Rite Aid company evaluation Zachary Whitson

Company Information

  • Ticker Symbol: RAD
  • Retail (Drugstore) Industry
  • Market shares: Walgreens- 28.6%, CVS- 21.7%, Rite Aid- 11.6%
  • Other competitors: Walmart, other independent pharmacies

Products/Services offered

  • Prescription medicine- 69.1% of sales
  • Over the counter medication- 9.8%
  • Health and Beauty supplies- 4.8%
  • Other general merchandise- 16.3%

Liquidity Ratios

Current Ratio

  • Rite Aid = 1.52, Walgreens = 1.52, CVS = 1.31

Quick Ratio

  • Rite Aid = 0.62, Walgreens = 0.99, CVS = 0.71

Leverage Ratios

Debt-to-Total-Assets

  • Rite Aid = 0.95, Walgreens = 0.58, CVS = 0.60

Times-Interest-Earned

  • Rite Aid = 1.62, Walgreens = 10.07, CVS = 11.28

Activity Ratios

Inventory Turnover

  • Rite Aid = 11.02, Walgreens = 13.31, CVS = 11.82

Total Assets Turnover

  • Rite Aid = 3.07, Walgreens = 1.66, CVS = 1.83

Profitability Ratios

Gross profit margin

  • Rite Aid = 25.46%, Walgreens = 25.46%, CVS = 17.31%

Operating profit margin

  • Rite Aid = 6.17%, Walgreens = 5.11%, CVS = 6.17%

Return on Total Assets

  • Rite Aid = 1.47, Walgreens = 5.74, CVS = 5.59

Horizontal Analysis

Revenue: 2014-2015 increased 3.93%, 2015-2016 increased 15.86%

Assets: 2014-2015 increased 28.48%, 2015-2016 increased 26.39%

Liabilities: 2014-2015 decreased 3.73%, 2015-2016 increased 22.65%

Stockholder's Equity: 2014-2015 increased 102.70%, 2015-2016 increased 919.05%

Opportunities for Improvement

  • Acquisitions/mergers
  • More financing more through equity
  • Better customer service

Credits:

Created with images by JeepersMedia - "Rite Aid Pharmacy, Bloomfield CT. 7/2014 Pics by Mike Mozart of TheToyChannel and JeepersMedia on YouTube. #RiteAid #RiteAidPharmacy" • angelorosa - "pharmacy pharmacist chemical" • angelorosa - "pharmacy pharmacist chemical" • JeepersMedia - "Rite Aid" • jarmoluk - "document agreement documents" • jarmoluk - "document agreement documents" • Yuya Tamai - "2012-11-21 11.48.27" • Yuya Tamai - "2012-11-21 11.48.27"

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