Refer to the 2011 annual reports for CVS Corporation and Southwest Airlines Co., which you can find

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Refer to the 2011 annual reports for CVS Corporation and Southwest Airlines Co., which you can find using either the "Investor Relations" portion of each company's website (do a web search for CVS and Southwest investor relations) or by going to www. sec.gov and, under the "Filings" tab, clicking on "Search for company filings." Prepare a table for the following key financial performance measures for the two most recent years for both companies. (Round to one decimal place.) Use your computations in C4 or perform those analyses if you have not done so. Total assets for Southwest in 2009 were $14,269 million.
• Profitability and total asset management: profit margin, asset turnover, return on assets
• Financial risk: debt to equity ratio
• Liquidity: 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.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Managerial Accounting

ISBN: 978-1133940593

10th edition

Authors: Susan V. Crosson, Belverd E. Needles

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