Examine Walgreens’, CVS Caremark’s, and Rite Aid’s 2009 financial performance in the table below. Evaluate Walgreens’ performance against direct external competition using the financial data and ratios. Is Walgreens’

performance the same as, better than, or worse than that of CVS and Rite Aid? Why is this the case? If your university library has access to hoovers.com (or a similar database), look up these financial ratios for the current year. Has the financial performance improved or worsened for these three retailers?

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Key Numbers Walgreen CVS Caremark Rite Aid Annual sales ($ millions) 63,335.0 98,729.0 25,669.1 Employees 238,000 295,000 97,500 Gross profit margin (%) 27.95 20.64 26.58 Pretax profit margin (%) 5.12 5.99 (1.87) Net profit margin (%) 3.24 3.74 (2.01) Return on assets (%) 8.30 6.00 (6.30) Inventory turnover Asset turnover 6.4 8.0 5.6 2.6 1.6 3.1