ACCT 610 Final Project

A G6 Company Comparison
Feras Altwaim, Kathryn Ellis, Samer Khalil, Dylan Thomas, Ashley Mozey
 $112B Mkt Cap
300,000 Employees

$42B Mkt Cap

277,000 Employees
G6 Investments: Our Message

Analysis of Profitability, Liquidity, and Solvency ratios

show that CVS serves as a superior medium to long-term
holding asset.
Agenda

• COVID-19 Impact & Company Response

• Solvency & Liquidity – A Measure of Risk
• Profitability – The Company Bottom Line
• Q&A
COVID-19 Impact & Company Response

Q1-Q2 2020 Q3 2020-Q1 2021 Q2 2021- Present

• Sluggish Growth • Government Contracts • Lifting Restrictions

• Stagnant Revenues • Revenue Growth • Continued Healthcare
Spending
Solvency & Liquidity: CVS is more Liquid

Current
Ratio .91 .67

Quick Ratio .53 .28

 Solvency & Liquidity – A Measure of Risk

Is more solvent than 

5.1x 8.3x
Profitability – The Company Bottom Line
Profitability – The Company Bottom Line
Profitability – The Company Bottom Line
Wrap
Q & AUp
 Appendix

Liquidity Profit Solvency

CVS Liquidity Ratios (Current Ratio = Current Assets / Current Liabilities) 2020 2019 2018 2017 2016
Current Assets 56,369 50,302 45,243 31,229 31,042
Current Liabilities 62,017 53,303 44,009 30,648 26,250
Current Ratio 0.9089282 0.94369923 1.02803972 1.01895719 1.18255238
Current Ratio (%) 91% 94% 103% 102% 118%

Walgreens Liquidity Ratios (Current Ratio = Current Assets / Current Liabilities) 2020 2019 2018 2017 2016
Current Assets 18,073 18,700 17,846 19,753 25,883
Current Liabilities 27,070 25,769 21,667 18,547 17,013
Current Ratio 0.6676 0.7257 0.8236 1.0650 1.5214
Current Ratio (%) 67% 73% 82% 107% 152%

CVS Liquidity Ratios (Working Capital = Current Assets - Current Liabilities) 2020 2019 2018 2017 2016
Current Assets 56,369 50,302 45,243 31,229 31,042
Current Liabilities 62,017 53,303 44,009 30,648 26,250
Working Capital for CVS (5648.00) (3,001) 1,234 581 4,792

Walgreens Liquidity Ratios (Working Capital = Current Assets - Current Liabilities) 2020 2019 2018 2017 2016
Current Assets 18,073 18,700 17,846 19,753 25,883
Current Liabilities 27,070 25,769 21,667 18,547 17,013
Working Capital for Walgreens (8,997) (7,069) (3,821) 1,206 8,870

CVS Liquidity Ratios (Quick Ratio = Cash + Marketable Securities + Accounts Receivable / Current Liabilities) 2020 2019 2018 2017 2016
Cash 7,854 5,683 4,059 1,696 3,371
Marketable Securities 3,000 2,373 2,522 111 87
Accounts Receivable 21,742 19,617 17,631 13,181 12,164
Curent Liabilities 62,017 53,303 44,009 30,648 26,250
Quick Ratio 0.5256 0.5192 0.5502 0.4890 0.5951
Quick Ratio (%) 53% 52% 55% 49% 60%

Walgreen Liquidity Ratios (Quick Ratio = Cash + Accounts Receivable / Current Liabilities) 2020 2019 2018 2017 2016
Cash & Cash Equivalents 516 1,023 785 3,301 9,807
Accounts Receivable, net 7,132 7,226 6,573 6,528 6260
Total Quick Assets 7,648 8,249 7,358 9,829 16,067
Current Liabilities 27,070 25,769 21,667 18,547 17,013
Quick Ratio 0.28252678 0.32011331 0.33959478 0.52995094 0.94439546
Quick Ratio (%) 28% 32% 34% 53% 94%
Operating Profit Margin
Column1 CVS Walgreens   ROI  
2016 5.85% 5.12%      
2017 5.16% 4.45%   CVS Walgreens
2018 2.07% 4.73% 2016 16.84% 13.01%
2019 4.67% 3.36% 2017 16.07% 12.28%
2020 5.18% -0.10% 2018 3.79% 16.06%
2019 9.36% 12.70%
  ROE   2020 10.65% -0.42%
     
  CVS Walgreens   Asset Turover
2016 14.81% 13.59%      
2017 18.85% 13.15%   CVS Walgreens
2018 -1.40% 19.44% 2016 1.88 1.61
2019 10.67% 15.02% 2017 1.94 1.79
2020 10.53% -3.19% 2018 0.99 1.93
2019 1.15 2.02
  ROA   2020 1.16 1.80
     
  CVS Walgreens   Debt-to-Capital
2016 5.69% 5.92%      
2017 7.10% 5.51%   CVS Walgreens
2018 -0.40% 7.63% 2020 0.48 29%
2019 3.01% 4.98% 2019 0.52 42%
2020 3.09% -0.79% 2018 0.56 36%
2017 0.42 32%
2016 0.43 39%
CVS Solvency Ratios (Liabilities-to-Equity Ratio = Total
Liabilities/ Stockholders' Equity) 2020 2019 2018 2017 2016
Total Liabilities 161,014 158,279 137,913 57,436 57,628
Stockholders' Equity 69,701 64,170 58,543 37,691 36,830
CVS 2.310067287 2.46655758 2.3557556 1.52386511 1.56470269

Walgreens Solvency Ratios 2020 2019 2018 2017 2016

Total Liabilities 66,038 43,447 41,435 37,645 42,407
Stockholder's Equity 20,637 23,512 26,689 28,364 30,281
Walgreens 3.199980617 1.84786492 1.55251227 1.32721055 1.40044913