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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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