need help with problem #3

The specific purposes of the projects are: 1. Apply to actual companies the knowledge and analytical techniques learned from our course. 2. Perform vertical and horizontal analysis and various ratios on the financial statements. 3. Compare the calculated results with competitor and across different years. 4. Summarize the analyses and make investment recommendations. You will be analyzing the following firms: a. Pfizer b. Bristol Myers Squibb Please check the blackboard for the financial statements. (3) Prepare ratio analyses (for 2020,2019 , and 2018) for both companies. You should include the following ratios in your computations: - Profitability ratios Gross Profit margin Profit margin Return on assets Return on equity - Productivity Inventory Turnover Accounts Receivable Turnover PPE Turnover Asset Turnover - Solvency Debt-to-equity Times interest earned Return on Financial leverage - Liquidity Current Ratio Quick Ratio Operating cash flow to current liabilities Working capital (3) Comment on the analytical results of the two companies based on your work in excel. In addition to contrasting the ratios between the companies, you should interpret the numbers and make suggestions as to why the ratio of one company might be higher/lower than the other. 1 USE 2017 INFORMATION ONLY FOR CALCULATION OF RATIOS. 2 Bristol Myers Squibb Co. (NYS: BMY) 3 Report Date 4 Cash \& cash equivalents 5 Marketable debt securities 6 Receivables, net 7 Inventories, net 8 Prepaid expenses \& other current assets 9 Total current assets 10 Property, plant \& equipment, net 11 Goodwill 12 Other intangible assets 13 Deferred income taxes 14 Marketable debt securities 15 Other non-current assets 16 Total assets 17 18 Liabilities 19 Short-term debt obligations 20 Accounts payable 21 Other current liabilities 22 Total current liabilities 23 Deferred income taxes 24 Long-term debt 25 Other non-current liabilities 26 Total liabilities \begin{tabular}{|r|r|r|r|} \hline 2020 & 2019 & 2018 & 2017 \\ \hline 14,546 & 12,346 & 6,911 & 5,421 \\ \hline 1,285 & 3,047 & 1,973 & 1,391 \\ \hline 8,501 & 7,685 & 5,965 & 6,300 \\ \hline 2,074 & 4,293 & 1,195 & 1,166 \\ \hline 3,786 & 1,983 & 1,116 & 576 \\ \hline 30,192 & 29,354 & 17,160 & 14,854 \\ \hline 5,886 & 6,252 & 5,027 & 5,001 \\ \hline 20,547 & 22,488 & 6,538 & 6,863 \\ \hline 53,243 & 63,969 & 1,091 & 1,210 \\ \hline 1,161 & 510 & 1,371 & 1,610 \\ \hline 433 & 767 & 1,775 & 2,480 \\ \hline 7,019 & 6,604 & 2,024 & 1,533 \\ \hline 118,481 & 129,944 & 34,986 & 33,551 \\ \hline \end{tabular} 27 28 Stockholders' Equity 29 Common stock 30 Capital in excess of par value of stock 31 Accumulated other comprehensive income (loss) 32 Retained eamings 33 Less cost of treasury stock 34 Non-controlling interest 35 Total equity \begin{tabular}{|r|r|r|r|} \hline 2,340 & 3,346 & 1,703 & 987 \\ \hline 2,713 & 2,445 & 1,892 & 2,248 \\ \hline 14,027 & 12,513 & 7,059 & 6,328 \\ \hline 19,080 & 18,304 & 10,654 & 9,563 \\ \hline 5,407 & 6,454 & 4,559 & 5,166 \\ \hline 48,336 & 43,387 & 5,646 & 6,975 \\ \hline 7,776 & 10,101 & & \\ \hline 80,599 & 78,246 & 20,859 & 21,704 \\ \hline \end{tabular} 36 37 38 40 41 \begin{tabular}{l} 42 \\ 42 \\ 43 \\ 44 \\ 45 \\ 46 \\ 47 \\ 48 \\ \hlinen \\ \hline \end{tabular} Bristol Myers Squibb Co. (NYS: BMY) Net product sales Alliance \& other revenues Total revenues Cost of products sold Marketing, selling \& administrative expenses Research \& development expenses Amortization of acquired intangible assets 0 Interest expense 1 Royalties \& licensing income 2 Equity investment gains 3 Other expense (gain) 4 Total expenses 5 Earnings (loss) before income taxes 6 Provision for (benefit from) income taxes 7 Earnings after income taxes 8 Net earnings (loss) attributable to noncontrolling interest 2020 41,321 1,197 1,197 42,518 11.773 \begin{tabular}{r|r|r|} \hline 11,773 & 8,078 & 6,547 \\ \hline 7,661 & 4,871 & 4,551 \\ \hline 11,143 & 6,148 & 6,345 \\ \hline 9,688 & 1,135 & 26,145 \\ \hline \end{tabular} 9 Net Income 9,688 1,420 1,527 1,228 10,459 49,389 (6,871) 2,124 (8,995) (20) (9,015) 1,135 656 1,360 279 1,921 183 1,353 (512) (192) 16,593 1,021 4,947 (27) 4,920 A B USE THIS INFORMATION ONLY IF NEEDED A USE 2017 INFORMATION ONLY FOR CALCULATION OF RATIOS. Pfizer Inc (NYS: PFE) 3 Report Date 4 Cash & cash equivalents 5 Shod-term imestments 6 Trade accounts receivable 7 Inventories 8 Current tax assets 9 Other current assets 10 Assets held for sale 11 Total current assets 12 Equity-method investments 13 Long-term investments 14 Property, plant \& equipment 15 Identifable intangble assets 16 Goodwill 17 Noncurrent deferred tax assets & other noncurrent tax assets 18 Other noncurrent assets 19 Total assets 20 Liabilities 22 Shortterm borrowings, including current portion of longterm debt 23 Trade accounts payable 24 Dividends payable 25 Income taxes payable 26 Accrued compensation \& related items 27. Other current liabilities 28 Total current liabilities 29 Longterm debt 30 Pension benefit obligations 31 Postretirement benefit obligations 32. Noncurrent deforred tax liabilities 33. Other taxes payable 34 Other noncurrent liabelities 35 Total liabilities The specific purposes of the projects are: 1. Apply to actual companies the knowledge and analytical techniques learned from our course. 2. Perform vertical and horizontal analysis and various ratios on the financial statements. 3. Compare the calculated results with competitor and across different years. 4. Summarize the analyses and make investment recommendations. You will be analyzing the following firms: a. Pfizer b. Bristol Myers Squibb Please check the blackboard for the financial statements. (3) Prepare ratio analyses (for 2020,2019 , and 2018) for both companies. You should include the following ratios in your computations: - Profitability ratios Gross Profit margin Profit margin Return on assets Return on equity - Productivity Inventory Turnover Accounts Receivable Turnover PPE Turnover Asset Turnover - Solvency Debt-to-equity Times interest earned Return on Financial leverage - Liquidity Current Ratio Quick Ratio Operating cash flow to current liabilities Working capital (3) Comment on the analytical results of the two companies based on your work in excel. In addition to contrasting the ratios between the companies, you should interpret the numbers and make suggestions as to why the ratio of one company might be higher/lower than the other. 1 USE 2017 INFORMATION ONLY FOR CALCULATION OF RATIOS. 