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Financial Statement Interpretation Fin 571

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Financial Statement Interpretation
LeMoura Giddings, Rebecca Tessen, James Scheu
FIN 571
May 30, 2016
Professor Arnold Harvey

Abstract
Learning Team C has chosen three organizations from three different industries. Team C has chosen CVS Health for service, Honda Motor Co., LTD for Manufacturing, and Starbucks Coffee for retail. Team C will calculate and explain the current ratio, quick ratio, net profit margin, asset utilization, and financial leverage. Team C will also discuss the DuPont Method. An analysis of the differences in the industries, the various conventions and how they affect these organizations, ISAB basis for accounting (IFRS) and FASB or GAAP accounting principles, the strategies for working capital for all three organizations, and analyzing the financial ratios and interpreting what they mean for each organization as well as future forecasts.

Financial Statement Interpretation
Differences in the Industries
CVS Health operates in two segments: Pharmacy Services and Pharmacy Retail. While Pharmacy Retail may be what it is most widely known for, it is Pharmacy Services that is the most profitable segment for the health company. The Pharmacy Services division serves primarily employers, the managed care plan for Medicaid, and pharmaceutical contracts. CVS Health, the most integrated pharmacy chain in the United States, includes nearly 8,000 drugstores and over 1,000 clinics. Additionally, CVS Health has expanded their reach in both these fronts with the acquisition of Omnicare and Target locations, and the integration of their innovative Minute Clinics.
Honda Motor Company, LTD produces and manufactures an array of motor products (Reuters, 2016). There are four segments to Honda: motorcycles, automobiles, financial services and power products (Reuters, 2016). Japan is the main operational hub as well as other parts of the world

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