Tabla 1 Company Name Year 2018 Chemicals and Allied Products Industry Ratios Solvency or Debt Ratios Merck J J 2018 Debt ratio 0 47 Debt to equity ratio 0 38 Interest coverage ratio 9 43 Liquidity Ratios Current ratio 3 47 Quick ratio 2 12 Cash ratio 2 24 Profitability Ratios Profit margin 93 4 ROE (Return on equity), after tax 248 5 ROA (Return on assets) 146 5 Gross margin 55 3 Operating margin (Return on sales) 42 9 Activity or Efficiency Ratios Asset turnover 1 08 Receivables turnover (days) 16 Inventory turnover (days) 36 Price Ratios Dividend Payout Ratio 0 15 Estados Financieros Johnson Johnson (JNJ) Balance Sheet December 31, 2018 ($ in millions) ASSETS Current Assets Cash, cash equivalents and short term investments $19,687 Receivables 14,098 Inventory 9,549 Other current assets 2,699 Total Current Assets 46,033 Noncurrent Assets Property, plant and equipment, net 17,035 Net Intangible assets (including goodwill) 78,064 Other noncurrent assets 11,822 Total Noncurrent Assets 106,921 TOTAL ASSETS $152,954 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable 7,537 Accrued liabilities 11,517 Short term debt 2,800 Other noncurrent liabilities 9,376 Total current liabilities 31,230 Noncurrent Liabilities Long term debt and lease obligation 27,684 Liabilities, other than long term debt (pension, deferred tax, other) 34,288 Total noncurrent liabilities 61,972 TOTAL LIABILITIES 93,202 Stockholders'equity Common stock 3,120 Treasury stock, value 34,362 Accumulated other comprehensive loss 15,222 Retained earnings 106,216 Total stockhholders'equity 59,752 Total Liabilities and Stockholders'Equity $152,954 Johnson Johnson (JNJ) Income Statement For period ending December 31, 2018 ($ in millions) Revenues Revenues, net $81,581 Cost of Revenue 27,091 Gross profit 54,490 Operating Expenses 34,692 Operating Income 19,798 Nonoperating income (expense) 794 Interest and debt expense 1,005 Income from continuing operations before income taxes 17,999 Income tax expense 2,702 Net Income available to stockholder $15,297 Dividends paid to Stockholders 9,494 Retained Earnings $5,803 Merck Company, Inc (MRK) Balance Sheet December 31, 2018 ($ in millions) ASSETS Current Assets Cash, cash equivalents and short term investments $8,864 Receivables 7,071 Inventory 5,440 Other current assets 4,500 Total Current Assets 25,875 Noncurrent Assets Property, plant and equipment, net 13,291 Net Intangible assets (including goodwill) 29,684 Other noncurrent assets 13,787 Total Noncurrent Assets 56,762 TOTAL ASSETS $82,637 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payable 3,318 Accrued liabilities 3,429 Short term debt 5,308 Other noncurrent liabilities 10,151 Total current liabilities 22,206 Noncurrent Liabilities Long term debt and lease obligation 19,806 Liabilities, other than long term debt (pension, defferred tax, other) 13,743 Total noncurrent liabilities 33,549 TOTAL LIABILITIES 55,755 Stockholders'equity Common stock 1,788 Treasury stock, value 50,929 Additional paid in capital 38,808 Accumulated other comprehensive loss 5,545 Retained earnings 42,579 Stockholders'equity attributable to noncontrolling interest 181 Total stockhholders'equity 26,882 Total Liabilities and Stockholders'Equity $82,637 Merck Company, Inc (MRK) Income Statement For period ending December 31, 2018 ($ in millions) Revenues Revenues, net $42,294 Cost of Revenue 13,509 Gross profit 28,785 Operating Expenses 20,486 Operating Income 8,299 Nonoperating income (expense) 402 Interest and debt expense 772 Other undisclosed income (loss) from continuing operations before income taxes 772 Income from continuing operations before income taxes 8,701 Income tax expense 2,508 Net Income available to stockholder $6,193 Dividends paid to Stockholders 5,172 Retained Earnings $1,021 Instrucciones A Utiliza los estados financieros que se proveen para completar el anlisis de las compaas utilizando las razones financieras ( financial ratios ) que se requieren en la Tabla 1 B Completa la Tabla 1 Download Tabla 1segn requerido en la instruccin 1 y utilzala como referencia para contestar las preguntas de anlisis Calcula los indicadores financieros de las firmas para el ao 2018 y llena los espacios marcados en la tabla (30 puntos) Compara el desempeo de ambas empresas entre s, para cada uno de los indicadores calculados y determina si es necesario hacer algn ajuste o ajustes para posicionar mejor a la firma con el menor desempeo, de cara al cierre del prximo ao fiscal Explica qu ajustes propones y por qu (20 puntos) En la Tabla 1, tambin se proveen los indicadores financieros de la industria de qumicos y productos relacionados (Chemicals and Allied Products) para el ao 2018 Esto te permitir comparar el desempeo de ambas firmas con la industria en la que compite para el mismo ao (20 puntos) Entiendes que el desempeo de las firmas es superior al desempeo promedio de sus competidores en el mercado Justifica tu respuesta Qu ajustes o cambios recomendaras para hacer cada una de las firmas ms atractiva para los accionistas y dems interesados en stas Justifica tu contestacin De tener la oportunidad, en cul de las firmas invertiras basado en el resultado de tu anlisis de ambas empresas y la comparacin con la industria Si no invertiras, explica tus razones de acuerdo con los resultados obtenidos (15 puntos)

