives & Hedging + Misc ST Liabilities Total Current Liabilities + LT Debt + LT Borrowings + LT Lease Liabilities +LT Finance Leases +LT Operating Leases + Other LT Liabilities + Accrued Liabilities + Pension Liabilities + Deferred Revenue + Deferred Tax Liabilities + Derivatives & Hedging + Misc LT Liabilities Total Noncurrent Liabilities Total Liabilities + Preferred Equity and Hybrid Capital Share Capital & APIC + Common Stock + Additional Paid in Capital - Treasury Stock + Retained Earnings + Other Equity Equity Before Minority Interest + Minority/Non Controlling Interest Total Equity Total Liabilities & Equity 4,821.01 53,303.0 83,625.0 63,918.0 19,707.0 781.00 18,926.01 21,351.0 0.0 25.0 0.0 7,294.0 22,460.0 0.0 12.0 0.0 7,677.0 14,771.01 93,904.0 137,913.0 0.0 45,440.00 17.0 45,423.01 28,228.0 40.911.0 102.0 58,225.0 318.0 58,543.0 196,456.01 14,032.01 104.976.0 158,279.0 0.01 45,972.0 17.01 45,955.0 28,235.0 45, 108.0 1,019.0 63,864.0 306.0 64,170.0 222,449.00