Financial Analysis; Liquidity, Asset Efficiency, Profitability and Growth

Paper instructions:

Financial Analysis; Liquidity, Asset Efficiency, Profitability and Growth

Using the Financial Statements for Pfizer (PFE) and Merck (MRK) that are provided complete the following problems.

Complete this assignment  using an Excel spreadsheet.
Please show your work (in Excel this means make sure the formulas, not just the numbers, are in the cells)

Merck & Company (MRK)

1. Liquidity: Calculate the current ratio, quick ratio, and networking capital for each of the last five years.

2. Analyze the liquidity trend (by individual ratio and in total) and determine whether the liquidity has been volatile, improved, declined, or stayed the same during this period.

3.  Efficiency: Calculate the inventory turnover, accounts receivable turnover, days sales outstanding, and total asset turnover for each of the last five years.

4.  Analyze the efficiency trend (by individual ratio and in total) and determine whether the asset efficiency has been volatile, improved, declined, or stayed the same during this period.

5. Profitability: Calculate the gross profit margin, operating profit margin, net profit margin, return on assets, and return on equity for each of the last five years.

6.  Analyze the profitability trend (by individual ratio and in total) and determine whether the asset efficiency has been volatile, improved, declined, or stayed the same during this period.

7.  Calculate the growth in revenue and net income for each of the last four years.

8.  Analyze the growth trend (by revenue and net income) and describe the trend growth.

Pfizer (PFE)
9. Liquidity: Calculate the current ratio, quick ratio, and networking capital for each of the last five years.

10. Analyze the liquidity trend (by individual ratio and in total) and determine whether the liquidity has been volatile, improved, declined, or stayed the same during this period.

11.  Efficiency: Calculate the inventory turnover, accounts receivable turnover, days sales outstanding, and total asset turnover for each of the last five years.

12.  Analyze the efficiency trend (by individual ratio and in total) and determine whether the asset efficiency has been volatile, improved, declined, or stayed the same, during this period.

13. Profitability: Calculate the gross profit margin, operating profit margin, net profit margin, return on assets, and return on equity for each of the last five years.

14.  Analyze the profitability trend (by individual ratio and in total) and determine whether the asset efficiency has been volatile, improved, declined, or stayed the same during this period.

15.  Calculate the growth in revenue and net income for each of the last four years.

16.  Analyze the growth trend (by revenue and net income) and describe the trend growth.

Merck & Company financial statements:  Merck&CoInc(MRK)_FinancialStatements.xlsxPreview the documentView in a new window

Pfizeer financial statements:  PfizerInc(PFE)_FinancialStatements.xlsxPreview the documentView in a new window