Reference no: EM132507178
Question 1: What will be the best information to provide in a brief summary on how to compare of each of the following company's performance for Measuring ability to pay current liabilities and Measuring turnover category of ratios listed below. It should be focus on major differences as compared to each company's performance.
Celgene Gilead
Earnings per Share of Common Stock (basic - common) $10.08 $2.57
Current Ratio Current Assets $20,445= 2.22 $10,868= 3.67
Current Liabilities $9,219 $2,959
Gross (Profit) Margin Percentage Gross Margin $26,129= 86.0 $10,747= 96.1%
Net Sales $30,390 $11,185
Rate of Return (Net Profit Margin) on Sales Net Income $13,488 = 44.4% $1,999 =17.9%
Net Sales $30,390 $11,185
Inventory Turnover Cost of Goods Sold $4,261= 2.4 $438 = 0.9
Average Inventory $1,771 times $471 times
Days' Inventory Outstanding (DIO) 365 Days 365= 152 365 = 392
Inventory Turnover 2.4 days 0.9 days
Accounts Receivable Turnover Net Credit Sales $501= 0.3 $3,666= 0.8
Average Net Accounts Receivable $1,621 $4,514
Days' Sales Outstanding (DSO) 365 = 1,181.4 365= 449.4
Receivable Turnover Ratio 0.3 days 0.8 days
Asset Turnover Net Sales $112,292= 4.08 $30,390= 0.56
Average Total Assets $27,525 $54,347
Rate of Return on Sales times Asset Turnover ROA Rate of Return on Sales times Asset Turnover
$1,999= 181.1% $13,488= 10.0%
$27,525 $54,347