Question
Comparing Firms Using Ratio Analysis Consider the following 2013 data for several pharmaceutical firms ($ millions): Average Current Liabilities Cash from Operations Expenditures on PPE
Comparing Firms Using Ratio Analysis
Consider the following 2013 data for several pharmaceutical firms ($ millions):
| Average Current Liabilities | Cash from Operations | Expenditures on PPE | Proceeds from the Sale of PPE | |
|---|---|---|---|---|
| Merck & Co., Inc. | $18,108 | $11,654 | $1,548 | $0 |
| Pfizer Inc. | 26,276 | 17,765 | 1,206 | 0 |
| Abbott Laboratories | 11,394 | 3,324 | 1,145 | 0 |
| Johnson & Johnson | 24,969 | 17,414 | 3,595 | 458 |
a. Compute the operating cash flow to current liabilities (OCFCL) ratio for each firm. (Round your answer to two decimal places.)
| Merck & Co., Inc. | Answer | |
| Pfizer Inc. | Answer | |
| Abbott Laboratories | Answer | |
| Johnson & Johnson | Answer |
b. Compute the free cash flow for each firm.
| Merck & Co., Inc. | Answer | |
| Pfizer Inc. | Answer | |
| Abbott Laboratories | Answer | |
| Johnson & Johnson | Answer |
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Business Ethics A Stakeholder And Issues Management Approach
Authors: Joseph W. Weiss
7th Edition
1523091541, 978-1523091546
