please answer the questions on first picture

H, I, and I below E. Identify the most significant reason that PFE had a better operating profit margin than JN) during 2020: F. Refer to the ratios. Which firm poses the greatest risk of insolvency to its creditors? Give two ratios that support your choice: G. Which company is more effective at converting its accrual earnings into operating cash flows? List the ratio that informed your answer: H. Which firm is better at managing its assets to create revenue? List two ratios that support your answer and discuss your interpretation of both ratios by using one sentence for each ratio. 1. Assume INI's sales growth is equal to its sustainable growth. Explain what this means in terms of JNI's future financing needs. J. Interpret the difference in INI's and PFE's "Days Payable Period." Also, provide one reason why a firm would prefer a low "Days Payable Period" and provide one reason why a firm would prefer a high "Days Payable Period." JNJ 20 PFE 20 ROE MODEL Return on shareholders' equity (ROE) 23% 15% 89 Retum on assets (ROA) 2.764 2430 Leverage Profitability Return on sales (ROS) 18% 239% 1% 2% Sales Growth 29% 13% Dividend retention rate 7% 26 Sustainable growth rate 71% 79% Gross Profit Margin 18% 1996 Operating Profit Margin Asset Management Asset turnover 0.472 0.272 Receivable turnover 6.083 5.285 Receivable collection period 60.002 69.067 2.539 Inventory turnover 1.080 Inventory on hand period 143.742 337.873 PPE turnover 4.401 3.015 Liquidity Cash to total assets 14% 8% Quick ratio 0.912 0.777 Current ratio 1.206 1.353 hccounts payable turnover 2.496 2017 Days payable period 146.218 180.946 Cash collection period 57.526 225.993 Operating funds ratio 1.600 1.097 Op Cash Flow to Cur Liab 0.554 0.408 Solven Long-term debt to total assets 0.202 0.258 Long-term debt to shareholders' equity 0.557 0.628 Interest coverage ratio 83.075 16.139 Dec 31, 2020 Dec 31, 2019 Pfizer Common Sized B/S Assets Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses Deferred tax assets Other current assets Total current assets Property, plant and equipment Intangible assets, net Goodwill $ 1,784 1% 10,437 7% 7,930 5% 8,046 5% 0 0% 3,264 2% 3,605 2% 35,067 23% 13,900 9% 28,471 18% 49,577 32% 2,383 2% 20,262 13% 4,569 3% 154,229 100% $ 1,121 1% 8,525 5% 6,772 4% 7,068 4% 0 0% 2,736 2% 6,581 4% 32,803 20% 12,969 8% 33,936 20% 48,202 29% 1,911 1% 20,147 12% 17,626 11% 167,594 100% Deferred tax assets Long-term investments Other noncurrent assets Total assets 29 3% 10% 2% 8% 10% 16,195 3,887 13,851 2,390 980 2% 1% Liabilities and Equity Short-term borrowings Accounts payable Accrued liabilities Accrued compensation Taxes payable Total current liabilities Long-term debt Deferred tax liabilities Employee related obligations Long-term taxes payable Other noncurrent liabilities Total liabilities 19 17% 2,703 4,309 14,802 3,058 1,049 25,920 37,133 4,063 5,411 11,560 6,669 90,756 24% 3% 1% 22% 21% 3% 4% 7% 37,304 35,955 5,652 6,217 12,126 6,894 104,148 4% 7% 4% 4% 59% 62% Preferred stock Common stock Treasury stock Retained earnings AOC Total equity Total liabilities and equity 0 0% 89,144 58% (110,988) -72% 96,770 63% (11,688) -8% 63,473 41% $ 154,229 100% 17 0% 87,896 52% (110,801) 66% 97,670 58% (11.640) -7% 63,447 38% $ 167,594 100% Jan. 03, 2021 Dec 29, 2019 9% J&J Common Sized B/S Assets Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid expenses Deferred tax assets Other current assets Total current assets Property, plant and equipment, net Intangible assets, net Goodwill Deferred tax assets Long-term investments Other noncurrent assets Total assets $ 13,985 8% 11,200 6% 13,576 896 9,344 5% 3,132 2% 0 0% 0 0% 51,237 29% 18,766 11% 53,402 31% 36,393 21% 8,534 5% 0 0% 6,562 4% 174,894 100% $ 17,305 11% 1,982 1% 14,181 9,020 6% 2,392 2% 0 0% 94 0% 45,274 29% 17,658 11% 47,643 30% 33,639 21% 7,819 5% 0 0% 5,695 4% 157,728 100% 2% 5% 15% 1% 5% 13% 2% 1% 2% 1% Liabilities and Equity Short-term borrowings Accounts payable Accrued Liabilities Accrued compensation Taxes payable Total current liabilities Long-term debt Deferred tax liabilities Employee related obligations Long-term taxes payable Other liabilities Total liabilities 24% 2,631 9,505 25,481 3,484 1,392 42,493 32,635 7,214 10,771 6,559 11,944 111,616 1,202 8,544 20,598 3,354 2,266 35,964 26,494 5,958 10,663 7,444 11,734 98,257 19% 4% 6% 23% 17% 4% 7% 5% 7% 62% 4% 7% 64% Preferred stock Common stock Treasury stock Retained earnings AOCI Total equity Total liabilities and equity 0 0% 3,120 2% (38,490) -22% 113,890 65% (15,242) -9% 63,278 36% $ 174,894 100% 0 0% 3,120 2% (38,417) 24% 110,659 70% (15,891) -10% 59,471 38% $ 157,728 100% 12 Months Ended Pfizer Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Common Sire Income Statement Revenues COGS Gross profit SG&A expense R&D expense Amortization of intangible assets Restructuring charges Operating Profit Interest income Interest expense Other (income) expense, net Earnings before Taxes Provision/(benefit) for taxes Net earnings $ 41.908 100% 8,692 21% 33,216 79% 11,615 28% 9,405 22% 3,436 8% 600 1% 8,160 19% (6) 0% 669 2% (2,631) -6% 10,128 24% 477 1% 9,652 23% $ 41,172 100% 8,251 20% 32,921 80% 12,750 31% 8,394 20% 4,462 11% 601 1% 6,714 16% (8,086) 20% 3,314 8% (5,435) -13% 16,921 41% 618 2% $ 40,825 100% 8,987 22% 31,838 78% 12,612 31% 7,760 19% 4,736 12% 1,058 3% 5,672 14% 0 0% 2,077 5% (7,328) -18% 10,923 27% (266) -1% 11,188 27% 16,302 40% Johnson & Johnson 12 Months Ended Jan. 03, 2021 Dec. 29, 2019 27% Common Size Income Statement ($ in Millions) Revenue COGS Gross profit SG&A expense R&D expense Amortization Restructuring charges Operating Profit Interest income Interest expense Other (income) expense, net Earnings before Taxes Provision for taxes Net earnings $ 82,584 100% 23,727 29% 54,157 66% 22,084 27% 12,340 15% 4,700 6% 247 0% 18% (111) 0% 201 0% 2,899 4% 16,497 20% 1,783 2% $ 14,714 18% 14,786 $ 82,059 100% 23,056 28% 54,503 66%6 22,178 12,245 15% 4,500 5% 266 0% 15,314 19% (357) 318 0% 2,525 3% 17,328 21% 2,209 3% $ 15,119 18%