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Financial Reporting One

In: Business and Management

Submitted By jplante523
Words 3567
Pages 15
Financial Reporting Project: CVS Health Corporation and Walgreens, Co.
Financial Reporting Project: CVS Health Corporation and Walgreens, Co.
Progress report two
CHRISTOPHER ALLEN, SYED BOKHARI, GAELLE DENIZE, AND JONATHAN PLANTE
Progress report two
CHRISTOPHER ALLEN, SYED BOKHARI, GAELLE DENIZE, AND JONATHAN PLANTE
2015
2015

Table of Contents

Module 4 Questions………………………………………………..pages 2-3

Module 6 Questions………………………………………………..page 3

Module 7 Questions………………………………………………..pages 4-5

Module 8 Questions………………………………………………..page 5-6

Accompanying Exhibits to Module 4……………………………...pages 7-9

Module 5 Questions (Exhibits six through eight)……………….....pages 9-11

Accompanying Exhibits to Module 6……………………………...pages 11-12

Accompanying Exhibits to Module 7……………………………...pages 12-14

Proxy Statement Questions………………………………………...page 15

Works Cited……………...………………………………………...pages 16-17

Return on Equity, Analysis, including the analysis of Operating and Non-operating Return (for a detailed analysis, please refer to Exhibit One, Two, and Three)
In the fiscal years of 2012 and 2013, Walgreens Boots Alliance (WBA) had a higher return on equity (ROE) than did CVS; however, in 2014, CVS had a higher ROE than did WBA. (CVS and WBA 10-Ks) Both components of ROE (operating and non-operating) explain this above information.
For the fiscal years of 2012 and 2013, WBA had a higher operating return, which is also called return on net operating assets (RNOA), than did CVS. This can be further analyzed by examining the two components of RNOA, net operating profit margin (NOPM) and net operating asset turnover (NOAT). (Easton, et al) Although CVS consistently had a higher NOPM than did WBA, WBA’s higher RNOA in 2012 and 2013 can be attributed to the fact that WBA had a higher net operating asset turnover (NOAT) than did CVS in those years. However, during

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