1. 1. Financial Ratios - In the Quote tab in the Morningstar website, scroll to the Key Ratios tab. Select this and scroll down to Full Key Ratios Data. Select that option. Here you will find key ratios by year. Under Key Ratios: Open the Profitability tab. Comment on asset turnover, return on assets, return on equity, and interest coverage in the context of the latest three years, especially the trend. Open the Growth tab. Comment on revenue growth (year over year) and EPS growth (year over year) in the context of the latest three years, especially the trend. Open the Financial Health tab. Comment on current ratio, quick ratio, financial leverage, and debt/equity in the context of the latest three years, especially the trend. Use your understanding as to what constitutes a good ratio or otherwise. Explore further any highly unusual ratios by referring to the Financials tab. Note also that some of this data is also available in the Excel worksheet.

2. Other Data - Refer to the Excel worksheet. Consider the data on page 4 of 4 of the worksheet. You will find capital spending, long term debt and total equity in dollars. Also, there is a column showing the stocks relative strength vs. the S&P 500. You might find that useful for your recommendation.

Please answer to only Merck & Co. Inc.

Excel Sheet is the data that available in the above table. It has been converted in to pdf.

HEALTHCARE SECTOR Select Companies AS OF 10/26/2018 Drug Manufacturers Rel Smil Smil Strength %ROA %ROE Spending Debt Equity 5 Year CaptalLong TermTotal vs. S&P Financial Health Grade 500 Name 5 Year TTM (Smil Latest Qtr Latest Qtr 3 Year 1 AbbVie Inc 2 Allergan PLC 3 Bristol-Myers Squibb6.76 15.68 4 Eli Lilly and Co 5 GlaxoSmithKline PLC 6 Johnson & Johnson 7 Merck & Co Inc 8 Pfizer Inc 10.27 117.91 541 30,579 3,375 51.26 C 347 24,002 71,244 39.02 B 8.75A 9,17111555 11.58 A -9.09 3,750 29,405 62,889 28.80B 2,189 19,959 32,529 24.99A 0.61 0.36 953 3,036 2,513 32,460 4,856 5,671 12,317 15.41 8.37 126.57 9.57 17.97 5.38 11.60 6.71 7.69 2,212 28,935 69,778 Average 6.92 40.56 1,94322,523 32,724 10.23 S&P 500 HEALTHCARE SECTOR Select Companies AS OF 10/26/2018 Drug Manufacturers Rel Smil Smil Strength %ROA %ROE Spending Debt Equity 5 Year CaptalLong TermTotal vs. S&P Financial Health Grade 500 Name 5 Year TTM (Smil Latest Qtr Latest Qtr 3 Year 1 AbbVie Inc 2 Allergan PLC 3 Bristol-Myers Squibb6.76 15.68 4 Eli Lilly and Co 5 GlaxoSmithKline PLC 6 Johnson & Johnson 7 Merck & Co Inc 8 Pfizer Inc 10.27 117.91 541 30,579 3,375 51.26 C 347 24,002 71,244 39.02 B 8.75A 9,17111555 11.58 A -9.09 3,750 29,405 62,889 28.80B 2,189 19,959 32,529 24.99A 0.61 0.36 953 3,036 2,513 32,460 4,856 5,671 12,317 15.41 8.37 126.57 9.57 17.97 5.38 11.60 6.71 7.69 2,212 28,935 69,778 Average 6.92 40.56 1,94322,523 32,724 10.23 S&P 500