Walgreens vs Cvs Accounting
ACC 501
Summary:
CVS Caremark and Walgreens Co. are both free-standing pharmacies and stores (drug-retail). Both CVS Caremark Corporation and Walgreen Co. provide prescriptions and healthcare services (including nonprescription and OTC drugs), and general merchandise in the United States. Both offer walk-in clinic services, photo development, as well as basic grocery options.
CVS has approximately 7,001 stores across 45 states and Puerto Rico (the second largest to Walgreen Co. in the US), and was founded in Massachusetts in 1963. Walgreens operates in all 50 states with about 7,034 stores in the US, the District of Columbia and Puerto Rico. Walgreens was founded in Chicago, IL in 1901 and has since expanded.
Ratios + Comments:
| | |CVS | |Walgreen | |Industry |
| | |Caremark | |Co. | |Average |
|Ratio |Year | | | | | |
|ROA |2008 |5.46% | |9.63% | |0.2 |
| |2007 |4.79% | |10.57% | | |
| |2006 |6.59% | |10.22% | | |
| |2005 |7.92% | |10.68% | | |
| |2004 |6.22% | |10.12% | | |
The return on assets (ROA) percentage shows how profitable a company 's assets are in generating revenue. Compared to the industry average, CVS and Walgreen 's ROA are much higher. However, Walgreen 's ROA is higher than CVS 's; which means that the latter is not benefiting as much from its assets as Walgreens does.
In 2008,
Summary:
CVS Caremark and Walgreens Co. are both free-standing pharmacies and stores (drug-retail). Both CVS Caremark Corporation and Walgreen Co. provide prescriptions and healthcare services (including nonprescription and OTC drugs), and general merchandise in the United States. Both offer walk-in clinic services, photo development, as well as basic grocery options.
CVS has approximately 7,001 stores across 45 states and Puerto Rico (the second largest to Walgreen Co. in the US), and was founded in Massachusetts in 1963. Walgreens operates in all 50 states with about 7,034 stores in the US, the District of Columbia and Puerto Rico. Walgreens was founded in Chicago, IL in 1901 and has since expanded.
Ratios + Comments:
| | |CVS | |Walgreen | |Industry |
| | |Caremark | |Co. | |Average |
|Ratio |Year | | | | | |
|ROA |2008 |5.46% | |9.63% | |0.2 |
| |2007 |4.79% | |10.57% | | |
| |2006 |6.59% | |10.22% | | |
| |2005 |7.92% | |10.68% | | |
| |2004 |6.22% | |10.12% | | |
The return on assets (ROA) percentage shows how profitable a company 's assets are in generating revenue. Compared to the industry average, CVS and Walgreen 's ROA are much higher. However, Walgreen 's ROA is higher than CVS 's; which means that the latter is not benefiting as much from its assets as Walgreens does.
In 2008,