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Tabla 1: Company Name: Year 2018 Chemicals and Allied Products Industry Ratios .............. Solvency or Debt Ratios Merck J&J 2018 Debt ratio .... .... 0.47

Tabla 1:

Company Name:	Year 2018	Chemicals and Allied Products Industry Ratios
..............
Solvency or Debt Ratios	Merck	J&J	2018
Debt ratio	....	....	0.47
Debt-to-equity ratio	....	....	0.38
Interest coverage ratio	....	....	-9.43
Liquidity Ratios
Current ratio	....	....	3.47
Quick ratio	....	....	2.12
Cash ratio	....	....	2.24
Profitability Ratios
Profit margin	....	....	-93.4%
ROE (Return on equity), after tax	....	....	-248.5
ROA (Return on assets)	....	....	-146.5
Gross margin	....	....	55.3%
Operating margin (Return on sales)	....	....	-42.9%
Activity or Efficiency Ratios
Asset turnover	....	....	1.08
Receivables turnover (days)	....	....	16
Inventory turnover (days)	....	....	36
Price Ratios
Dividend Payout Ratio	....	....	0.15

Estados Financieros

Johnson & Johnson (JNJ) Balance Sheet

December 31, 2018 ($ in millions)

ASSETS

Current Assets

Cash, cash equivalents and short-term investments

$19,687

Receivables

14,098

Inventory

9,549

Other current assets

2,699

Total Current Assets:

46,033

Noncurrent Assets

Property, plant and equipment, net

17,035

Net Intangible assets (including goodwill)

78,064

Other noncurrent assets

11,822

Total Noncurrent Assets:

106,921

TOTAL ASSETS:

$152,954

LIABILITIES AND EQUITY

Liabilities

Current Liabilities

Accounts Payable

7,537

Accrued liabilities

11,517

Short term debt

2,800

Other noncurrent liabilities

9,376

Total current liabilities:

31,230

Noncurrent Liabilities

Long-term debt and lease obligation

27,684

Liabilities, other than long-term debt (pension, deferred tax, other)

34,288

Total noncurrent liabilities:

61,972

TOTAL LIABILITIES:

93,202

Stockholders'equity

Common stock

3,120

Treasury stock, value

-34,362

Accumulated other comprehensive loss

-15,222

Retained earnings

106,216

Total stockhholders'equity

59,752

Total Liabilities and Stockholders'Equity:

