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

Running Head: Financial Research Report 2
CVS Caremark Corporation-Overview
CVS Caremark is the largest integrated pharmacy company in the United States of
America with a mission of helping people to achieve better health. As of 2013 the company had
over seven thousand four hundred CVS/pharmacy stores spread throughout all the states of the
United States of America. The company also operated more than six hundred Minute Clinics
under it retail health clinic system. Other product lines that the company offers to its target
market includes; Medicare Part D Prescription drug plans, retail health clinic systems and mail
order, retail and specialty pharmacy (Lofberg & McCrossan, 2010). The company leads in
pharmacy innovation due to its capabilities that are unmatched in its industry and also prides
itself as the only company that continually strives to improve health in the country. The
company through its Pharmacy Advisor program strives to improve health and lower cost of
health care by developing new approaches that help people deal with difficult diseases such as
cancer and diabetes. This it does by enabling these patients to obtain and stay on their
medications which enables them to live as long as possible while leading productive lives. CVS
Caremark thus continues to lead in the United States of America as the largest provider of
prescriptions (Lofberg & McCrossan, 2010). The number of prescriptions that the company
manages or fills exceeds one billion annually. The company is viewed by many industry experts
and analysts as leading in the transformation of health care service delivery in the United States
of America through its breadth of service offerings which are unmatched. The company also
operates an online pharmacy whose universal resource locator is CVS.com (Lofberg &
McCrossan, 2010).

Running Head: Financial Research Report 3
The company’s headquarters are found in two locations. The first being in Woonsocket in
Rhode Island and the second which overseas its pharmacy services business being
headquartered in Nashville in Tennessee in the United States of America. The company made
it into the Fortune 500 magazine in 2013 where it climbed to number thirteen in the list of the
largest corporations in the United States of America. The company is also the largest company
that 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 namely
the walk in clinic otherwise known as Minute Clinic of which it operates over six hundred of
such and operates them within CVS/pharmacy stores, Caremark Pharmacy Services and CVS
Pharmacy business segment (Boyle, 2009). CVS pharmacy is noted as contributing one in every
seven prescriptions to patients in the United States of America and contributes over sixty eight
percent of CVS pharmacy revenues from the pharmacy business alone. The corporation division
of CVS Caremark Pharmacy Services is renown as a leader in pharmacy benefit management
(PBM) companies as it offers more than over 2,000 health plans prescription benefit
management services which are said to be comprehensive to leading corporations and
government entities. The company provides top of the range customer service through its modern
call centers.
Rationale for investing in CVS Caremark Corporation
CVS Caremark Corporation is one of the leading integrated pharmacy businesses
in the United States of America. By investing in the company’s stock, bonds, commercial paper
etc the investor will own part of the largest companies in the United States of America according
to Fortune Magazine of 2013. This ranking has monumental benefits which include the fact that
the company is able to access cheaper financing because of its reputation. Its products will sell

Running Head: Financial Research Report 4
with minimal effort as most people will want to own something that is made by the largest
company in the United States of America. The company falls in the radar of numerous regulatory
authorities, national administrators and watchdogs which ensure it adopts sound reporting
standards and other best practice benchmarks which ensure it maintains its position as one of the
largest companies in the United States of America. The other rationale of investing in CVS
Caremark Corporation is that this company is publicly quoted in one or more of the leading
securities exchange bourses in the United States of America. The company therefore abides by
the disclosure rules required of publicly quoted companies which include adhering to financial
reporting guidelines and corporate governance requirements. The company therefore has sound
management practices and qualified management personnel which will protect my investor’s
investment 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 is that
CVS Caremark has built a formidable distribution network that enables it to reach its customers
effectively and with minimal effort and expense. The company currently has over seven
thousand four hundred and fifty eight stores located in all the states in the United States of
America. The company was founded in 2007 through a merger of the two companies of
Caremark and CVS Pharmacy which originated the name CVS Caremark Corporation; a merger
that was approved by the shareholders of both companies. The company is involved in
community initiatives where CVS/Pharmacy stores are located. The company through CVS
Caremark Charitable Trust is involved in education and health care activities in the
communities it operates in (Biotech Business Week, 2007). The company through CVS
Samaritan Vans provides free roadside assistance to motorists in many cities throughout the
United States of America. These vans are essentially “emergency response vehicles" which

Financial Research Report

Study Now!

Document Details

Related Documents

Essentials of Risk Management

Business and Financial Risks

CEO pay at John Deere and Caterpillar

International Financial Management

Stock Trak Investments Week 4

Financial Statement Analysis

WACC Project Verizon Communication Inc

Financial Planning and Budget Analysis

Efficiency Test in US Stock Market

Financial Analysis - GE1

Company

Explore

Study Tools