Ratio analysis enables one to compare the performance of companies whose financial statements are presented in different currencies. Selected data from 2004 for two large pharmaceutical companies—one American, Pfizer, Inc., and one Swiss, Roche—are presented below (in millions).

For each company, calculate the receivable turnover, days’ sales uncollected, inventory turnover, days’ inventory on hand, payables turnover, and days’
payable. Then determine the operating cycle and days of financing required for each company. (Accounts receivable in 2003 were $8,636 for Pfizer and SF6,774 for Roche. Inventories in 2003 were $5,699 for Pfizer and SF5,025 for Roche.
Accounts payable in 2003 were $2,587 for Pfizer and SF1,700 for Roche.) Prepare a memo containing your analysis of the operating cycles of these companies.

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Pfizer, Inc. (U.S.) Roche (Swiss) Net sales $52,516 SF29,522 Cost of goods sold 7,541 6,556 Accounts receivable 9,367 6,781 Inventories 6,660 4,574 Accounts payable 2,672 1,844