2 Bristol Myers Squibb Co. (NYS: BMY) 3 Report Date 4 Cash \& cash equivalents 5 Marketable debt securities 6 Receivables, net 7 Inventories, net 8 Prepaid expenses \& other current assets 9 Total current assets 10 Property, plant \& equipment, net 11 Goodwill 12 Other intangible assets 13 Deferred income taxes 14 Marketable debt securities 15 Other non-current assets 16 Total assets 17 18 Liabilities 19 Short-term debt obligations 20 Accounts payable 21 Other current liabilities 22 Total current liabilities 23 Deferred income taxes 24 Long-term debt 25 Other non-current liabilities 26 Total liabilities \begin{tabular}{|r|r|r|r|} \hline 2020 & 2019 & 2018 & 2017 \\ \hline 14,546 & 12,346 & 6,911 & 5,421 \\ \hline 1,285 & 3,047 & 1,973 & 1,391 \\ \hline 8,501 & 7,685 & 5,965 & 6,300 \\ \hline 2,074 & 4,293 & 1,195 & 1,166 \\ \hline 3,786 & 1,983 & 1,116 & 576 \\ \hline 30,192 & 29,354 & 17,160 & 14,854 \\ \hline 5,886 & 6,252 & 5,027 & 5,001 \\ \hline 20,547 & 22,488 & 6,538 & 6,863 \\ \hline 53,243 & 63,969 & 1,091 & 1,210 \\ \hline 1,161 & 510 & 1,371 & 1,610 \\ \hline 433 & 767 & 1,775 & 2,480 \\ \hline 7,019 & 6,604 & 2,024 & 1,533 \\ \hline 118,481 & 129,944 & 34,986 & 33,551 \\ \hline \end{tabular} 27 28 Stockholders' Equity 29 Common stock 30 Capital in excess of par value of stock 31 Accumulated other comprehensive income (loss) 32 Retained eamings 33 Less cost of treasury stock 34 Non-controlling interest 35 Total equity \begin{tabular}{|r|r|r|r|} \hline 2,340 & 3,346 & 1,703 & 987 \\ \hline 2,713 & 2,445 & 1,892 & 2,248 \\ \hline 14,027 & 12,513 & 7,059 & 6,328 \\ \hline 19,080 & 18,304 & 10,654 & 9,563 \\ \hline 5,407 & 6,454 & 4,559 & 5,166 \\ \hline 48,336 & 43,387 & 5,646 & 6,975 \\ \hline 7,776 & 10,101 & & \\ \hline 80,599 & 78,246 & 20,859 & 21,704 \\ \hline \end{tabular} 36 37 38 40 41 \begin{tabular}{l} 42 \\ 42 \\ 43 \\ 44 \\ 45 \\ 46 \\ 47 \\ 48 \\ \hlinen \\ \hline \end{tabular} Bristol Myers Squibb Co. (NYS: BMY) Net product sales Alliance \& other revenues Total revenues Cost of products sold Marketing, selling \& administrative expenses Research \& development expenses Amortization of acquired intangible assets 0 Interest expense 1 Royalties \& licensing income 2 Equity investment gains 3 Other expense (gain) 4 Total expenses 5 Earnings (loss) before income taxes 6 Provision for (benefit from) income taxes 7 Earnings after income taxes 8 Net earnings (loss) attributable to noncontrolling interest 2020 41,321 1,197 1,197 42,518 11.773 \begin{tabular}{r|r|r|} \hline 11,773 & 8,078 & 6,547 \\ \hline 7,661 & 4,871 & 4,551 \\ \hline 11,143 & 6,148 & 6,345 \\ \hline 9,688 & 1,135 & 26,145 \\ \hline \end{tabular} 9 Net Income 9,688 1,420 1,527 1,228 10,459 49,389 (6,871) 2,124 (8,995) (20) (9,015) 1,135 656 1,360 279 1,921 183 1,353 (512) (192) 16,593 1,021 4,947 (27) 4,920 A B USE THIS INFORMATION ONLY IF NEEDED A USE 2017 INFORMATION ONLY FOR CALCULATION OF RATIOS. Pfizer Inc (NYS: PFE) 3 Report Date 4 Cash & cash equivalents 5 Shod-term imestments 6 Trade accounts receivable 7 Inventories 8 Current tax assets 9 Other current assets 10 Assets held for sale 11 Total current assets 12 Equity-method investments 13 Long-term investments 14 Property, plant \& equipment 15 Identifable intangble assets 16 Goodwill 17 Noncurrent deferred tax assets & other noncurrent tax assets 18 Other noncurrent assets 19 Total assets 20 Liabilities 22 Shortterm borrowings, including current portion of longterm debt 23 Trade accounts payable 24 Dividends payable 25 Income taxes payable 26 Accrued compensation \& related items 27. Other current liabilities 28 Total current liabilities 29 Longterm debt 30 Pension benefit obligations 31 Postretirement benefit obligations 32. Noncurrent deforred tax liabilities 33. Other taxes payable 34 Other noncurrent liabelities 35 Total liabilities