Caremark said it has changed its fiscal year to coincide with the calendar year, starting last Jan. 1. The company's fiscal year previously ended in June.
James M. Sweeney, chairman and chief executive officer of the Newport Beach health-care company, said the change was made to stabilize the company's 1987 federal income tax rate by bringing the entire fiscal year under terms of the new federal tax laws, which lower the maximum corporate tax rate.
Additionally, he said, the change will make Caremark's fiscal year comparable to other companies in the health-care industry.
"Because we are such a rapidly growing company, we sometimes suffer in earnings comparisons with other companies whose fiscal year coincides with the calendar year," Sweeney said. "This change will eliminate confusion, make our rate of growth more apparent, and help investors to make apples-to-apples comparisons."