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Please review the following real-world ratios for Johnson & Johnson and Pfizer for the year ended 2012 and address the 2 questions below. Ratio Name
Please review the following real-world ratios for Johnson & Johnson and Pfizer for the year ended 2012 and address the 2 questions below.
Ratio Name | Johnson & Johnson | Pfizer |
Profit margin | 16.1% | 24.7% |
Inventory turnover ratio | 3.1 | 1.7 |
Average collection period | 59.4 days | 69.1 days |
Cash debt coverage ratio | .27 | .16 |
Debt to Total assets | 46.6% | 127.5% |
Required: 1: Please explain the meaning of each of the Pfizer ratios above. 2: Please state which company performed better for each ratio.
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