Accounting Finance Homework

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AF 210 Fall 2018

Financial Statement Analysis Project

CVS HEALTH Corp

First Name Last Name

__________________ __________________

__________________ __________________

__________________ __________________

This project is designed to familiarize you with the Annual Report and Financial

Statements of a company called CVS health Corporation. The webpage of the

company is always a good place to start when you are looking for information. If the

stock is publicly traded it usually has a link for investors and sometimes you can find a

link there to recent financial statements.

Otherwise, Edgar is the place to find all the filings that a company has made with the

SEC. This is the website address:

http://www.sec.gov/edgar.shtml

Follow these steps:

1. Search for company filings then,

2. Search information collected by the SEC by Company or fund name, ticker

symbol, etc.

3. Company name CVS HEALTH Corp, Ticker Symbol CVS CIK 0000064803

4. Go to the most recent Form 10-K, filed with the SEC for the fiscal year ended

Dec. 31, 2017 (available around 02/14/2018)

Please answer the questions in the following pages relating to the 10-K of CVS HEALTH

Corp..

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A. What is the title of the Form 10-K document (just below the Form 10-K line)?

B. What date was the 10-K filed with the SEC?

C. What business is CVS health in?

D. What depreciation method does CVS health use?

E. List four acquisition activities the CVS health did in the past 5 years.

F. Who is the auditor for CVS health’s in 2017? What is the auditor’s opinion about

the company’s 2017 consolidated financial statements? To whom the auditor’s report is

addressed?

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G. What inventory costing method does CVS health’ use for most of its

inventories?

H. What is the activity in the allowance for doubtful accounts receivable for

the years ended December 31?

Go the financial statements:

I. 1. What is CVS health’s Financial Leverage Ratio for 2017?

2. What does this ratio tell us about the amount of debt that is used by the

company?

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J. 1. What is CVS health’s Accounts Receivable Turnover Ratio for 2017?

2. What does this ratio measure?

3. How would you go about determining whether this ratio reflects strong or

weak performance for this company?

K. 1. What is CVS health’s Net Profit Margin for 2017, 2016, and 2015?

2017____________

2016____________

2015____________

2. What does the Net Profit Margin measure?

3. How is CVS health’s performance on this measure in 2017 relative to

2016 and 2015 (better or worse)?

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L. 1. What is CVS health’s Return on Assets (ROA) for 2017?

2. What does ROA measure?

3. If you could take a look at another company’s ROA to compare to CVS,

what company would you choose? Why?

M. 1. What is CVS health’s quick ratio for 2017, 2016, and 2015?

2017____________

2016____________

2015____________

2. What does this ratio measure?

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3. How is CVS health’s 2017 performance on this measure relative to 2016?

N. 1. What are CVS health’s diluted earnings per common share for 2017, 2016,

and 2015?

2017____________

2016____________

2015____________

2. Has there been a good or poor trend in this measure? Explain.