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Those target markets who rely on Johnson & Johnson health and medical needs are mostly patients, doctors, nurses and civilians. Therefore, the company need to sustain their products and services over all these years to ensure that lower income people and underprivileged patients are able to access on their medicines. This however requires the company to balance patient’s access and competitive dynamics in line with their need as the company need to have enough resources to keep on being innovating, creating new and better medicines and at the same time making sure there will be a fair return to the shareholder as well. Johnson & Johnson also work closely with the governments, physicians, non-government organizations and the international donors all around the world to provide its products within an affordable prices to its

1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms?

Current ratio shows that two companies may in a favorable position to obtain short-term credit, but current ratio does not consider the types of current assets these two companies has and how easily they can be turned into cash. Kohl’s has a stronger quick ratio than Dillard’s, indicating that Kohl’s has a little stronger “instant” debt-paying ability than Dillard’s. In other words, Kohl’s has a better ability to convert assets into cash than Dillard’s.

For the financial analysis project, the companies I choose to work with are the Boeing Company (ticker symbol: BA), and Lockheed Martin (ticker symbol: LMT). Both companies belong to the Aerospace industry and maintains a healthy competition among them. In order to compare the financial situations of both companies, the data from most recent years, 2014 and 2015 were used. During this analysis, I intend to compare the current financial positions of both companies in their respective industry.

* Choose five financial ratios, one from each of the five categories described in Chapter 3 of Brigham and Ehrhardt (i.e., liquidity, asset management, financial leverage, profitability, and market value) and look at them over a three-year period. Put your findings in a table with the years across the top (horizontal axis) and the ratios along the side (vertical axis). What do the findings tell you about the

And company D has a high percentage of common stocks, which could be linked to its big market capitalization, characteristic of pharmaceutical manufacturers.

A-Department stores- would fit this financial data because their long-term debt stands outs it shows that this department store must borrow a lot of money to finance their inventories and buildings. They have an average inventory turnover rate which means that they currently efficient. This firm overall is at a good pace and its generates a lot of asset. Its shows little signs of any deffieciency except for the many long term debts- and account payable.

Company H has significantly higher proportion of inventory than company G because they have to maintain stocks of books,

The Inventory turnover is the ratio that will shows how many different times in a year, that the business convert’s it’s inventory into sales. When doing inventory for a business it ensures to make sure that there is enough inventory that will contrast to the amount of sales and the levels that are need. With having higher ratio indicates that business is performing stronger since many of their customers come to purchase their items that are in stock. But having lower turnover ratio can show that there are few customers are purchasing

The three ratios I will use to compare the two companies are the leverage ratio, liquidity ratio and profitability ratio.

pharmaceuticals versus FMCG and identify why branding could be leveraged in the pharmaceutical industry to help it return to strong growth in the future. Second, the authors analyse in detail what branding The

No two companies are the same, even when they are competitors in the same industry or market. Using ratios to compare one company with another could provide misleading information. Businesses may be within the same industry but having different financial and business risk. One company may be able to obtain bank loans at reduced rates and may show high gearing

4.3 Interpret financial statements of given firm below, using appropriate ratios for profitability, liquidity, efficiency and investment, and estimate the formulas for both internal and external comparison.

Ratio analysis involves comparisons because company ratios are compared with those of other firms in the same

Higher ratio indicates that the company is able to replace its inventory at a faster rate and hence the holding cost decreases. The number of inventory turns has decreased for Godrej and this is clearly indicated by the increase in the total inventory of the company. The number has decreased for both Emami and Dabur indicating both have improved their inventory management performance.