Sunday, June 9, 2019
CVS Caremark Company`s Finantial results Research Paper
CVS Caremark Companys Finantial results - Research Paper ExampleSimilar cast ups and trends were seen in the clams income of the company where a decrees was seen in year 2010 as compared to year 2009 followed by an increase in year 2011 where the account net income was $3,461 million. The companys debt to integrity ratio in 2011 can be calculated as 24% which is reasonable when compared to industry fair(a) of 25% which means company have balance organise of finance and is doing well. The current ratio of the company for year 2011 is 1.5 as compared to industry ratio of 1.6. The company is doing well when it comes to its liquidity position and seems to have complete cash resources cash dividends were also increased from 35 cents/share in 2010 to 50 cents/share in 2011. Further all the positivity in the pecuniary results were reflected in an increase in the stock price of the company too which increased from $34.77 to $40.78 in year 2011 with an increase of 17.3%. The EPS of th e company has also improved from $ 2.49 in 2010 to $ 2.59 in 2011 with an increase of 4%. Overall the company has a operose financial position with growth and stability in the company. (CVS Caremark. Annual history 2011) Coinstar Inc. pecuniary Results Coinstar Inc. ... s recorded revenue in year 2009 was $1,032 million, in year 2010 it increased to $1,436 million where an increase of 39% was seen and in year 2011 these results were increased to $1,845 million, with an increase of 28%. Similar increases and trends were seen in the net income of the company where an increase was seen in year 2010 as compared to year 2009 followed by an increase in year 2011 where the reported net income was $103 million. The companys debt to equity ratio in 2011 can be calculated as 68% which is almost double when compared to industry average of 38% which means company relies too much on debt as a source of finance and doesnt have a balanced structure of finance. The current ratio of the company f or year 2011 is 1 as compared to industry ratio of 2. The company seems to have major cash flow issues which are clear from the non-payment of dividends and the increased debt to equity ratio which means the company is paying heavy finance costs. Overall the company is profitable but seems to have some concerning areas standardised cash flow issues due to using debt as source finance. (Coinstar Inc. Annual Report 2011) The CVS Company is a huge company as compared to Coinstar. The CVS has a strong financial status with billions of dollars of sales and large scale of operation while the Coinstar though has a lot of presence in many countries is also a profitable business. The revenues and reporting profits of both the companies are growing and it is always a wise idea to acquire a company with increasing revenues as is seen in Coinstar. The revenues of Coinstar are in much higher increasing trends as compared to CVS Company which shows the company has a lot of potential to grow sal es. (Coinstar Inc. Annual Report 2011) Both the companies CVS and Coinstar are
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