Glaxosmith-Kline Astrazeneca Company

This ratio takes into consideration the current assets and current liabilities from the balance sheet

The difference indicates that CanGo is managing its inventory better than Amazon. The ratio helps the company to pinpoint efficient performance if the ratio is high, however, if the ratio is low, it indicates that there maybe overstocking, increase in returns or a loss of sales. The Equity Ratio gives a good indication that the company is performing well if the Debt to Equity Ratio is low. In this case CanGo is not performing at it best because Amazon’s ratio is equal to .44 whilst CanGo’s ratio is .67. If there is high Debt to Equity Ratio it means that the company has financed its growth using debt. Debt can be the result of many factors like borrowed income against stocks or bonds.

Corporations and business organizations have to face lawsuits due to breach of different laws i.e., consumers laws, copyright laws, compensation laws, security laws, antitrust, employment or environmental laws. For violating any of these laws companies have to pay fines and even go bankrupt. Current paper is a report on one such lawsuit that caused GlaxoSmithKline loss of billions of dollars. The author selected "Avandia Lawsuit" to focus in this report. Avandia is a drug used to treat type 2 diabetes and was prepared by GlaxoSmithKline which was approved by U.S Government in 1998 and became best selling drug. Company generated profit through its sale but soon complains arose due to increasing incidences of heart disease and stroke as side effect of the drug.

With adjusted figures, this includes the additional inventory that is being held but being deferred from taxes. Even though that additional inventory is being deferred, it is still liquid and should be included in the current ratio.

In your own words, summarize what the company considers to be the key financial results. Be specific and give detail!

These ratios are used to measure companies’ operating cycle.() Firstly in 2012, the receivables turnover for Oroton and Country Road are 54.86 times per year and 93.02 times per year. This indicates that Country road can collect cash from their customer faster than Oroton. Secondly, the payables turnover for Oroton and Country Road are 12.15 and 8.44 times per years. And it would be easier to analyze day payables which Oroton’s is 30 days and Country road’s is 43 days. This ratio shows that Country road has longer credit term to pay their suppliers than Oroton. Finally, the inventories turnover for Oroton and Country Road are 54.86 and 93.02 times per year. It is obvious that Oroton takes longer time to sell all of their inventories than country road. All of these ratios indicate that Country road has shorter operating cycle than Oroton. Therefore, they tend to have higher performance in terms of liquidity because they can generate cash faster.

This is in addition to the scope of contract of Easy General Services Corp.to their client International Pharmaceuticals Inc.

This is due to the fact that inventory and accounts receivable are left out of the equation. Based on the cash ratio, this company carries a low cash balance. This may be an indication that they are aggressively investing in assets that will provide higher returns. We need to make sure that we have enough cash to meet our obligations, but too much cash reduces the return earned by the company.

Days inventory are the same in both companies: on average they turn over their inventories in two months. Analysis shows that both companies have a positive Cash Conversion Cycle (CCC), which means that they require external sources of financing for their working capital needs. In both cases, this gap is covered with debt (100% short term debt in the case of WM, and both short term and long term debt in the case of SRC).

The financial statements included tend to combine cash and marketable securities into a category labeled “cash and cash equivalents”. If the cash ratio is recalculated using this value instead of simply cash than the ratio improves to 1.10, which shows much stronger liquidity capabilities.

The author has chosen to analyse and evaluate the business and financial performance of AstraZeneca.

The capitalization ratio compares the debt portion of the company’s capital structure and the equity part and is expressed in percentage terms. While evaluating company, keep in mind that a lower percentage means a healthy equity and is more desirable.

What is the financial and business performance of Alliance Pharmaceuticals Plc in comparison with its competitor GW Pharmaceuticals Plc?

GSK is the 2nd largest pharmaceutical firm in the world, and the largest in the UK by sales and profits, it is responsible for 7% of the worlds pharmaceutical market, and has its stocks listed both in UK and US (O 'Rourke, 2002). The origin of the so called blockbuster model, is partly linked with Glaxo (as it was previously known). In the early 80’s, then Glaxo brought to light their first blockbuster drug, Zantac, which was an anti-ulcer drug, which was very similar to the a pre existing drug Tagamet (first ever blockbuster) sold by Smith Kline & French, their completion at the time (MONTALBAN and SAKINÇ, 2011). The introduction of this drug, brought about an increasing sales force in the US, the company soon became dependent on the drug, because it represented a large part of their profit. In 2002, 8 blockbusters of GSK contributed to $14.240 million sales revenue, taking up 53% of its total ethical sales (Froud et al 2006). However, due to the nature of the pharmaceutical industry, the patent began to expire, in other to avoid the patent cliff, Glaxo merged with Wellcome in 1995, which ensured a growing number of sales force, and with Beecham in 2000 (Froud et al., 2006) this merger, boosted the confidence of investors, by growing the business inorganically. For Big Pharma, this block buster model is very profitable, because with the high cost of R&D, the drugs are able to generate ample profit, to cover the sunk costs

Company A has higher receivables (12.8%) than Company B, 8.1%. This is probably because Company A distributes their products to institutions like hospitals, clinics and etc. Institutions take