Comparison Analysis: Performance Measures and Financial Statements
Business Application Refer to the CVS annual report and the financial statements of Southwest Airlines Co. in the Supplement to answer the questions that follow.
1. Which company is larger in terms of assets and in terms of revenues? What do you think is the best way to measure the size of a company?
2. Which company is more profitable in terms of net income? What is the trend of profitability over the past three years for both companies?
3. Which company has more cash? Which increased its cash the most in the last year? Which has more liquidity as measured by cash flows from operating activities?