Analyze key profitability ratio structure and trends
Tasks
1. See attached financial statement and ratio workbooks for the following companies
a. Abbott Laboratories
b. Bristol-Myers Squibb
c. Glaxosmithklien
d. Eli Lilly & Co.
e. Merck & Co.
f. Novartis
g. Pfizer
2. Use Eli Lilly & Co. pharmaceutical company, to complete the following:
A. The product and service of Eli Lilly
B. The target market of Eli Lilly
C. The competition and market structure of Eli Lilly
D. Use the major income statement figures and put the figures in the pie chart.
E. Use the major balance sheet figures to represent them in pie chart
F. Outline and explain the trend
G. What is market distribution channels of Eli Lilly?
3. Complete the following elements of an industry analysis:
a. Table and chart showing an index of sales for all seven companies using FYE Dec 05 as the base year
b. Table and chart showing an index of net income for all seven companies using FYE Dec 05 as the base year.
c. Table and chart showing an index of total assets for all seven companies using FYE Dec 05 as the base year.
d. Table and chart showing an index of net PPE for all seven companies using FYE Dec 05 as the base year.
e. Table and chart showing an index of inventory for all seven companies using FYE Dec 05 as the base year.
f. Table and chart showing the gross profit margins for all seven companies
g. Table and chart showing the inventory turnover for all seven companies
h. Table and chart showing the net PPE turnover for all seven companies
4. Put the tables and charts from step 2 and 3 into a PowerPoint slide presentation.
5. Use Eli Lilly & Co. company, complete the following:
a. Download and review the 10-K document for your company to develop an understanding of its business model
b. Conduct an IODE financial analysis of the company, including but not limited to:
i. Balance sheet analysis of structure and trends
ii. