proportionalitys can be calculated from the information shown on a companys pecuniary statements. The trends shown over several periods can be hire to render inferences about a companys finances, and operating efficiency. Financial ratios nuclear number 18 not only used to make comparisons within a company, but also against other businesses in the same industry. This piece will focus on the financial ratios of Pfizer Inc. Pfizer Inc. discovers, develops, manufactures, and markets leading prescription(prenominal)(prenominal) medicines for humans and animals and many of the worlds best-known consumer brands (Pfizer, 2005). Pfizer is the manufacturer of prescription drugs such(prenominal) as Clebrex, Lipitor, Viagra, and Zoloft. Financial Ratios for Pfizer, Inc. from Mergent Online         2004         2003         2002 Profitability Ratios                         income tax return on candor %         16.6         2.51         46.02 be make grow on Assets %         9.16         1.4         19.81 Return on enthronization         181.71         90.51         344.33 earn valuation account         .086         .078         .088 Operating Margin %         28.11         15.21         36.07 Net Profit Margin         26.67         7.22         36.07 Liquidity Ratios                         Quick Ratio         1.13         .89         1.01 Current Ratio         1.5         1.26         1.34 working Capita/Total Assets         .11         .05         .13 Debt Ratios                         To! tal Debt to Equity         .11         .09         .16 Long Term Debt to Assets         .
06         .05         .07 competency Ratios                         Total Assets/Revenue         2.4         2.6         1.4 Revenues/Working bang-up         3.97         7.43         5.2 The meaning of these ratios is as follows. Profitability ratios focus on the earnings of a firm. Return on equity is a measure of the put acros s on shareholders equity. Return on assets measures acquireability relative to hit assets. Return on assets shows what income was generated from the assets of the firm. Return on investment shows the profit or loss from investment in a firm. It is precedent from an investors viewpoint to have this value as high as possible. arrant(a) margin shows the portion of each dollar earned... If you expect to get a full essay, order it on our website:
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