Compare Financial Information Across Industries

Following are selected income statement data for two companies, Pfizer $($pharmaceutical company$)$ and TJX Companies $($clothing retailer$),$ for the fiscal year $2018.$

Income Statement $($$ millions$)$ Pfizer TJX Companies

Sales $$52,574$ $$38,194$

Cost of goods sold $11,24827,831$

Gross profit $41,32610,363$

Total expenses $30,5877,920$

Net income $$10,739$ $$2,443$

Balance Sheet $($$ millions$)$ Pfizer TJX Companies

Current assets $$48,927$ $$8,300$

Long$-$term assets $109,4965,857$

Total assets $$158,423$ $$14,157$

Current liabilities $$31,221$ $$5,420$

Long$-$term liabilities $62,5303,671$

Total liabilities $93,7519,091$

Stockholders$$ equity $64,6725,066$

Total liabilities and equity $$158,423$ $$14,157$

a$.$ Compare gross profit and net income as a percentage of sales for these two companies.

Note: Round percentage to one decimal point $($for example, round $18\mathrm{.}566\%$ to $18\mathrm{.}6\%).$

Pfizer TJX Companies

Gross profit as a percentage of sales Answer

$0$

Answer

$0$

Net income as a percentage of sales Answer

$0$

Answer

$0$

b$.$ Compare sales versus total assets.

Note: Round amount to two decimal places $($for example, round $1\mathrm{.}355$ to $1\mathrm{.}36).$

Pfizer TJX Companies

Sales versus total assets Answer

$0$

Answer

$0$

Based on the calculation above, can you conclude that one company is more capital intensive than the other?

Answer

c$.$ Which company has the higher percentage of total liabilities to stockholders$$ equity?

Note: Round amount to two decimal places $($for example, round $1\mathrm{.}355$ to $1\mathrm{.}36).$

Pfizer TJX Companies

Total liabilities to stockholders' equity Answer

$0$

Answer

$0$

Based on the calculation above, can you conclude that one company is riskier than the othe