Interpreting Financial Results: Walgreens Corporation Walgreens Corporation is a global pharmaceutical company specializing in the wholesale and retail of prescription drugs and health and wellbeing products. The company boasts of a wide distribution network for pharmaceuticals, as well as the title of the largest purchaser of prescription medicine in the world. As of December 2014, the company is now a wholly owned subsidiary of Walgreens Boots Alliance, after a merger with Alliance Boots. Using ratio analysis, this paper seeks to analyse the financial statements of Walgreens Corporation and interpret these results against historical data, as well as industry benchmarks. Particular emphasis is on the balance sheet and the income statement from the year 2013 to 2015. (B = Billions) 1. Liquidity ratios a) …show more content…
2013 = 11.87B – 8.88B = 2.99B 2014 = 12.24B – 8.9B = 3.34B 2015 = 19.66B – 16.56B = 3.1B b) Current Ratio = Current Assets/Current Liabilities This ratio shows the relationship between current assets relative to the company’s current liabilities. A ratio of 1:1 means that the company has no working capital. 2013 = 11.87B/8.88B = 1.34 2014 = 12.24B/8.9B = 1.38 2015 = 19.66B/16.56B = 1.19 c) Quick/Acid Test Ratio = (Cash & Short term investments + Accounts Receivables)/Current Liabilities This ratio shows the amount of assets available that the company can quickly convert to cash. 2013 = (2.11B + 2.63B)/8.88B = 0.53 2014 = (2.65 + 3.22B)/8.9B = 0.66 2015 = (3.04B + 6.85B)/16.56B = 0.6 Liquidity Ratios Walgreens Sector: Drug retailers Industry: Customer services 2015 2014 2013 2015 2014 2013 2015 2014 2013 Current Ratio 1.19 1.38 1.34 - 1.23 1.32 - 1.13 1.15 Quick Ratio 0.60 0.66 0.53 - 0.63 0.66 - 0.59
= 1.47 Big Lots have a current ratio of 1.47 which is larger than 1 and indicates that they would have adequate funds available to pay their short-term obligations. With Big Lots having a current ratio of $1.47 for each dollar in current liabilities would indicate that they are maintaining their total current assets favorably to cover their current liabilities that are due
Walgreens has thrived in the pharmaceutical industry among many competitors in the 117 years at has done business to become one of America’s most respected companies and the benchmark of the retail drugstore business. (Our Past). Fast forward from 1901 to 2014 and Walgreens has transformed into a worldwide icon by completing a successful merger with Alliance Boots to become the publicly traded company
Walgreen’s also strives to provide excellent customer experience, more supportive structure, and is network to drive change within the company. With high barriers to entry into the industry it is likely that Walgreens overall business strategy will help them stay on top. Some of the recent strategic decisions “Walgreens Boots Alliance has been making are correct and aggressive efforts to expand its geographical footprint and support revenue growth through strategic acquisitions and partnerships.” (Horizon Investment.). Walgreens is currently trying to integrate with Rite Aid which will allow for hefty expansion and cost improvement.
Walgreens is the one of large American pharmaceutical companies, with approximately 8,000 stores at convenient positions in every city, involving nearly 24 hours and drive-through customer services. There are several vital values from Walgreens that lead our group to select it as our objective company. First and foremost, the corporation concentrates on customer-oriented, which is contributed to expand customer base and promote positive reputation. Walgreens provide vital benefit strategies to consumers through convenient locations, multitudinous choices of products, excellent customer service, and low cost prescriptions. In addition, the company offers the series of special health and wellness services, which include cost-efficient and time-effective
Financial statements are an important part of any business. They provide an overview of a companies’ financial health and standings by accurately analyzing an organization’s balance sheet, income, cash flow, and equity statements. Furthermore, the accuracy of these documents permits companies to make important decisions concerning future investments, planning and forecasting. For this essay, I will break down Target’s 2016 financial statement to research their inventory method and why it fits their business model. Additionally, I will determine their net purchases by using the cost of goods formula and finally I will calculate their inventory turnover and days sales inventory in comparison to Kohl’s corporation.
Practitioners collaborate with local physicians who are available for consultation at all times patients are being treated. This writer has been employed with the Healthcare Clinic at Walgreens since 2008. Majority of the information presented in this paper are from this writer’s first hand experience while working for the company. For academic purposes, this paper explores the challenges and opportunities dealt by the company from 2008 until the present. Investigate the problem and collect evidence to support the fact that the problem exists.
