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Selected balance sheet and income statement information for the drug retailers CVS Health Corporation and Walgreen Co. follows. Assume tax rate of 35%. ($ millions)
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 revenue2014 | $107,100 | $72,184 |
Interest expense2014 | 588 | 89 |
Net income2014 | 3,457 | 2,714 |
Total assets2014 | 64,543 | 27,454 |
Total assets2013 | 62,169 | 26,275 |
Stockholders equity2014 | 38,051 | 14,847 |
Stockholders equity2013 | 37,700 | 14,400 |
a. Compute the 2014 return on assets (ROA) for each company. (Round your answers to one decimal place.)
CVS Health | Walgreen | |
---|---|---|
ROA | Answer | Answer |
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 | Answer | Answer |
AT | Answer | Answer |
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 | Answer | Answer |
ROFL | Answer | Answer |
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