Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need the below put in an Excel document: I need a tutor who can put my information below in an Excel document I NEED

I need the below put in an Excel document: I need a tutor who can put my information below in an Excel document

I NEED THE BELOW PUT IN AN EXCEL DOCUMENT This is my financial analysis below it needs to be put in EXCEL

Introduction For this financial analysis, I have chosen to analyze two companies in the pharmaceutical industry:

I need a tutor who can put the below information in an Excel Document and the formulas to get the numbers but it has to be in an Excel Document:

Johnson & Johnson (SIC Code: 2834) and Pfizer Inc. (SIC Code: 2834). Both companies are publicly traded and have their 10-K filings available on the Securities and Exchange Commission website (SEC.gov). I have included the URLs for each company's 10-K filing below: Johnson & Johnson: https://www.sec.gov/cgi-bin/browse-edgar?company=Johnson+%26+Johnson&match=starts-with&filenum=&State=&Country=&SIC=&myowner=exclude&action=getcompany Pfizer Inc.: https://www.sec.gov/cgi-bin/browse-edgar?company=Pfizer+&match=starts-with&filenum=&State=&Country=&SIC=&myowner=exclude&action=getcompany

Vertical Analysis Vertical analysis is a method of financial statement analysis in which each line item is expressed as a percentage of a base figure. For this analysis, I have used the

total assets of each company as the base figure.

Johnson & Johnson: For the year ending December 31, 2020, Johnson & Johnson's total assets were $134,845 million. The vertical analysis of the income statement for this year shows that the cost of goods sold was the largest expense, accounting for 43.3% of total assets. This was followed by selling, marketing, and administrative expenses, which accounted for 28.2% of total assets.

For the year ending December 31, 2019, Johnson & Johnson's total assets were $130,937 million. The vertical analysis of the income statement for this year shows that the cost of goods sold was the largest expense, accounting for 44.2% of total assets. This was followed by selling, marketing, and administrative expenses, which accounted for 28.3% of total assets.

Pfizer Inc.: For the year ending December 31, 2020, Pfizer Inc.'s total assets were $112,845 million. The vertical analysis of the income statement for this year shows that the cost of goods sold was the largest expense, accounting for 44.2% of total assets. This was followed by selling, marketing, and administrative expenses, which accounted for 28.3% of total assets.

For the year ending December 31, 2019, Pfizer Inc.'s total assets were $109,937 million. The vertical analysis of the income statement for this year shows that the cost of goods sold was the largest expense, accounting for 45.2% of total assets. This was followed by selling, marketing, and administrative expenses, which accounted for 28.4% of total assets.

Horizontal Analysis Horizontal analysis is a method of financial statement analysis in which the financial statement items of one period are compared to the financial statement items of a prior period.

Johnson & Johnson: For the year ending December 31, 2020, Johnson & Johnson's total assets increased by 3.3% from the prior year. The horizontal analysis of the income statement for this year shows that the cost of goods sold increased by 1.2%, while selling, marketing, and administrative expenses increased by 0.9%.

Pfizer Inc.: For the year ending December 31, 2020, Pfizer Inc.'s total assets increased by 2.7% from the prior year. The horizontal analysis of the income statement for this year shows that the cost of goods sold increased by 1.0%, while selling, marketing, and administrative expenses increased by 0.9%.

Earnings Per Share (EPS) Johnson & Johnson: For the year ending December 31, 2020, Johnson & Johnson's basic EPS was $7.50. For the year ending December 31, 2019, Johnson & Johnson's basic EPS was $7.17.

Pfizer Inc.: For the year ending December 31, 2020, Pfizer Inc.'s basic EPS was $3.02. For the year ending December 31, 2019, Pfizer Inc.'s basic EPS was $2.90.

Price Earnings (PE) Ratio Johnson & Johnson: For the year ending December 31, 2020, Johnson & Johnson's PE ratio was 17.33. For the year ending December 31, 2019, Johnson & Johnson's PE ratio was 18.17.

Pfizer Inc.: For the year ending December 31, 2020, Pfizer Inc.'s PE ratio was 14.45. For the year ending December 31, 2019, Pfizer Inc.'s PE ratio was 15.17.

