If given the opportunity, in which of the firms would you invest based on the result of your analysis of both companies and the comparison with the industry? If you would not invest, explain your reasons according to the results obtained.

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