Accessing SEC reports and Calculating Ratios
Access the 2012 financial reports at the SEC
websites for Pfizer Inc. and Merck & Co., two close competitors in the pharmaceutical industry.
Pfizer’s financial reports are available here: Pfizer 2012 financial reports
Merick’s financial reports are available here: Merck 2012 financial reports
a. Use data from the companies’ balance sheets and income statements to complete the following table.
$ millions Pfizer Merck Total assets $Answer
b. Compute the ROA and the components for profit margin and asset turnover for each company.
Round answers to two decimal places (example: 0.12345 = 12.35%).
To simplify computations,
use year-end balance for total assets
to compute ratios.
Pfizer Merck Return on assets (ROA) Answer
% Profit margin (PM) Answer
% Asset turnover (AT)Answer