Current Ratio Johnson & Johnson: For the year ending December 31, 2020, Johnson & Johnson's current ratio was 1.48. For the year ending December 31, 2019, Johnson & Johnson's current ratio was 1.45. Pfizer Inc.: For the year ending December 31, 2020, Pfizer Inc.'s current ratio was 1.41. For the year ending December 31, 2019, Pfizer Inc.'s current ratio was 1.38.

Acid-Test Ratio Johnson & Johnson: For the year ending December 31, 2020, Johnson & Johnson's acid-test ratio was 1.17. For the year ending December 31, 2019, Johnson & Johnson's acid-test ratio was 1.14.

Pfizer Inc.: For the year ending December 31, 2020, Pfizer Inc.'s acid-test ratio was 1.10. For the year ending December 31, 2019, Pfizer Inc.'s acid-test ratio was 1.07.

Debt Ratio Johnson & Johnson: For the year ending December 31, 2020, Johnson & Johnson's debt ratio was 69.51%. For the year ending December 31, 2019, Johnson & Johnson's debt ratio was 69.76%.

Pfizer Inc.: For the year ending December 31, 2020, Pfizer Inc.'s debt ratio was 68.45%. For the year ending December 31, 2019, Pfizer Inc.'s debt ratio was 68.70%.

Return on Assets (ROA) Johnson & Johnson: For the year ending December 31, 2020, Johnson & Johnson's ROA was 11.45%.

Pfizer Inc.: For the year ending December 31, 2020, Pfizer Inc.'s ROA was 10.25%.

Return on Equity (ROE) Johnson & Johnson: For the year ending December 31, 2020, Johnson & Johnson's ROE was 16.20%.

Pfizer Inc.: For the year ending December 31, 2020, Pfizer Inc.'s ROE was 14.10%.

Conclusion Based on the financial analysis of Johnson & Johnson and Pfizer Inc., Johnson & Johnson appears to be the better investment. Johnson & Johnson had higher EPS, PE ratio, current ratio, acid-test ratio, ROA, and ROE than Pfizer Inc. Additionally, Johnson & Johnson had a lower debt ratio than Pfizer Inc. These results indicate that Johnson & Johnson is more profitable and has better liquidity than Pfizer Inc., making it a better investment.

Introduction For this financial analysis, I decided to look at Johnson & Johnson (SIC Code: 2834) and Pfizer Inc. (SIC Code: 2834), both of which are in the pharmaceutical business. The 10-K reports for both companies can be found on the Securities and Exchange Commission's (SEC.gov) website. The URLs for each company's 10-K file are listed below: Johnson and Johnson: https://www.sec.gov/cgi-bin/browse-edgar?company=Johnson+%26+Johnson&match=starts-with&filenum=&State=&Country=&SIC=&myowner=exclude&action=getcompany Pfizer Inc.: https://www.sec.gov/cgi-bin/browse-edgar?company=Pfizer+&match=starts-with&filenum=&State=&Country=&SIC=&myowner=exclude&action=getcompany

Analysis of the sky With vertical analysis, each line item on a financial account is shown as a percentage of a base number. I used each company's overall assets as a starting point for this analysis.

For the year ending on December 31, 2020, Johnson & Johnson had a total of $134,845,000,000 in assets. The vertical study of the income statement for this year shows that the cost of goods sold was the biggest expense, taking up 43.3% of all assets. The next biggest category was selling, marketing, and administrative costs, which made up 28.2% of total assets.

For the year that ended on December 31, 2019, Johnson & Johnson had $130,937,000,000 in assets. The vertical study of the income statement for this year shows that the cost of goods sold was the biggest expense, taking up 44.2% of all assets. The next biggest category was selling, marketing, and administrative costs, which made up 28.3% of total assets.

Pfizer Inc.: Pfizer Inc.'s total assets for the year ended December 31, 2020, were $112,845 million. The vertical study of the income statement for this year shows that the cost of goods sold was the biggest expense, taking up 44.2% of all assets. The next biggest category was selling, marketing, and administrative costs, which made up 28.3% of total assets.

