are that Walgreens: One year Return on Equity is 49 % higher than the industry average, which may indicate that Walgreens has turned shareholders' equity into profits much better than its competitors have. One year Return on Assets is 128 % higher than the industry average, which may indicate that Walgreens has used its assets much better than its competitors have. One year Return on Invested Capital is 148.61% higher than the industry average, which may indicate that Walgreens has made very good use of its debt and equity capital.All of these points indicate that Walgreens is a strongly managed company with better than average return on invested funds (Market Guide 2000).Product InnovationWalgreens has been able to take the drugstore concept well beyond only selling drugs. They learned that Americans are willing to pay for products or services that make their lives easier. This philosophy is evident in every aspect of their business: site location, building design, product inventory and point-of-sale technology that is focused on helping time-starved customers find what they want and need and get out.In 1991 Walgreens pioneered the drive-thru pharmacy. Now more than fifty percent of the stores offer this convenience. They also led the way out of strip centers into freestanding stores and now operate 620 of these stores 24-hours per day (Walgreens 1999 Annual Report).HistoryWalgreens has a long history of financial success. The company has gained prescription market share in all but one of its leading 50 markets within the last 5 years. In August of 1999, the Chicago-based Walgreen, the largest U.S. retail drugstore chain in terms of revenues and profitability, posted its 26th consecutive year of record sales and earnings. Sales increased 17 percent in fiscal 1999, to $17.8 billion. Earnings before special items advanced 22 percent, to $624 million. In 1909, the company’s founder, Charles Rudolph W...
