E2-44.Compare Financial Information Across Industries Use the data and computations required in parts a and b of exercises E2-4 I and E2-42 to compare TJX Companies and Pfizer, Inc.

a. Compare gross profit and net income as a percentage of sales for these two companies. How might differences in their respective business models explain the differences observed?

b. Compare sales versus total assets. What do observed differences indicate about the relative capital intensity of these two industries?

c. Which company has the higher percentage of total liabilities to stockholders' equity? What do these ratios imply about the relative riskiness of these two companies?

TJX COMPANIES

(TJX)

PFIZER, INC.

(PFE) •