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Accounting 2 - Financial Statement Analysis Project Please refer to chapter 17 to refresh your memory on ratio analysis. 1. Calculate the following ratios for both Companies Pfizer 2019 Moderna 2019 2020 2018 2020 2018 Income Statement Ratios Gross Margin ((Revenues - Cost of Sales)/Revenues) Profit Margin (Net Income or Net Loss/ Revenues) Balance Sheet Ratios Current Ratio Debt to Asset Ratio Equity to Asset Ratio Answer this question below. 2. What kind of conclusions can you draw from your ratio analysis? PFIZER INCOME_STATEMENT3 Form Type: 10-K Period End: Dec 31, 2020 Date Filed: Feb 25, 2021 Table of Contents Consolidated Statements of Income Pfizer Inc. and Subsidiary Companies Year Ended December 31, 2020 $ 41,908 S 41,172 $ 40,825 2019 2018 (MILLIONS, EXCEPT PER COMMON SHARE DATA) Revenues Costs and expenses Cost of sales(a) Selling, informational and administrative expenses(a) Research and development expenses(a) Amortization of intangible assets Restructuring charges and certain acquisition-related costs (Gain) on completion of Consumer Healthcare JV transaction Other (income) deductions--net Income from continuing operations before provision/(benefit) for taxes on income Provision/ benefit) for taxes on income Income from continuing operations 8,692 11,615 9,405 3,436 600 (6) 669 8,251 12.750 8,394 4,462 601 (8,086) 3,314 8.987 12.612 7,760 4.736 1,058 2,077 7.497 477 7,021 11,485 618 10,867 3,594 (266) 3.861 Income from discontinued operations--net of tax 2.631 5,435 7.328 Net income before allocation to noncontrolling interests Less: Net income attributable to noncontrolling interests Net income attributable to Pfizer Inc. common shareholders 9.652 16,302 11,188 36 29 36 9.616 S 16.273 S 11,153 S S 1.26 0.47 1.73 $ Earnings per common share-basic: Income from continuing operations attributable to Pfizer Inc. common shareholders Income from discontinued operations--net of tax Net income attributable to Pfizer Inc. common shareholders Earnings per common share-diluted: Income from continuing operations attrbutable to Pfizer Inc. common shareholders Income from discontinued operations--net of tax Net income attributable to Pfizer Inc. common shareholders 1.95 $ 0.98 2.92 $ 0.65 1.25 1.90 S S 1.24 $ 0.47 1.71 S 1.91 $ 0.96 2.87 $ 0.64 1.23 1.87 S Weighted average shares--basic Weighted average shares--diluted 5.555 5,632 5,569 5,675 5.872 5,977 (a)Exclusive of amortization of intangible assets, except as disclosed in Note 1L Source: Pfizer 10K https://investors.pfizer.com/financials/sec-filings/default.aspx Consolidated Balance Sheets Pfizer Inc. and Subsidiary Companies As of December 31. (MILLIONS, EXCEPT PREFERRED STOCK ISSUED AND PER COMMON SHARE DATA) 2020 2019 $ $ 1.784 10.437 1,121 8,525 7.030 8.040 3.284 3.438 6.772 7.068 2.738 2.357 Assets Cash and cash equivalents Short-term investments Trade accounts receivable, less allowance for doubtful accounts: 2020-9508: 2019-5403 Inventories Current tax assets Other current assets Current assets of discontinued operations and other assets held for sale Total current assets Equity-method investments Long-term investments Property, plant and equipment Identifiable intangible assets Goodwill Noncurrent deferred tax assets and other noncurrent tax assets Other noncurrent assets Noncurrent assets of discontinued operations Total assets 167 4,224 35,087 32,803 16,856 17.133 3.400 3,014 13.000 12,000 28,471 33,038 40,677 48,202 2.383 1,011 4,500 4,100 13,427 154.220 $ 107,504 $ $ Liabilities and Equity Short-term borrowings, including current portion of long-term debt: 2020-$2,002: 2010-$1,462 Trade accounts payable Dividends payable Income taxes payable Accrued compensation and related items 2.703 $ 4.300 2.102 1.040 3,058 16,105 3,887 2,104 080 2,300 12.640 Other current liabilities Current liabilities of discontinued operations Total current liabilities 9,334 2,413 37,304 25.020 Long-term debt Pension benefit obligations Postretirement