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Risk level and valuation of CVS

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1. (CVS Income Statement) Analyze tends in revenues, cost and expenses, net income, and earnings per share for the last 2 years.
2. (CVS Balance Sheet) What are the major assets, liabilities and equities? Do the company appear to be growing. How is it primarily financed (debt or equity)?
3. (CVS Cash Flow Statement) Analyze each of the 3 major sections of the statement . What are the key sources and uses of funds overall for the most recent year for each section. Is cash flow positive or negative for each section and overall? Is it improving or deteriorating over time for each section and overall.
4. Compute Ratios for CVS year 2012, and 2011 and compare to industry average. How is the company performing in terms of liquidity, asset management, debt management, and profitability. http://www.reuters.com/finance/stocks/financialHighlights?symbol=CVS.N or see attached CVS financial document from reuters.com
5. Assess the risk level and valuation of CVS, it is wise to invent in this company why or why not.
6. What recommendations would you make to CVS chief financial officer.

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CVS Financial Analyze
1. (CVS Income Statement) Analyze tends in revenues, cost and expenses, net income, and earnings per share for the last 2 years.

Income statement indicates the profitability of the organization, balance sheet tells about the solvency of the organization, statement of shareholder's equity indicates about the equity position of the organization and cash flow statement tells about the liquidity position of the organization.

Analysis:
Revenues: There is a moderate growth in sales in 2013 at 5% and moderate growth in last 5 years at 10%.
EPS: There is an excellent growth in EPS last year at 29% and moderate growth in last 5 years at 10%.
Net Profit: There is an increase in profitability in last two years.
Costs and expenses: There is an increase in profitability in last two years and the increase is more than increase in profits.

http://www.stock-analysis-on.net/NYSE/Company/CVS-Caremark-Corp/Financial-Statement/Income-Statement

2. (CVS Balance Sheet) What are the major assets, liabilities and equities? Do the company appear to be growing. How is it primarily financed (debt or equity)?

Major Assets in 2012 are:
Current Assets : $19.85 billion
Non Current Assets: $46 billion
CVS Caremark Corp.'s current assets increased from 2010 to 2011 and from 2011 to 2012.
CVS Caremark Corp.'s total assets increased from 2010 to 2011 and from 2011 to 2012.
The above shows that there is growth in the firm as its assets are growing moderately.

Major Liabilities in 2012 are:
Current Liabilities are: $13.7 billion.
Non Current Liabilities are: $14.4 billion.
Equity are: $37 billion.

It is primarily financed by Equity.

http://www.stock-analysis-on.net/NYSE/Company/CVS-Caremark-Corp/Financial-Statement/Assets
http://www.stock-analysis-on.net/NYSE/Company/CVS-Caremark-Corp/Financial-Statement/Liabilities-and-Stockholders-Equity

3. (CVS Cash Flow Statement) Analyze each of the 3 major sections of the statement . What are the key ...

Solution Summary

The solution discusses the risk level and valuation of CVS. The industry averages are computed.

$2.19