Overview- Assume you have just earned an MBA and taken aposition as an analyst...

90.2K

Verified Solution

Question

Accounting

Overview- Assume you have just earned an MBA and taken aposition as an analyst with an investment bank. You are assigned toa team of analysts responsible for monitoring pharmaceuticalcompanies. Your report would be used in formulating buy/sellrecommendations on these companies.
Assignment- Select Teva Pharmaceutical Industries, Ltd. andMerck & Co. for comparative purposes. Prepare a three?yearcomparative report and financial analysis on the two companiesusing the most recent financial data from each company's annualfinancial statements.
Requirements The report must include:
1. Description and background of companies and product lines
2. How they compare:
a) Financially 1. Working capital 2. Current ratio 3. Liquidity4. Financial leverage 5. R&D Expenditures 6. Profitability 7.Out?of?theordinaryevents/transactions 8. Cash flow analysis 9.Return on assets (ROA) 10. Return on equity (ROE)
b) Operationally 1. Number of days in accounts receivable andaccounts receivable turnover 2. Number of daysin inventory andinventory turnover 3. R&D percentage ofrevenue 4. Organicgrowth vs. growth through mergers and acquisitions 5. Off?balancesheetobligations
3. Recommendations on how the companies could improve ROE
4. Conclusion as to financial strengths and weaknesses of eachcompany

Answer & Explanation Solved by verified expert

4.1 Ratings (487 Votes)

A Since in this question the financial statements of both the companies are missing i would answer this question from conceptual point of view Part 1 In this part you can give a description of Teva pharceutical campanu and Merk Co as follows History write a brief history of both the companies as to how the companies started what was the idea behind the company setup what group of consumers the company targest and what was its original product range Research and development Under this head write about the research and develpment conducted by both the industries on their product range Since these are pharmaceutical companies research and development plays a very vital role for such industries because it concerns with the health of people Product approval This is another vital point for such industries as their products require proper testing and approvals before being launched in the market for human consumption Under this head mention the various tests which the products have gone through and also mentions the approvals gathered from various boards and government for launching of such products Global sales Under this head write about the sale pattern of both the companies around the world Write about the presence of the companies in the world market and their product sale pattern in different countries and the response from the consumers Mention a comparative study of sale patterns of both companies Marketing Under this head write about marketing strategies of both companies and how it affects their sales patterns Write in details about the marketing strategies and which one works the most Write a comparative study about marketing strategies both companies which one is better and why Controversy about drug marketing and lobbying Under this head write about any controversies which the companies have been involved with and also about their strategy to handle the same Mention about the regulatory issues faced by the companys for their various products and again the mitigation strategies Also write about drug frauds prevalent in the pharmaceutical industry Part 2 Under this compare both the industries as asked in the question I am mentioning here the basic formulas of the questions asked their meaning and the way of comparison Financially 1 Working Capital Working capital is a way for businesses to see if they have the ability to pay See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member