Case Introduction:

Before beginning the discussion, compute for each company the debt-to-assets ratio, return-on-assets ratio, and return-on-equity ratio. Later you should provide your calculation when responding to a discussion question.

The following data were taken from the 2018 annual reports of Biogen, Inc. and Amgen Inc. Both companies are leaders in biotechnology. All dollar amounts are in millions.

Biogen Amgen 12/31/2018 12/31/2018 Total assets $ 25,889 $ 66,416Total liabilities 12,857 53,916Stockholders' equity 13,032 12,500Net income 4,474 8,394

Directions:

This weeks discussion focuses on Learning Objective (LO) #5: Use a return on assets ratio, debt to assets ratio, and a return on equity ratio to analyze financial statements. You will find it beneficial to complete the lecture video pertaining to that LO #5 before participating.

Discussion Questions:

1. Which company has the greatest level of financial risk? Explain
2. Which company appears to have managed its assets most efficiently? Explain
3. Which company performed better from the perspective of the owners? Explain