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Financial Analysis of Walgreens Co.

In: Business and Management

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Walgreens Co – Final Case Founded in 1901, Walgreens goal is to be consumers’ first choice for health and daily living across the nation, and a central part of people’s lives and the communities where they live and work. The company provides the most convenient, multi-channel access to goods and services, and pharmacy, health and wellness services while developing a new customer experience. Walgreens is the largest drug retailing chain in the United States as of 2012. A fiscal year for Walgreens end on August 31st, all of the measures are from either fiscal year 2012 or 2011. There are a couple of major things to be noted in the cash flow statement of Walgreens co. First and foremost is cash from operations, this is why the company is in business. This seems to be a strong suit of Walgreens as they posted an increase of 22% from the previous year at 4,431 million in cash from operations. Cash from operation includes their daily sales transections; this is a company’s bread and butter. Walgreens seems to have been in a skid the past three years posting decreased cash from operations in those years, but has since caught up to its previous highs. Another major item is their net income in cash, which was 2,127 million in 2012. It is slightly less from the previous three years, which should raise concerns in Walgreens management. This was a result of an increase in investments by the company; which saw a rise from 1,525 million to 5,860 million in year 2012. Walgreens issued 3 billion in long-term debt that will benefit the company in future cash endeavors. Walgreens has had an increase in their cash from operations in 2012. The past three years however have not seen either a static grown or loss. Walgreens has exchanged growth and loss in cash from operations in the past four years, which shows some weakness in Walgreens management of cash flow.

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