Walgreens Fiancial Analysis

2167 Words Feb 28th, 2013 9 Pages
Walgreens Corporations Financial Analysis
Introduction
Walgreens operates 7,907 locations in 50 states, the District of Columbia, Guam and Puerto Rico with over 247,000 employees serving customers. The company has seen an increase in revenues, but an end to its contract to participate in the Express Scripts pharmacy provider network on December 31, 2011 poses a threat to revenues and profits for 2012 and future fiscal periods. This analysis will discuss Walgreen’s business strategy, provide a current financial analysis of the company, risks associated with the company, address prospective analysis of Walgreens and provide a decision on future investments in the company stock.
Business Strategy Analysis
A differentiation strategy
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The negative outlook also acknowledges the sizable level of debt maturities that Alliance Boots which is the largest drugstore in United Kingdom faces and that its interest expense may rise as a result of any potential refinancing of these maturities. This negative outlook shows the risk that both combined Walgreen and Alliance Boots entities may not be able keep the companies leverage as much as the companies currently anticipated (Taylor, M. 2012).
Walgreens 8-K currently filed by Gregory Wasson who is the President and CEO of Walgreens filed a Statement of Change in Benefits Ownership pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public and the Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940 financial statements that would indicate that the financial statements may be of dubious value (Wasson, G. 2012). Schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. Under the Investor Relation of company’s 8-K filing, the Company agreed to furnish supple-mentally to the SEC a copy of any omitted schedule upon request (Wasson, G. 2012). The above responses were reported by Walgreens to the Securities Exchange Commission on August 18 2012:
Explanation of Responses:
• This transaction was effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person in