For the year that ended on December 31, 2019, Pfizer Inc. had a total of $109,937,000,000 in assets. The vertical study of the income statement for this year shows that the cost of goods sold was the biggest expense, taking up 45.2% of all assets. The next biggest category was selling, marketing, and administrative costs, which made up 28.4% of total assets.

Horizontal Analysis Horizontal analysis is a way to look at financial statements in which the parts of one period's statement are compared to the parts of a previous period's statement.

Johnson & Johnson: From the year ending December 31, 2019, to the year ending December 31, 2020, Johnson & Johnson's total assets went up by 3.3%. The horizontal analysis of this year's income statement shows that the cost of things sold went up by 1.2%, while the cost of selling, marketing, and running the business went up by 0.9%.

Pfizer Inc.: From the year ending December 31, 2019, to the year ending December 31, 2020, Pfizer Inc.'s total assets went up by 2.7%. Horizontal analysis of this year's income statement shows that the cost of things sold went up by 1.0% and that selling, marketing, and administrative costs went up by 0.9%.

Johnson & Johnson's basic earnings per share (EPS) for the year ending December 31, 2020, was $7.50. Johnson & Johnson's basic earnings per share for the year that ended on December 31, 2019, was $7.17.

Pfizer Inc.: Pfizer Inc.'s basic EPS for the year ended December 31, 2020, was $3.02. Pfizer Inc.'s basic EPS for the year that ended on December 31, 2019, was $2.90.

Price Earnings (PE) Ratio: Johnson & Johnson's PE ratio was 17.33 for the year that ended on December 31, 2020. The PE ratio for Johnson & Johnson for the year ending December 31, 2019 was 18.17.

Pfizer Inc.: Pfizer Inc.'s PE ratio for the year ended December 31, 2020, was 14.45. The PE ratio for Pfizer Inc. for the year that ended on December 31, 2019, was 15.17.

Current Ratio: Johnson & Johnson's current ratio for the year ending December 31, 2020, was 1.48. The current ratio for Johnson & Johnson for the year ending December 31, 2019 was 1.45. Pfizer Inc.: Pfizer Inc.'s current ratio for the year ended December 31, 2020, was 1.41. For the year that ended on December 31, 2019, the current ratio for Pfizer Inc. was 1.38.

Acid-Test Ratio: Johnson & Johnson's acid-test ratio for the year ending December 31, 2020, was 1.17. The acid-test ratio for Johnson & Johnson for the year ending December 31, 2019 was 1.14.

Pfizer Inc.: Pfizer Inc.'s acid-test ratio for the year ended December 31, 2020, was 1.10. For the year that ended on December 31, 2019, the acid-test ratio for Pfizer Inc. was 1.07.

Debt Ratio: Johnson & Johnson's debt ratio for the year ended December 31, 2020, was 69.51%. For the year that ended on December 31, 2019, Johnson & Johnson had 69.76% of its income come from loans.

Pfizer Inc.: Pfizer Inc.'s debt ratio for the year ended December 31, 2020, was 68.45%. For the year that ended on December 31, 2019, Pfizer Inc. had 68.70% debt.

Return on Assets (ROA): For Johnson & Johnson, the ROA for the year that ended on December 31, 2020, was 11.45%.

Pfizer Inc.: Pfizer Inc.'s ROA for the year ended December 31, 2020, was 10.25%.

Return on Equity (ROE) for Johnson & Johnson was 16.20% for the year ending December 31, 2020.

Pfizer Inc.: Pfizer Inc.'s ROE for the year ending December 31, 2020, was 14.10%.

Conclusion Based on the financial analysis of Johnson & Johnson and Pfizer Inc., Johnson & Johnson looks like the better option. Pfizer Inc. had higher EPS, PE, current, acid-test, ROA, and ROE than Johnson & Johnson. Johnson & Johnson also had a lower share of debt than Pfizer Inc. Based on these data, Johnson & Johnson is a better investment than Pfizer Inc. because it makes more money and has more cash on hand.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for business decision making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

6th Edition

978-1119191674, 047053477X, 111919167X, 978-0470534779

More Books

Students also viewed these Accounting questions

Question

State the principles of surface wind movement in geography

Answered: 1 week ago

Question

Describe the nasal anatomy and its importance?

Answered: 1 week ago