Assignment 1: Annual Report Project
Professor Rakesh Arora
Strayer University-ACC 100
August 25, 2012
CVS Caremark Corporation is the largest pharmacy health care provider in the United States based on revenues and prescriptions filled. The company currently has three reportable business segments; Pharmacy Services, Retail Pharmacy and Corporate. Their Pharmacy Services business provides pharmacy benefit management services. The Retail Pharmacy segment sells prescription drugs and a wide assortment of general merchandise, including over-the –counter drugs, beauty products and cosmetics, photo finishing, seasonal merchandise, greeting cards and convenience foods. The Corporate segment provides management and administrative services to support the company.
1. Identify and explain the main sections of the annual report.
The main sections of CVS Caremark’s annual report of 2011 are as follows:
-Financial Highlights (page 2): Financial items such as net revenues, operating profit, net income, diluted EPS from continuing operations, stock price at year end, and market capitalization at year end are presented for the current year and the previous year.
-Letter to the Shareholders (page 3): describes accomplishments such as revenue growth and Minute Clinic reaching break even profitability at year end. Also describes challenges and opportunities offered by the current health care landscape. Future plans and prospects are also included in the letter, which is signed by Larry J. Marko, President and CEO of the company.
-Management Discussion and Analysis (page 22): This segment contains an overview of the business, and results in operations during the years of 2009-2011 focusing on net revenues, gross profit and operation profit in all three segments of the company. This is followed by liquidity analysis and capital recourses to cover short term cash needs and description of critical accounting policies.
-Management’s Report on...