Welcome to the Most Reliable Essay writing Service Online

Finance-MBAA 518 – Managerial Finance

by | Mar 19

Place your order today at a 15% discount

Final Paper
Ivan
A. Primak.docx#_msocom_1″>[ARP1]
Embry
Riddle.docx#_msocom_2″>[ARP2] University
MBAA 518 – Managerial Finance
Instructor:
Dr. Al Rodriguez
September
28, 2015

Profitability
Pfizer Inc.
has huge profitability ratios of the
order of 80% as gross profit margin and around 25% as net profit margin..docx#_msocom_3″>[ARP3]
The company
is highly profitable.docx#_msocom_4″>[ARP4]. As compared to the competitor, GlaxoSmithKline,
they are much better.docx#_msocom_5″>[ARP5]. For GSK same ratios are 70% and 17%.
Hence,
Pfizer is much better than the competitor in terms of the profitability..docx#_msocom_6″>[ARP6]

Gross profit margin

80.79%

70.13%

Net Profit Margin

24.70%

17.27%.docx#_msocom_7″>[ARP7]

Cash Flows.docx#_msocom_8″>[ARP8]
For Pfizer:
Total cash
flow from operating activities: 17,054,000NetIncome is just:14,570,000.docx#_msocom_9″>[ARP9]

Net Income

14,570,000

Depreciation

7,611,000

Adjustments To Net Income

-3,213,000

Changes In Accounts Receivables

275,000

Changes In Liabilities

-2,859,000

Changes In Inventories

-631,000

Changes In Other Operating Activities

1,273,000

Total Cash Flow From Operating Activities

17,054,000

There are
many adjustments that need.docx#_msocom_10″>[ARP10]to be done from net income to calculate
total cash flow from operating activities. First, all the non-cash activities,
such as depreciation, must be added like
back Then all the adjustments would be done. After that change in the assets
and liabilities like PPE,receivables, payables, etc. would be added or subtracted
to get the final cash flow.
Liquidity and Capital
Structure:

Current
ratio

2.15

0.99

Quick
Ratio

1.58

0.67

Pfizer has a good advantage in terms of the liquidity. The company is highly
liquid given the current and quick ratios..docx#_msocom_11″>[ARP11]The current ratiofor the company is more than 2. Even after deleting the
inventory part to calculate the quick ratio as 1.58. It clearly signifies that
the company would be able to meet all the
obligations even in the worst case scenario of inventory stalling. Even if
inventory does not get sold off, they will be able to meet all the liabilities
fully and after that they will have 50% left.
Comparing with GSK, Pfizer is in
a much better situation. For GSK, both the ratios are less than 1. That means
they won’t be able to meet the obligations in the short term. They need to
raise the capital from somewhere to pay for the liabilities.
Capital Structure

DE
ratio

0.46

DE.docx#_msocom_12″>[ARP12] Ratio for the company is just 0.46. That
means for every $1 of equity they have a
liability of less than half a dollar.Approximately31.5%.docx#_msocom_13″>[ARP13] is debt and rest is equity.docx#_msocom_14″>[ARP14]. This.docx#_msocom_15″>[ARP15] is a
good mix of capital. This mix clearly
illustrates less financial risk for the company.
DE for GSKis greater than 253. They have huge.docx#_msocom_16″>[ARP16] debt as compared to the equity they have invested. There is a huge
risk.docx#_msocom_17″>[ARP17]for
the company to operate. Once bad.docx#_msocom_18″>[ARP18] time starts, the company will face a lot
of problems.
Stock recommendation
As of september 28, 2015, Currently Pfizer is trading at around $32.90.docx#_msocom_19″>[ARP19].
There are many factors that support investment
in the company.docx#_msocom_20″>[ARP20]:
Return on Equity is around 18%and it is
estimated to grow further.docx#_msocom_21″>[ARP21], giving the shareholders much higher returns. They
have a good dividend policy.docx#_msocom_22″>[ARP22].docx#_msocom_23″>[N23]; hence for a person looking for liquidity,
this is a good stock. Pfizer’s dividend was cut in 2009, but has increased
annually since then. Pfizer has been paying dividends since 1980 and has not
missed one since then.The revenue is set to increase following the major breakthrough and the new patents that the
company received recently. This makes
this company more attractive. At the time when the industry is struggling to
keep the profitability, Pfizer has not only been able to maintain market share but also maintained the trust
among the consumers.Therefore, it is strongly recommended to buy stocks of
Pfizer.

References
Pfizer Financial Reports. (n.d.).
Retrieved September 26, 2015, from
http://www.pfizer.com/investors/financial_reports/financial_reports

Pfizer Inc. (n.d.). Retrieved September
26, 2015, from
http://www.google.com/finance?q=NYSE:PFE&ei=RXgJVqikNYXCea3woKgL

.docx#_msoanchor_1″>[ARP1]Ivan,
you are using simple, sort-worded sentences. Please try to be more explicit and
support all ascertions with the source. Try to write a more comprehensive
report, with more detail.

Do not just indicate something without also providing
the support.

Make sure to label all trables properly as per APA.

Add more substance to the paper.

Thanks, Al
.docx#_msoanchor_2″>[ARP2]Hyphenate
and use full University name
.docx#_msoanchor_3″>[ARP3]So
what does this mean in terms of importance and why?
.docx#_msoanchor_4″>[ARP4]Highly
is a subjective, be more specific with the facts and support why it is so.
.docx#_msoanchor_5″>[ARP5]Better
can only be explained with capitalization.
.docx#_msoanchor_6″>[ARP6]How
is profitability defined? Why is it much better?
.docx#_msoanchor_7″>[ARP7]Label
the tables. Use column labels.
.docx#_msoanchor_8″>[ARP8]How
do CF’s compare with GSK?
.docx#_msoanchor_9″>[ARP9]Why
only operating activities? What about investing and financing?
.docx#_msoanchor_10″>[ARP10]If
there are many, why only talk about depreciation? Which are the others?
.docx#_msoanchor_11″>[ARP11]What
does 2.15 mean in relationship to others in the industry? What is the
difference between 2.15 and 0.99? Same for the quick ratio.
.docx#_msoanchor_12″>[ARP12]Need
to define it before initials can be used. Also, should probably be D/E.
.docx#_msoanchor_13″>[ARP13]This
number does not agree with the previous statement.
.docx#_msoanchor_14″>[ARP14]Write
using complete sentences. Also, with 31.5% debt and 68.5% equity.

Make sure that you check these numbers.
.docx#_msoanchor_15″>[ARP15]Unclear
antecedent.
.docx#_msoanchor_16″>[ARP16]Define
what shis means.
.docx#_msoanchor_17″>[ARP17]Define
what is meant by this.
.docx#_msoanchor_18″>[ARP18]Define
what this means.
.docx#_msoanchor_19″>[ARP19]If
the paper is read one year from today, it is no longer currently, therefore,
say something like.

As of the MMDDYYYY the stock is rading at $xx.xx

.docx#_msoanchor_20″>[ARP20]Which
are these factors? Also consider future trends
.docx#_msoanchor_21″>[ARP21]Support
with facts and figures.
.docx#_msoanchor_22″>[ARP22]Define
why it is a good dividend policy.
.docx#_msoanchor_23″>[N23]

  

CLIENT TESTIMONIALS

The Service Is Okay. I won’t Complain

The writers on the website are courteous and the customer service responds quickly. My paper was handled well; They promised...

Writers here are very professional and are native British

Thanks a lot for helping me out with my PhD Thesis, Writers here are very professional and are native British!!

Jack, The United Kingdom

Very Very Helpful, and On time.

Very Very Helpful, and On time.

Adelio M, Spain

I scored complete A’s in 3 out of four courses

I scored complete A’s in 3 out of four courses

Anonymous, Illinoi Chicago

CLICK HERE  To order your paper

About Essaysmiths Assignment writing service

We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.

How It Works

To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Are there Discounts?

All new clients are eligible for upto 20% off in their first Order. Our payment method is safe and secure.

 CLICK HERE to Order Your Assignment

 

Recently Posted Questions.