CVS Health Corporation (NYSE: CVS) and Walgreens Boots Alliance, Inc. (NASDAQ: WBA) are competitors. In this case,

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CVS Health Corporation (NYSE: CVS) and Walgreens Boots Alliance, Inc. (NASDAQ: WBA) are competitors. In this case, we will be looking at the financial positions of both companies to answer the question of which company is in a stronger financial position, CVS or Walgreens.


Following is a table of various financial data and ratios for both CVS and Walgreens for their most recent fiscal years. The data are arranged in alphabetic order.


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Requirements1. Rearrange the data and ratios into a report format that groups similar data and ratios together to make it easier to analyze the data.2. Using the given financial data for CVS, discuss the company’s:a. Ability to pay current liabilities;b. Ability to sell inventory and collect receivables;c. Ability to pay long-term debt; andd. Profitability.3. Using the given financial data for Walgreens, discuss the company’s:a. Ability to pay current liabilities;b. Ability to sell inventory and collect receivables;c. Ability to pay long-term debt; andd. Profitability.4. What conclusions can you draw from your analysis of the two companies? Which company do you think is in a stronger financial position?

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9780137858514

7th Edition

Authors: Karen W. Braun, Wendy M. Tietz

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