Financial Analysis of Walgreens Co. - 1790 Words

Walgreens Co – Final Case Founded in 1901, Walgreens goal is to be consumers’ first choice for health and daily living across the nation, and a central part of people’s lives and the communities where they live and work. The company provides the most convenient, multi-channel access to goods and services, and pharmacy, health and wellness services while developing a new customer experience. Walgreens is the largest drug retailing chain in the United States as of 2012. A fiscal year for Walgreens end on August 31st, all of the measures are from either fiscal year 2012 or 2011. There are a couple of major things to be noted in the cash flow statement of Walgreens co. First and foremost is cash from operations, this is why the†¦show more content†¦As well as if the company is good for issuing a loan, or investing in some other fashion such as bonds. For better breakdown these ratios have been separated in three categories: Measure of Profitability, Measures of Liquidity, and Measures of Solvency. Profitability: ROA, ROE, Gross Profit Percentage, Net Income Percentage. In all of these measures either Walgreens has stayed stagnant or had negative fallout from the previous year. Return on Asset is a ratio that measures how efficiently the company uses its assets. How much operating income the company generates given one dollar in asset. Walgreens went down from 15% to 11% compared to previous year. This shows a decline in the efficiency of the management. Walgreens needs to do a better job of managing its assets. Return on Equity measures how much net income is generated per dollar invested in the company by stockholders and investors. Again we see the same downward trend. It went down by 6% from 18% in 2011 to 12% in 2012. Gross Profit Percentage measures what percentage of revenue is converted to gross profit. Although they managed to remain stagnant in this category, that is not something that is ideal. One wants to see this number in crease year after year meaning that the company is getting more proficient in utilizing the money it has gotten through investments. Gross profit percentage for Walgreens is 28%. Net Income Percentage measures how much of revenue is converted toShow MoreRelatedWalgreens Fiancial Analysis2167 Words   |  9 PagesWalgreens Corporations Financial Analysis Introduction Walgreens operates 7,907 locations in 50 states, the District of Columbia, Guam and Puerto Rico with over 247,000 employees serving customers. The company has seen an increase in revenues, but an end to its contract to participate in the Express Scripts pharmacy provider network on December 31, 2011 poses a threat to revenues and profits for 2012 and future fiscal periods. This analysis will discuss Walgreen’s business strategy, provide aRead MoreWalgreens Company Analysis and Integration Strategy Essay10861 Words   |  44 PagesAnalysis of Walgreens By: Robert Antioho Christopher Bennington Andrew Graeff Jordan Lenz Jacob Wyand Chapter 1: Company Background and Mission Chapter 1: Company Background and Mission Walgreen Co. Introduction: Walgreen Co. (Walgreens) and its subsidiaries operate a drugstore chain in the United States. â€Å"The Company provides its customers with multichannel access to consumer goods and services, and pharmacy, health and wellness services in communitiesRead MoreEssay on Walgreens Company Analysis941 Words   |  4 PagesProduct Market Analysis Stock: Walgreen Co. (WAG) 52 Wks Price Information: Hi Lo EPS DPS Price Buy date: 1-18-06 49 41 1.57 .26 43.91 Sell date: 4-19-06 49 41 1.57 .26 44.12 Walgreen Co. engages in the retail sale of prescription and nonprescription drugs, and general merchandise, through a drugstore chain in the United States. It is the nation’s largest drugstore chain by sales. General merchandise includes cosmetics, toiletries, householdRead MoreExternal Environmental Scan of Walgreens Drugstores1116 Words   |  4 PagesExternal environmental scan of Walgreens drugstores Walgreens was founded in the year 1901 in Chicago, Illinois and is currently the largest drug retailing chain in the US. As of the 31st of January 2012, the company had more than 8,300 stores across all 50 states of the US. The company provides access to consumer goods and services as well as pharmaceutical, health and wellness products and services. Current economic trends There are many challenges that face Walgreens in the industry it operatesRead MoreWalgreens Co. Swot Analysis Essay2452 Words   |  10 PagesWalgreens Company SWOT Analysis Melanie Garces MGT/521 July 16, 2012 Kirk Davis Abstract This paper will provide insight into the strengths, weaknesses, opportunities, and threats of the Walgreens Company, the nation’s leading drugstore chain. The company’s key stakeholders – customers, employees and the community are also identified and an explanation provided as to how the company is satisfying the needs and wants of each stakeholder type. This paper analyzes the strengths of the companyRead MoreWalgreens3673 Words   |  15 PagesWalgreens Co – Progress Report 1 Company Background: A) What is the ticker symbol of your company? Identify the stock exchange(s) where your company stock trades. The corporate name of the Walgreens drugstore chain is Walgreens Co, as identified on Form 10-5 (SEC Filing). The company is traded in the NYSE under the ticker symbol ‘WAG’. B) Read the auditor’s report included in the annual report of the company and explain its purpose. Identify the name of the auditing firm. Walgreen’sRead MoreWalgreens Strategic Analysis2645 Words   |  11 PagesWashington 0180175 Walgreens Pharmacy (WAG) An Industry Leader at the Inflection Point The following report is an in-depth discussion of Walgreens Pharmacy with an analysis and assessment of the company’s strategic initiatives. Each strategy yields a direct purpose of diminishing the influence of a specific force from Porter’s 5-force Model as the supporting data culminates an outlook on the company’s future. COMPANY OVERVIEW Charles Walgreen of Chicago, Illinois, pioneeredRead MoreEvaluation of Walgreens Company5992 Words   |  24 PagesWalgreens CO. | EVALUATION OF WALGREENS CO. | Managerial finance project | | Contents Walgreens CEO 1 The board of directors 2 How much trading volume is there on the stock? 4 Does the firm has any has publicly traded debt? 4 Societal constraint 4 Liquidity ratios 4 Overall risk of company 8 Marginal investors in the company 9 Estimate the default risk and cost of debt of your company 9 Weights of debt and equity 10 Regression 10 WACC and CAPM 11 EvaluatingRead MoreEssay about Walgreens; Financial Statement Analysts2248 Words   |  9 PagesExecutive Summary Walgreens offers an old-fashioned tonic for fiscal fitness: quality over quantity and homespun growth rather than growth through acquisitions. It works. While Walgreen has fewer stores than its closest rival CVS, it is #1 in the nation in sales. (Hoovers Inc, 2007) Walgreens operates about 6,000 stores in 49 states and Puerto Rico, and has three mail order facilities. Prescription drugs account for 65% of sales; the rest comes from general merchandise, over-the-counter medicationsRead MoreWalgreen Versus Cvs Essay6549 Words   |  27 Pagesinitial 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