Walgreens

CVS

1. Calculate the following ratios and filled in the worksheet for ratios. You must show your work. LIQUIDITY RATIOS:

   1. Net working capital for Walgreens, Net working capital for CVS

   2. Current ratio for Walgreens, Current ratio for CVS

   3. Quick ratio for Walgreens, Quick ratio for CVS

   4. Gross profit $ and gross profit % for Walgreens, Gross profit $ and gross profit % for CVS

   5. Debt ratio for Walgreens, Debt ratio for CVS

   6. Accounts receivable turnover ratio for Walgreens, Accounts receivable turnover ratio for CVS

   7. Inventory turnover ratio for Walgreens, Inventory turnover ratio for CVS

   8. Earnings per share for Walgreens, Earnings per share for CVS

   9. Return on Equity for Walgreens, Return on Equity for CVS

   10. Market Cap for Walgreens, Market Cap for CVS

   11. Free Cash Flow for Walgreens, Free Cash Flow for CVS

		Walgreens 8/31/20	CVS 12/31/19	equation
A	Net Working Capital
B	Current ratio
C	Quick ratio
D	Gross Profit ($ and %)
E	Debt ratio
F	Accounts Receivable Turnover
G	Inventory Turnover
H	EPS
I	ROE
J	Market cap
K	Free Cash Flow

1. Using Walgreens financials, calculate a horizontal analysis ($ and %) on the income statement including gross profit (you will have to calculate). I recommend using EXCEL spreadsheet to do this question.

   1. Using Walgreens financials, then do the vertical analysis for the balance sheet for 2018 and 2017). I recommend using EXCEL spreadsheet to do this question.

   2. What do you notice about the change from year to year on income statements and the change in the balances compared to the prior year? Be as specific as possible.

   3. Which company would you invest in, Walgreens or CVS, based on the financial statement analysis? Give me at least two sentences on how much and why