1. Compare the performance of both companies with each other, for each of the calculated indicators and determine if it is necessary to make any adjustment or adjustments to better position the firm with the lowest performance, facing the end of the next fiscal year. Explain what adjustments you propose and why. (20 points)

Company Name:	Year 2018		Chemicals and Allied Products Industry Ratios
..
Solvency or Debt Ratios	Merck	J&J	2018
Debt ratio	0.67	0.61	0.47
Debt-to-equity ratio	0.93	0.51	0.38
Interest coverage ratio	12.27	18.91	-9.43
Liquidity Ratios
Current ratio	1.17	1.47	3.47
Quick ratio	0.92	1.16	2.12
Cash ratio	0.40	0.63	2.24
Profitability Ratios
Profit margin	14.64%	18.75%	-93.4%
ROE (Return on equity), after tax	23.03%	25.60%	-248.5
ROA (Return on assets)	7.49%	10.00%	-146.5
Gross margin	68.06%	66.79%	55.3%
Operating margin (Return on sales)	19.62%	24.27%	-42.9%
Activity or Efficiency Ratios
Asset turnover	0.51	0.53	1.08
Receivables turnover (days)	61.02	63	16
Inventory turnover (days)	146.98	129	36
Price Ratios
Dividend Payout Ratio	0.84	0.62	0.15