$152,954

Johnson & Johnson (JNJ) Income Statement
For period ending December 31, 2018 ($ in millions)

Revenues
Revenues, net	$81,581
Cost of Revenue	-27,091
Gross profit:	54,490
Operating Expenses	-34,692
Operating Income:	19,798
Nonoperating income (expense)	-794
Interest and debt expense	-1,005
Income from continuing operations before income taxes:	17,999
Income tax expense	-2,702
Net Income available to stockholder	$15,297
Dividends paid to Stockholders	-9,494
Retained Earnings	$5,803

Merck & Company, Inc. (MRK) Balance Sheet
December 31, 2018 ($ in millions)
ASSETS
Current Assets
Cash, cash equivalents and short-term investments	$8,864
Receivables	7,071
Inventory	5,440
Other current assets	4,500
Total Current Assets:	25,875
Noncurrent Assets
Property, plant and equipment, net	13,291
Net Intangible assets (including goodwill)	29,684
Other noncurrent assets	13,787
Total Noncurrent Assets:	56,762
TOTAL ASSETS:	$82,637
LIABILITIES AND EQUITY
Liabilities
Current Liabilities
Accounts Payable	3,318
Accrued liabilities	3,429
Short term debt	5,308
Other noncurrent liabilities	10,151
Total current liabilities:	22,206
Noncurrent Liabilities
Long-term debt and lease obligation	19,806
Liabilities, other than long-term debt (pension, defferred tax, other)	13,743
Total noncurrent liabilities:	33,549
TOTAL LIABILITIES:	55,755
Stockholders'equity
Common stock	1,788
Treasury stock, value	-50,929
Additional paid in capital	38,808
Accumulated other comprehensive loss	-5,545
Retained earnings	42,579
Stockholders'equity attributable to noncontrolling interest	181
Total stockhholders'equity	26,882
Total Liabilities and Stockholders'Equity:	$82,637

Merck & Company, Inc. (MRK) Income Statement
For period ending December 31, 2018 ($ in millions)

Revenues
Revenues, net	$42,294
Cost of Revenue	-13,509
Gross profit:	28,785
Operating Expenses	-20,486
Operating Income:	8,299
Nonoperating income (expense)	402
Interest and debt expense	-772
Other undisclosed income (loss) from continuing operations before income taxes:	772
Income from continuing operations before income taxes:	8,701
Income tax expense	-2,508
Net Income available to stockholder	$6,193
Dividends paid to Stockholders	-5,172
Retained Earnings	$1,021

Instrucciones:

A. Utiliza los estados financieros que se proveen para completar el anlisis de las compaas utilizando las razones financieras (financial ratios) que se requieren en la Tabla 1.

B. Completa la Tabla 1 Download Tabla 1segn requerido en la instruccin 1 y utilzala como referencia para contestar las preguntas de anlisis:

Calcula los indicadores financieros de las firmas para el ao 2018 y llena los espacios marcados en la tabla. (30 puntos)
Compara el desempeo de ambas empresas entre s, para cada uno de los indicadores calculados y determina si es necesario hacer algn ajuste o ajustes para posicionar mejor a la firma con el menor desempeo, de cara al cierre del prximo ao fiscal. Explica qu ajustes propones y por qu. (20 puntos)
En la Tabla 1, tambin se proveen los indicadores financieros de la industria de qumicos y productos relacionados (Chemicals and Allied Products) para el ao 2018. Esto te permitir comparar el desempeo de ambas firmas con la industria en la que compite para el mismo ao. (20 puntos)
- Entiendes que el desempeo de las firmas es superior al desempeo promedio de sus competidores en el mercado? Justifica tu respuesta.
- Qu ajustes o cambios recomendaras para hacer cada una de las firmas ms atractiva para los accionistas y dems interesados en stas? Justifica tu contestacin.
De tener la oportunidad, en cul de las firmas invertiras basado en el resultado de tu anlisis de ambas empresas y la comparacin con la industria? Si no invertiras, explica tus razones de acuerdo con los resultados obtenidos (15 puntos)