Financial Research Report

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Running Head:Financial Research Report1Financial Research ReportBased on the provided overview of CVS Caremark Corporation, analyze the company's currentbusiness model, growth strategy, and market positioning. In your analysis, include a discussionon its corporate structure, key acquisitions, and community initiatives. Additionally, provide arationale for why CVS Caremark Corporation would be a suitable investment for medium tolong-term investors. Finally, suggest a set of financial ratios that could be used to assess thefinancial health and performance of the company.Word Count Requirement: 1,000-1,500 words.

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Running Head:Financial Research Report2CVS Caremark Corporation-OverviewCVS Caremark isthe largest integrated pharmacy company in the United States ofAmerica with a mission of helping people to achieve better health. As of 2013 the company hadoverseven thousand four hundredCVS/pharmacy stores spread throughoutall the states oftheUnited States of America. The company alsooperatedmore thansix hundredMinute Clinicsunder it retail health clinic system. Other productlines that the company offers to its targetmarketincludes; Medicare Part D Prescription drug plans, retailhealth clinic systems andmailorder,retail and specialtypharmacy(Lofberg & McCrossan, 2010).The company leads inpharmacy innovationdue to its capabilities that are unmatched in its industryandalsopridesitself as the only company that continually strives to improve health in the country.Thecompany through its Pharmacy Advisor program strives to improve health and lower cost ofhealth care by developing new approaches that help people deal with difficult diseases such ascancer and diabetes. This it does by enabling these patients to obtain and stay on theirmedications which enables them to live as long as possible while leading productive lives.CVSCaremark thus continues to lead in the United States of America as the largest provider ofprescriptions(Lofberg & McCrossan, 2010). The number of prescriptions that the companymanages or fills exceeds one billion annually. The company is viewed by many industry expertsand analysts as leading in the transformation of health care service delivery in the United Statesof America through its breadth of service offerings which are unmatched. The company alsooperates an online pharmacy whose universal resource locator isCVS.com(Lofberg &McCrossan, 2010).

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Running Head:Financial Research Report3The company’s headquartersare found in two locations. The first being inWoonsocketinRhode Islandandthe second which overseasits pharmacy servicesbusiness beingheadquartered inNashville inTennesseein the United States of America.The company madeit into the Fortune 500 magazine in 2013 where it climbed to number thirteen in the list of thelargest corporations in the United States of America. The company is also the largest companythat has its operations within the borders of the United States of America(Business Wire, 2007).The company’s business is organized mainly into three operating segments or divisions namelythe walk in clinic otherwise known as Minute Clinic of which it operates over six hundred ofsuch and operates them withinCVS/pharmacystores,Caremark Pharmacy ServicesandCVSPharmacybusiness segment(Boyle, 2009).CVS pharmacy is noted as contributing one in everyseven prescriptions to patients in the United States of America and contributes over sixty eightpercent of CVS pharmacy revenues from the pharmacy business alone. The corporation divisionofCVS Caremark Pharmacy Servicesis renown asa leader inpharmacy benefit management(PBM) companiesas it offersmore than over 2,000 health plansprescription benefitmanagement serviceswhich are said to be comprehensive to leading corporations andgovernment entities. The company provides top of the range customer service through its moderncall centers.Rationale for investing inCVS Caremark CorporationCVS Caremark Corporationis one oftheleading integrated pharmacy businessesin the United States of America.By investing in the company’sstock, bonds, commercial paperetcthe investor will own part of thelargest companies in the United States of America accordingto Fortune Magazine of 2013. This ranking hasmonumental benefits which include the fact thatthe company is able to access cheaper financing because of its reputation. Its products will sell

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Running Head:Financial Research Report4with minimal effort as most people will want to own something that is made by thelargestcompany in the United States of America. The companyfallsin the radar of numerous regulatoryauthorities, national administrators and watchdogs which ensure it adopts sound reportingstandards and other best practicebenchmarks whichensureit maintains its position as one of thelargest companies in the United States of America.The other rationale of investing inCVSCaremark Corporation is that this company is publicly quoted inone or more ofthe leadingsecurities exchange bourses in the United States of America. The company therefore abides bythe disclosure rules required of publicly quoted companies which include adhering to financialreporting guidelines and corporate governance requirements. The company therefore has soundmanagement practices and qualified management personnelwhichwillprotectmyinvestor’sinvestment in the company and ensure it grows over time.The other reason as to why this is the best investment vehicle for my prudent investor isthatCVSCaremarkhas built a formidable distribution network that enables it to reach its customerseffectively and with minimal effort and expense. The company currently has overseventhousand fourhundred andfiftyeight stores locatedin all the states in the United States ofAmerica.The company was founded in 2007 through amerger of the two companies ofCaremark andCVS Pharmacywhich originated the name CVS Caremark Corporation; a mergerthat was approved by the shareholders of both companies.The company is involved incommunity initiatives where CVS/Pharmacy storesarelocated.The companythroughCVSCaremark CharitableTrustisinvolved in education and health care activities in thecommunities it operates in(Biotech Business Week, 2007). The company through CVSSamaritanVansprovidesfree roadside assistance to motoristsin many cities throughout theUnited States of America. These vans are essentially “emergency response vehicles"which

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