Cv Case Study Walgreens

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Concepts 1. What sort of property and equipment do you think CVS has? After analyzing CVS/Caremark’s annual report, I conclude that CVS has many items. However, more specifically, CVS holds a considerable amount of land that many buildings exist upon. These buildings of course require improvements to continue operation in not only the retail sector, rather the delivery of many medications through the mail. These all require buildings to store the vast amount of items that CVS possesses. Other items include equipment and fixtures, software and leasehold improvements. 2. What were the proceeds from sale of property and equipment for 2014? The total proceeds from the sale of properties and equipment that CVS documented are 11 million 3. What depreciation …show more content…

The property and equipment as indicated by CVS 2014 Annual report were 8,843 million. Therefore, the percentage would be 8.73% 3 What types of property and equipment are most significant in each company? Walgreens seems to value their buildings and the land those buildings exist upon along with the abilities to improve these. Of course with these buildings and land, equipment and fixtures lie within them. The value that Walgreens puts upon the equipment and fixtures super cedes any other factor of importance. Likewise, CVS appears to consider the same items as significant. However the only item that CVS embraces value to that Walgreens does not are their leasehold improvements 4 Does CVS have any goodwill, how does that impact the asset turnover ratio? The carrying value of goodwill and many other intangible assets was 28.1 billion and 9.8 billion as of December 31,2014. Goodwill unswervingly impacts the asset turnover ratio by cumulative amounts, hence the reason why it is incessantly beneficial to grasp what the adjusted total asset turnover is and how it compares to other businesses within the industry. For CVS: 5. Calculate Return on Asset

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