What is the Interpretation between the two companies' ratios for The 2015 & 2016 Celgene &...

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What is the Interpretation between the two companies' ratios forThe 2015 & 2016 Celgene & 2015 & 2016 Gilead Financialstatements used to calculate these ratios.
GileadSciences Inc. CelgeneCorp.
Earnings per Share of CommonStock (basic - common) As given in the income statement $ 10.08 $ 2.57
Current Ratio Current Assets $20,445.0 = 2.22 $10,867.5 = 3.67
Current Liabilities $9,219.0 $2,959.2
Gross (Profit) MarginPercentage GrossMargin $26,129.0 = 86.0% $10,746.6 = 96.1%
Net Sales $30,390.0 $11,184.6
Rate of Return (Net ProfitMargin) on Sales NetIncome $13,488.0 = 44.4% $1,999.2 = 17.9%
Net Sales $30,390.0 $11,184.6
InventoryTurnover Cost ofGoods Sold $4,261.0 2.4 $438.0 0.9
Average Inventory $1,771.0 times $470.7 times
Days' Inventory Outstanding(DIO) 365Days $365.0 = 152 $365.0 = 392
Inventory Turnover $2.4 days $0.9 days
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Gilead Sciences Inc Celgene Corp Earnings per Share of Common Stock basic common As given in the income statement 1008 257 Gilead is providing better returns to common stock holders as their stock holders have allocable earning of 1008 per share as compared to 257 per share offered by Celgene Current Ratio Current Assets 2044500 222 1086750 367 Higher current ration of Celgene shows better See Answer

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		GileadSciences Inc.			CelgeneCorp.

Earnings per Share of CommonStock (basic - common)	As given in the income statement			$ 10.08			$ 2.57


Current Ratio	Current Assets	$20,445.0	=	2.22	$10,867.5	=	3.67
	Current Liabilities	$9,219.0			$2,959.2


Gross (Profit) MarginPercentage	GrossMargin	$26,129.0	=	86.0%	$10,746.6	=	96.1%
	Net Sales	$30,390.0			$11,184.6


Rate of Return (Net ProfitMargin) on Sales	NetIncome	$13,488.0	=	44.4%	$1,999.2	=	17.9%
	Net Sales	$30,390.0			$11,184.6


InventoryTurnover	Cost ofGoods Sold	$4,261.0		2.4	$438.0		0.9
	Average Inventory	$1,771.0		times	$470.7		times


Days' Inventory Outstanding(DIO)	365Days	$365.0	=	152	$365.0	=	392
	Inventory Turnover	$2.4		days	$0.9		days

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