Refer to the annual report of CVS Corporation and the financial statements of Southwest Airlines Co. in the supplements to Chapter 5. Prepare a table for the following key financial performance measures for the two most recent years for both companies. Use your computations in C 5 or perform those analyses if you have not done so. Total assets for Southwest in 2006 were $13,460 million.

Profitability: profit margin

asset turnover

return on assets

Long-term solvency: debt to equity ratio

Cash flow adequacy: cash flow yield

Free cash flow

Evaluate and comment on the relative performance of the two companies with respect to each of the above categories.