Essay on Walgreen Versus Cvs

Words: 6558
Pages: 27
Open Document
Executive Summary
The initial intent of this analysis was to identify changes in accounting methods within the financial statements of Walgreens and CVS Caremark, as well as to compare and contrast their financial statements, in order to draw conclusions about which company had also have better earnings. However, in the process of this analysis, with the exception of a minor change to lease accounting by Walgreens, there were no major changes in accounting methods identified. In examining the financial statements for these two drugstore industry leaders, the analysis shows that while each company conducts retail drugstore operations in similar ways, their business models for carrying out these operations greatly vary. These variances in …show more content…
Sales from retail pharmacy and pharmacy services segment almost 50% of total revenue year over year basis.

From 2008 to 2011, Walgreens reported a compounded annual growth rate of 6.93%, growing to $13.150 billion in total revenues.Net sales increased by 7.1% to $72.2 billion in fiscal 2011 compared to increases of 6.4% in 2010 and 7.3% in 2009. The acquisition of Duane Reade increased total sales by 1.7% in the current fiscal year compared to an increase of 1.1% last year. Drugstore sales increases resulted from sales gains in existing stores and additional sales from new stores, each of which include an indeterminate amount of market-driven price changes. Sales in comparable drugstores were up 3.3% in 2011, 1.6% in 2010 and 2.0% in 2009. Comparable drugstores are defined as those that have been open for at least twelve consecutive months without closure for seven or more consecutive days and without a major remodel or a natural disaster in the past twelve months.

Prescription sales increased 6.3% in 2011, 6.3% in 2010 and 7.8% in 2009. The acquisition of Duane Reade increased prescription sales by 1.2% in the current fiscal year versus an increase of 0.8% last year. Comparable drugstore prescription sales were up 3.3% in 2011 compared to increases of 2.3% in 2010 and 3.5% in 2009. Prescription sales as a percent of total net sales were
Show More

Related Documents: Essay on Walgreen Versus Cvs

Essay about Financial Analysis of Walgreens vs. Cvs

The initial intent of this analysis was to identify changes in accounting methods within the financial statements of Walgreens and CVS, as well as to compare and contrast their financial statements, in order to draw conclusions about which company had better earnings. However, in the process of this analysis, with the exception of a minor change to lease accounting by Walgreens, there were no major changes in accounting methods identified. In examining the financial statements for these two drugstore…

Words 7290 - Pages 30

Essay on dove presentation

bars are approximately 4 oz. * Can be found in many convenience stores around the world (CVS, Walgreens, Walmart, and Target) and online (Amazon). Competitio n *Indirect competitors: Axe, Suave, Caress, Simple, Tresemme, Degree. *Direct competitors: Neutrogena (Johnson’s & Johnson’s), Olay (Procter & Gamble), and the primary competitor, Nivea (Beiersdorf). *http ://www.ispot.tv/ad/7V1f/dove-dove-versus-ordinary-soap-wit h-therese-andmolly Brand Extension/Line Extension than 400 brand names…

Words 826 - Pages 4

Zynga Financial

Industry Information Industry Profile Zynga is a San Francisco based company and was founded in 2007 by CEO Mark Pincus, who named the company Zynga in reference to his late dog Zinga. The company currently has over 1000 employees, and its headquarters is still based in San Francisco. Zynga found an innovative way to put gaming at the hands of people. These games are accessed through their websites online, mobile devices or through social media outlets such as Facebook. This allows Zynga to be…

Words 905 - Pages 4

Managing Information Technology (7th Edition) Essay

CONTENTS: CASE STUDIES CASE STUDY 1 Midsouth Chamber of Commerce (A): The Role of the Operating Manager in Information Systems CASE STUDY I-1 IMT Custom Machine Company, Inc.: Selection of an Information Technology Platform CASE STUDY I-2 VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier CASE STUDY I-3 The VoIP Adoption at Butler University CASE STUDY I-4 Supporting Mobile Health Clinics: The Children’s Health Fund of New York City CASE STUDY I-5…

Words 239873 - Pages 960