What Is Walgreens Annual Report
The Financial Reporting Project
ACCT 1201: Financial Accounting and Reporting
Kevin Kang
Chris Laughlin
Anthony Mele
Ricardo Ortiz
Progress Report 1
Walgreens Co.
Annual Report: 2012
Company Background
A. The ticker for Walgreens Co. is WAG. Walgreens trades its stock in the New York Stock Exchange (NYSE).
B. The auditor’s report included with the annual report is a statement from an external entity, explaining that after careful review of the balance sheets, cash flow statements and all financial statements included in the annual report are accurate. In addition, it ensures that Walgreens has prepared their financial statements in accordance with all the generally accepted accounting principles …show more content…
Walgreens, Co. is the largest drug store chain in the United States. It provides pharmacy services in addition to medical supplies, home needs, convenience goods and cosmetics. It sells a wide range of products from over the counter medicine, foods, cosmetics, supplements and vitamins, soaps and a multitude of other goods. The major service of the company is the pharmacy, for which Walgreens, Co. is most notable. Major competitors include Rite-Aid and CVS pharmacies.
D. Closing Price for Walgreens, Co. (WAG) Friday March 1, 2013: $41.32
Developments relating to the Company
A. The demand for the products provided at Walgreens is inelastic. Walgreens offers a number of medical products and the pharmacy service, which is a growing industry in itself. Until another system of delivering medicine to those to whom it is prescribed, a pharmacy will always have demand. The other goods such as cosmetics have an elastic demand, however demand in the past few years has been constant enough to expand that department.
B. The growth of the mobile technology industry has opened the door for a personalized customer service experience. Each customer can now access their rewards information, coupons and now check the status of their order at the pharmacy. This is a major stepping-stone for the company and an advantage over its current competitors.
Understanding the Annual Report and …show more content…
The inventory turnover ratio for the fiscal year ending on August 31, 2013 (in millions $) was 10.54. This ratio was calculated using the net sales of $72,217 and dividing it by the inventories of $6,852 (both in millions $). Similarly, the turnover ratio for the fiscal year ending on August 31, 2012 was 10.18. According to the data, the inventory turnover ratio for Walgreens has experienced an increase each fiscal year for the past three years. There are several reasons for why this may be occurring. It could be that Walgreens has implemented a stronger sales approach, such as a boost in advertising or through more appealing store infrastructure. Its inventory turnover ratio fluctuated between the fiscal year ending in August 8, 2008 and 2011 with ratios of 8.14, 9.33, 9.14, and 8.97; but perhaps the company decided to step up operations for 2012, when it saw that the overall industry had a steady increase in the ratio at 10.71 (2008), 10.86 (2009), 10.95 (2010), 11.06 (2011), and 11.13 (2012), respectively
ACCT 1201: Financial Accounting and Reporting
Kevin Kang
Chris Laughlin
Anthony Mele
Ricardo Ortiz
Progress Report 1
Walgreens Co.
Annual Report: 2012
Company Background
A. The ticker for Walgreens Co. is WAG. Walgreens trades its stock in the New York Stock Exchange (NYSE).
B. The auditor’s report included with the annual report is a statement from an external entity, explaining that after careful review of the balance sheets, cash flow statements and all financial statements included in the annual report are accurate. In addition, it ensures that Walgreens has prepared their financial statements in accordance with all the generally accepted accounting principles …show more content…
Walgreens, Co. is the largest drug store chain in the United States. It provides pharmacy services in addition to medical supplies, home needs, convenience goods and cosmetics. It sells a wide range of products from over the counter medicine, foods, cosmetics, supplements and vitamins, soaps and a multitude of other goods. The major service of the company is the pharmacy, for which Walgreens, Co. is most notable. Major competitors include Rite-Aid and CVS pharmacies.
D. Closing Price for Walgreens, Co. (WAG) Friday March 1, 2013: $41.32
Developments relating to the Company
A. The demand for the products provided at Walgreens is inelastic. Walgreens offers a number of medical products and the pharmacy service, which is a growing industry in itself. Until another system of delivering medicine to those to whom it is prescribed, a pharmacy will always have demand. The other goods such as cosmetics have an elastic demand, however demand in the past few years has been constant enough to expand that department.
B. The growth of the mobile technology industry has opened the door for a personalized customer service experience. Each customer can now access their rewards information, coupons and now check the status of their order at the pharmacy. This is a major stepping-stone for the company and an advantage over its current competitors.
Understanding the Annual Report and …show more content…
The inventory turnover ratio for the fiscal year ending on August 31, 2013 (in millions $) was 10.54. This ratio was calculated using the net sales of $72,217 and dividing it by the inventories of $6,852 (both in millions $). Similarly, the turnover ratio for the fiscal year ending on August 31, 2012 was 10.18. According to the data, the inventory turnover ratio for Walgreens has experienced an increase each fiscal year for the past three years. There are several reasons for why this may be occurring. It could be that Walgreens has implemented a stronger sales approach, such as a boost in advertising or through more appealing store infrastructure. Its inventory turnover ratio fluctuated between the fiscal year ending in August 8, 2008 and 2011 with ratios of 8.14, 9.33, 9.14, and 8.97; but perhaps the company decided to step up operations for 2012, when it saw that the overall industry had a steady increase in the ratio at 10.71 (2008), 10.86 (2009), 10.95 (2010), 11.06 (2011), and 11.13 (2012), respectively