benefit obligations Noncurrent deferred tax liabilities Other taxes payable Other noncurrent liabilities Total liabilities 37.133 4,706 645 4,063 11.560 6,669 90.750 35,955 5,201 920 5,652 12,120 6,894 104,148 Commitments and Contingencies 17 Preferred stock, no par value, at stated value: 27 shares authorized: issued: 2020-0; 2019-431 : Common stock, S0.05 par value: 12.000 shares authorized; issued: 2020-9,407: 2019-9,369 Additional paid-in capital 470 88,674 468 87,428 Treasury stock, shares at cost: 2020-3,840: 2019-3.835 Retained earnings Accumulated other comprehensive loss Total Pfizer Inc. shareholders' equity Equity attributable to noncontrolling interests Total equity Total liabilities and equity (110.088) (110,801) 96.770 97.870 (11.888) (11,640) 83.238 63,143 235 303 63.473 63,447 154,229 $ 187,504 S Source: Pfizer 10K https://investors.pfizer.com/financials/sec-filings/default.aspx CONSOLIDATED STATEMENTS OF OPERATIONS 2019 2018 $ 12,173 $ 12,556 48,036 60,209 122,512 135,068 Years Ended December 31, 2020 Revenue: Grant revenue $ 528,905 Product sales 199,872 Collaboration revenue 74,618 Total revenue 803,395 Operating expenses: Cost of sales 7,933 Research and development 1,370,339 Selling, general and administrative 188,267 Total operating expenses 1,566,539 Loss from operations (763,144) Interest income 24,715 Other (expense) income, net (6,084) Loss before provision for (benefit from) income taxes (744,513) Provision for (benefit from) income taxes 2,551 Net loss (747,064) Reconciliation of net loss to net loss attributable to common stockholders: Premium paid on repurchase of preferred stock Cumulative preferred stock dividends Net loss attributable to common stockholders ($747,064) Net loss per share attributable to common stockholders, basic and diluted ($1.96) Weighted average common shares used in net loss per share attributable to comm 381,333,059 496,309 109,620 605,929 (545,720) 38,530 (7,526) (514,716) (695) (514,021) 454,082 94,252 548,334 (413,266) 27,023 1,835 (384,408) 326 (384,734) ($514,021) ($1.55) 330,802,136 (4,127) (12,996) ($401,857) ($4.95) 81,114,183 Source: Moderna 10K https://investors.modernatx.com/financial-information/sec-filings?field_nir_sec_form_group_target_id%5B%5D=471&field_nir_sec_date_filed_value=2021#views-exposed-form-widget-sec-filings-table CONSOLIDATED BALANCE SHEETS 2019 $ 235,876 867,124 5,369 19,403 1,032 1,128,804 159,987 201,495 86,414 10,791 1,931 1,589,422 $ December 31, 2020 Assets Current assets: Cash and cash equivalents $ 2,623,850 Investments 1,983,758 Accounts receivable 1,390,560 Inventory 46,527 Prepaid expenses and other current assets 252,152 Restricted cash 1,032 Total current assets 6,297,879 Investments, non-current 638,848 Property and equipment, net 296,889 Right-of-use assets, operating leases 90,201 Restricted cash, non-current 11,053 Other non-current assets 1,880 Total assets $ 7,336,750 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 18,359 Accrued liabilities 469,591 Deferred revenue 3,867,193 Other current liabilities 33,665 Total current liabilities 4,388,808 Deferred revenue, non-current 177,419 Operating lease liabilities, non-current 97,421 Financing lease liabilities, non-current 109,874 Other non-current liabilities 1,853 Total liabilities 4,775,375 Commitments and contingencies (Note 12) Stockholders' equity: Preferred stock, $0.0001 par value; 162,000,000 shares auth- Common stock, par value $0.0001; 1,600,000,000 shares aut 40 Additional paid-in capital 4,801,849 Accumulated other comprehensive gain 3,004 Accumulated deficit (2,243,518) Total stockholders' equity 2,561,375 Total liabilities and stockholders' equity $ 7,336,750 S 7,090 67,652 63,310 5,063 143,115 138,995 93,675 38,689 138 414,612 34 2,669,426 1,804 (1,496,454) 1,174,810 1,589,422 $ Source: Moderna 10K https://investors.modernatx.com/financial-information/sec-filings?field_nir_sec_form_group_target_id%5B%5D=471&field_nir_sec_date_filed_value=2021#views-exposed-form-widget-sec-filings-table