Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Accessing SEC reports and Calculating Ratios Access the 2012 financial reports at the SEC websites for Pfizer Inc. and Merck & Co., two close competitors

Accessing SEC reports and Calculating Ratios Access the 2012 financial reports at the SEC websites for Pfizer Inc. and Merck & Co., two close competitors in the pharmaceutical industry. Pfizer's financial reports are available here: Pfizer 2012 financial reports Merick's financial reports are available here: Merck 2012 financial reports

Use data from the companies' balance sheets and income statements to complete the following table.

$ millionsPfizerMerckTotal assetsRevenueNet income

$Millions   Pfizer Merck

Total assets $0 0
Revenue 0 0
Net income 0 0

Compute the ROA and the components for profit margin and asset turnover for each company.

Round answers to two decimal places (example: 0.12345 = 12.35%).
To simplify computations, use year-end balance for total assets to compute ratios.

  Pfizer Merck

Return on assets (ROA) 0% 0%
Profit margin (PM) 0% 0%
Asset turnover (AT) 0 0

Step by Step Solution

3.43 Rating (166 Votes )

There are 3 Steps involved in it

Step: 1

SOLUTION First well need to gather the necessary data from the balance sheets and income statements ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Financial Accounting

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

11th edition

978-0133251111, 013325111X, 0133251039, 978-0133251036

More Books

Students also viewed these Accounting questions

Question

Cash dividends are not expenses. Explain.

Answered: 1 week ago