Annual Report Analysis
Objective: To apply the skills learned in class in analyzing a real world financial statement.
Requirement:
Write a two-page typed paper (not including ratio calculations， single space) in which you analyze the annual report of CVS, and comparing your company to Walgreens. 今年的annual report， 以及一些数据需要用到去年的annual report
Your paper should discuss the following (using the subheadings suggested below):
Introduction: Describe the business and the general business conditions in which the company operates.
Profitability analysis: Briefly analyze the profitability ratios of your company, comparing them with your comparison company. Provide a judgment regarding the past, present, and future profitability of your company. Do at least two years of ratios for each company. In your analysis consider (if appropriate for your company) the return on equity ratio, the return on assets ratio, the profit margin ratio, the asset turnover ratio, the gross profit margin ratio, the operating expenses to sales ratio, EPS, and the PE ratio.
Liquidity analysis: Briefly analyze the liquidity ratios of your company, comparing them with your comparison company. Provide a judgment regarding the past, present, and future liquidity of your company. Do at least two years of ratios for each company. In your analysis consider (if appropriate for your company) the current ratio, receivables turnover ratio, average collection period, inventory turnover ratio, and average days in inventory ratio.
Solvency analysis: Briefly analyze the solvency ratios of your company, comparing them with your comparison company. Provide a judgment regarding the past, present, and future solvency of your company. Do at least two years of ratios for each company. In your analysis consider (if appropriate for your company) the current ratio, current cash debt coverage ratio, debt to total assets ratio, the times interest earned ratio, the total cash debt coverage ratio, and the free cash flow.
Writing assignment grading: Grading will be based on (1) the professional nature of your analysis (correct ratios, logical analysis); and (2) the professional nature of your writing style. You must turn in a copy of the financial statements when you turn in your paper to receive credit. 把两个公司的financial statement的copy给我
