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Compare the key financial ratios of Pfizer Inc. and Johnson & Johnson for the year 2023: Ratio Pfizer Inc. Johnson & Johnson Current Ratio 1.2

Compare the key financial ratios of Pfizer Inc. and Johnson & Johnson for the year 2023:

Ratio

Pfizer Inc.

Johnson & Johnson

Current Ratio

1.2

1.5

Debt-to-Equity Ratio

0.5

0.8

Return on Assets (ROA)

0.07

0.10

Gross Profit Margin

0.35

0.40

Question:

  1. Which company has a higher current ratio, and what does it indicate about their liquidity position?
  2. Compare the debt-to-equity ratios of Pfizer Inc. and Johnson & Johnson. Which company has a higher reliance on debt financing?
  3. Analyze the return on assets (ROA) and gross profit margin for both companies. Which company is more profitable relative to its assets and sales revenue?

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