Financial Analysis Report Rehma Mohamed Market Profile Payout ratio (%) 35 Dividend ($) 1.32 Dividend yield (%) 1.68 Earnings per share (ttm) 3.72 Price/earnings (ttm) 21.04 Price/sales (ttm) 1.11 Price/book (mrq) 6.12 Financial Highlights Profit margin (ttm) 5.33% Return on assets (ttm) 9.15% Return on equity (ttm) 31.86% Revenue (ttm) 13.51B Gross profit (ttm) 5.10B Operating cash flow 1.22B Trading Information Beta 1.27 Market capitalization ($) 14.90B 52-Week change 27.67% 50-Day moving average 79.77 200-Day moving average 76.79 Shares outstanding 190.41M Institutional holdings (%) 57.70% Insider holdings (%) 26.23% Short interest
Company Overview Walgreens Boots Alliance Inc. or better known as Walgreens currently operates as one of largest retail drugstore chain in the world. With over 12,800 stores in 11 countries, Walgreens Boots Alliance Inc. has solidified its standing as a leader in the retail drug market. The newly formed corporation was designed with a holding company structure and has a presence in over 25 countries and employs upwards to 370,000 people making it the largest retail pharmacy destination in both the United States and Europe (Annual Report, 2014). Walgreens gained a 45 % stake in Alliance Boots at the end of 2012 in an attempt at creating a global brand. Walgreens decided to take an option of a complete buyout which would be finalized in 3 years,
Fin Comparative Analysis Problem: Amazon.com, Inc. vs. Wal-Mart Stores, Inc. ACC/290 April 24, 2017 Introduction Inventory turnover is the ratio that shows how many times in a year in which a firm translates its inventory into sales. It ensures that a business has enough inventory as compared to its sales level. A high ratio indicates that a firm is performing better since many customers come to buy as shown by increased sales implying that much of the stock is sold. A low turnover ratio indicates that few customers are buying from the firm and thus the sales are few while inventory levels are still high (Kimmel, Weygandt, & Kieso, 2016).
The organization said its transactions with wellbeing arrangements and bosses had brought about holding only 11.4 percent, or around 10 million, of the 90 million medicines oversaw by Express Scripts that were filled by Walgreen in the financial year that finished Aug. 31. Walgreen, situated in Deerfield, Ill., is the country's biggest drug store chain with more than 8,200 areas in the United States. Its retail locations work under the Walgreens and Duane Reade names. Walgreen said it anticipates that a negative effect will income of 21 pennies an offer in financial 2012 from the separation with Express Scripts, expecting that it in the long run holds 25 percent of the clients who have Express Scripts arranges. The organization would not discharge a particular evaluation
Walgreens is the nation’s leading operator of hospital outpatient pharmacies, serving about 180 health systems nationwide. They offer patients a way to pay for all of this and maintain their prescriptions in one place without sacrificing the safety, service or convenience. Walgreens remains among the fastest growing retailers in the country with a growth rate of between 1.5 and 2.5 percent in 2013. In 2010 Walgreens acquired the Duane Reade drugstore chain in New York City, and began building many of its urban retailing and store design concepts into Walgreens stores across the country. Walgreens powered Duane Reade’s pharmacy operations with the best of Walgreens systems and expertise.
Store managers uses consolidated sales and inventory reports to compare and analyze demands of customers and store needs. These information helps to design store budget and to manage purchase orders for inventory department, calculating employee pays submitting financial reports to corporate managers. http://www.fundinguniverse.com/company-histories/walgreen-co-history/ Walgreens vision is to be America’s most-loved pharmacy-led health, well-being and beauty retailer. Its purpose is to champion everyone’s right to be happy and healthy.
Loblaw Companies Limited uses various social media platforms to effectively create an identity that is socially responsible and respectful, and to set the company apart from competitors such as Walmart. Through the analysis of Loblaw’s twitter page, Third Annual Corporate Social Responsibility Report, and the homepage of loblaw.ca, I will explore how Loblaw includes ethos, pathos, and logos in each of their portrayals of the company. Loblaw’s twitter features a tweet showcasing that their President’s Choice Children’s Charity has just committed $150 million to childhood hunger and nutrition on September 21st, 2017. Included in the tweet is a link to an article detailing this news and a picture of the owner of Loblaw Companies Limited, Galen
Analysis of Financial Statements Student number: 10221450 Word count: 2993 words Excluding Bibliography Course code: B9AC106 Course title: Financial Analysis Lecturer: Mr. Enda Murphy Company: Whitbread PLC Table of Contents 1. Whitbread plc 3 Financial Ratio Comparison 6 1.1 Profitability Ratio 6 1.2 Liquidity Ratio 9 1.3 Efficiency Ratio 11 2. Intercontinental hotels group plc and Ratio Comparison with Whitbread 12 3. 10% Stake in Intercontinental Hotels Group PLC 13 Conclusion 16 Market Value and Book Value
Previously, I have focused on providing analysis of financial data, completing this report has given me a better understanding of the applicability of business analysis. When confronted with the limitations of ratio analysis I will be able to provide further value in my investigations. However, as I found in my report business analysis tools are not able to provide all the