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Outline 2 Page of A Financial Analysis of Walgreen in The Competitive Pharmacy Marketplace1
Outline 2 Page of A Financial Analysis of Walgreen in The Competitive Pharmacy Marketplace1
Walgreen's main competitors are CVS Caremark and Rite Aid. Walgreen and CVS together have more than 15,500 stores in all 50 statesand the District of Columbia. Rite Aid has about 4,650 stores in 31 states and is building momentum as a top competitor. Walgreen's past three year trend analysis shows a decline in 2012 compared to 2011. The Peer Group Analysis shows Walgreen as a leader but its competitors are gaining momentum.
Peer-Group Analysis
The groups of financial ratios analyzed were the liquidity, asset efficiency, profitability, leverage, and market value ratios. The current ratio of Rite Aid is higher than CVS and Walgreen for 2012. Rite Aid had a higher debt ratio and negative debt to equity ratio compared to Walgreen and CVS. The profitability ratios indicates variability between all three companies. Fiscal year 2013 was the first year that Rite Aid showed improvement of their net income. Walgreen and CVS demonstrated substantial earnings per share and return on total equity. The peer group analysis supports the rankings assigned to these three peers in the retail pharmacy and drugstore chain.