The increase is vaguely from one year to the next, however one may consider this a yo yo effect as CVS proceeds to elevate from 2012 to 2013 then regress once again in 2014. I would like to point out though, during 2011 the ROA was at the lowest point during 2010-2014. The net income did in fact increase from 2010-2011, however, there sales significantly increase during this time period. One would conclude that this reason would indicate why their margins are at a lower point, which is indicative that the costs of products may rise due to CVS’s expansions in the market. Perhaps, with CVS and Walgreens supplying the market the same type of products their margins are relatively equal.
1. How does CVS’s ROA compare to Walgreens and to the industry?
1. How does CVS’s ROA compare to Walgreens and to the industry?