Answer To: Just need the following financial statements ratios for Celgene Corporation for the fiscal year...
Khushboo answered on Jun 14 2021
Title Page
Complete your Title page on this tab.
Please include your name, the course, the date,
your instructor's name, and the title for the project.
Joceline Castillo
ACCT 503
October 21st, 2018
Professor Hinton
Profiles
Complete one paragraph, profiling each company's business, including information such as brief histories, where each company is located, number of employees, the products each company sells, and so forth. Please reference any websites that you used for the profiles on the Bibliography tab.
Celgene came about in 1986 by David Stirling and Sol Barer. Just like Gilead, they are also an independent biotechnology company, but they focus on development and commercialization of innovative therapies designed to treat cancer and immune-inflammatory related diseases in patients with limited treatment options." They have 3 main corporation sites, one beng in Summit, NJ (n.d.)
Gilead was founded in 1987 by Michael Riordan. Gilead relocates to Foster City, CA after gaining $2 million which when they ended up in CA, it went to $10 milllion. "Gilead is a biotechnology company specializing in developing and marketing drugs to treat anitviral diseases" (Gilead Sciences).
Ratios
Use this Excel spreadsheet to compute ratios; show your computations for all ratios on this tab, and also include your commentary.
The 2017 financial statements used to calculate these ratios are available in the Investor Relations sections of the Tootsie Roll and Hershey websites.
Celgene Gilead Interpretation and comparison between the two companies' ratios (reading Chapter 13 will help you prepare the commentary)
The comparison of the ratios is an important part of the project. A good approach is to briefly explain what the ratio tells us. Indicate whether a higher or lower ratio is better. Then compare the two companies on this basis. Remember that each ratio below requires a comparison.
Earnings per Share of Common Stock (basic - common) As given in the income statement $2.57 $ 10.08
Current Ratio Current Assets $10,868 = 3.67 $19,588 = 2.12 This ratio woud be best higher because it shows whether a company has enough resources to meet short-term obligations, which is why Celgene has a higher advantage compared to Gilead.
Current Liabilities $2,959 $9,219
Gross (Profit) Margin Percentage Gross Margin $10,747 = 96.1% $26,129 = 87.2% Gross profit margin is the percentage of revenue that the company will have after deducting the cost of goods sold. Celgene his the advantage by having close to 100%.
Net Sales $11,185 $29,953
Rate of Return (Net Profit Margin) on Sales Net Income $1,999 = 17.9% $13,502 = 44.4% It is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost. Gilead shows the higher ratio meaning they are in better standings then Celgene.
Net Sales $11,185 $30,390
Inventory Turnover Cost of Goods...