MBAA 518 – Managerial Finance
Dr. Al Rodriguez
has huge profitability ratios of the
order of 80% as gross profit margin and around 25% as net profit margin..docx#_msocom_3″>[ARP3]
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%.
Pfizer is much better than the competitor in terms of the profitability..docx#_msocom_6″>[ARP6]
Gross profit margin
Net Profit Margin
flow from operating activities: 17,054,000NetIncome is just:14,570,000.docx#_msocom_9″>[ARP9]
Adjustments To Net Income
Changes In Accounts Receivables
Changes In Liabilities
Changes In Inventories
Changes In Other Operating Activities
Total Cash Flow From Operating Activities
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
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.
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
the company to operate. Once bad.docx#_msocom_18″>[ARP18] time starts, the company will face a lot
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 Financial Reports. (n.d.).
Retrieved September 26, 2015, from
Pfizer Inc. (n.d.). Retrieved September
26, 2015, from
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
Make sure to label all trables properly as per APA.
Add more substance to the paper.
and use full University name
what does this mean in terms of importance and why?
is a subjective, be more specific with the facts and support why it is so.
can only be explained with capitalization.
is profitability defined? Why is it much better?
the tables. Use column labels.
do CF’s compare with GSK?
only operating activities? What about investing and financing?
there are many, why only talk about depreciation? Which are the others?
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.
to define it before initials can be used. Also, should probably be D/E.
number does not agree with the previous statement.
using complete sentences. Also, with 31.5% debt and 68.5% equity.
Make sure that you check these numbers.
what shis means.
what is meant by this.
what this means.
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
are these factors? Also consider future trends
with facts and figures.
why it is a good dividend policy.