Case Study Walgreens

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Profitability is a major part of a company’s success. If they are not making money, they are losing it. CVS net profit margin and gross profit percentage for the past two years has fallen behind Walgreens. This is a major red flag when deciding which company to invest in. If one company is clearly making more money than another right now in the present, then one would want to invest in the better performing country. For both companies, the debit to asset ratio decreased over time. For both years though, Walgreens had less liabilities compared to assets. In the long term this is good. A company needs to be able to have little debt and something to fall back on such as assets when times are tough. This shows solvency, the capability of a business

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