Question
Accessing SEC reports and Calculating Ratios Access the 2016 financial reports at the SEC websites for Pfizer Inc. and Merck & Co., two close competitors
Accessing SEC reports and Calculating Ratios Access the 2016 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 2016 financial reports Merick's financial reports are available here: Merck 2016 financial reports a. Use data from the companies' balance sheets and income statements to complete the following table.
$ millions | Pfizer | Merck |
---|---|---|
Total assets | Answer
| Answer
|
Revenue | Answer
| Answer
|
Net income | Answer
| Answer
|
b. 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) | Answer
| Answer
|
Profit margin (PM) | Answer
| Answer
|
Asset turnover (AT) | Answer
| Answer
|
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