Problem: Using the most current financial statements for Walgreens, calculate and compare the financial ratios listed below. The financial statements can be located on the web.
Liquidity Measures- Working capital, Current ratio, Acid test ratio
Activity Measures- Total asset turnover, Inventory turnover
Profitability Measures- Gross profit rate, Profit margin rate, Return on investment, Return on equity, Earnings per share
Financial Leverage Measures- Debt ratio, Debt/equity ratio, Times interest earned ratio
Cite strengths and weaknesses of ratios.