C6. BuSIneSS applICatIon ▶ Refer to the annual report of CVS Corporation and the financial statements of Southwest Airlines in the Supplement to Chapter 1. Calculate for 2011 and 2010 each company’s cash flow yield, cash flows to sales, cash flows to assets, and free cash flow. (Round to one decimal place or to the nearest tenth of a percent.) At the end of 2009, Southwest’s total assets were $14,269 million and CVS’s total assets were $61,641 million.
Discuss and compare the trends of the cash-generating ability of CVS and South- west. Comment on each company’s change in cash and cash equivalents over the two- year period.