Selected balance sheet and income statement information for the drug retailers CVS Health Corporation and Walgreens Boots Alliance follows. Assume an incremental tax rate of 35%.

a. Compute the 2017 return on assets (ROA) for each company.

b. Disaggregate ROA into profit margin (PM) and asset turnover (AT) for each company.

c. Compute the 2017 return on equity (ROE) and return on financial leverage (ROFL) for each company.

d. Discuss any differences in these ratios for each company. Identify the factor(s) that drives the differences in ROA observed from your analyses in parts a through c.

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($ millions) CVS Health Walgreens Boots Sales revenue-2017..... Interest expense-2017.... Net income 2017. $184,765 $118.214 1,062 728 6,623 4,101 Total assets-2017. 95,131 66,009 Total assets-2016. 94,462 72,688 Stockholders' equity-2017. Stockholders' equity-2016. 37,695 28,274 36,834 30,281