A side by side financial analysis comparison of financial ratios for Johnson&Johnson and Proctor &Gamble for the years 2014 thru 2016.

These ratios

Performance Measures Market Value Added Market-to-Book Ratio MVAmarket capitalization - equity book value Market capitalization-(#shares) (price per share) "market value of equity" /"book value of equity" Profitability Measures Return on Assets (ROA) Return on Capital (ROC) "after-tax operating income" /"total assets" or "asset turnover" x "operating profit margin" "after-tax operating income" /"total capitalization" "net income" /"equity" or "leverage ratio" x "asset turnover" "operating profit margin" "debt burden" Leverage Ratio "assets" /"equity" Debt burden "net income" /"after-tax operating income" Return on Equity (ROE) after tax op income-(cost of capital total capitalization) After tax operating income-[(1-tax rate) x interest expense] + net income Total capitalization long-term debt + shareholder's equity Economic Value Added (EVA) Efficiency Measures Asset Turnover Receivables Turnover Average Collection Period (days) "receivables at start of year" /"average daily sales" Inventory Turnover Average Days In Inventory Profit Margin Operating Profit Margin "sales"/"total assets at start of year" or "sales" /"receivables at start of year" "cost of goods sold" /"inventory at start of year" "inventory at start of year" /"cost of goods sold/365" Net Income"/"Sales" after-tax operating income /"sales" Financial Leverage Measures Long-term Debt Ratio Long-term Debt-Equity Ratio Total Debt Ratio Times Interest Earned Cash Coverage Ratic "long-term debt" /"long-term debt equity" "long-term debt" /"equity" "total liabilities" /"total assets" "EBIT" /"interest payments" ***EBIT is Earnings Before Income Taxes*** "EBITdepreciation"/"interest payments" Liquidity Measures Net Working Capital to Assets Current Ratio Quick Ratio Cash Ratio "net working capital"/"total assets" net working capital "total current assets" - "total current liabilities" "current assets" /"current liabilities" "cash marketable securitiesreceivables" /"current liabilities" "cash marketable securities" /"current liabilities