ANNUAL REPORT QUESTIONS

ANNUAL REPORT QUESTIONS

Your task is to analyze the annual report and answering the following question

Your task is to analyze the annual report 2017 of CVS company in the USA by answering the following question. And attach the annual report as PDF file.

Company: CVS Competitor: Walgreens

  1. What were your company’s sales during the last year? Are they growing, declining, or flat? What do you think about this growth picture?
  2. What is your company’s gross marginal? Is it growing, declining, or flat?
  3. How does your margin compare with competitors’ margins?
  4. Do you know your company’s inventory velocity?
  5. Do you know your company’s accounts receivables?
  6. Who are your company’s largest customers?
  7. What is your company’s return on invested capital?
  8. Is your company’s cash generation increasing or decreasing? Why is it going one way or the other?
  9. Is your company gaining or losing against the competition in terms of market share, profitability, and the like?

Cut Through

  1. Is there excess capacity in the industry?
  2. Is the industry consolidation?
  3. Do you face stiff price competition?
  4. Might your business be affected by currency fluctuations or changes in interest rates (up or down)?
  5. Are you facing new competitors?
  6. Where is innovation coming from?
  7. What is happening in e-commerce? How might the affect the company?

All Answer:

Answer preview

Company: CVS Competitor: Walgreens

  1. The company sales for last year is $ 184,765 compared to $ 177,526 in 2016 and $ 153,290 in 2015. This is a continuous increase in the total revenue earned. The revenue earned in the company has increased continually although at different rates.
  2. The gross margin is 4.6% compared to 4.9% in 2016 and 5.2% in 2015 indicating there is a continuous decline in the company gross marginal. This means that there is a constant increase in the cost of revenue.

The gross margins for the competitors are high. The competitors margins are 24.7% in 2017, 25.5%  in 2016 and  25.9% in 2015. In all the last three years the gross margins for the competitors are …

(1000 words)

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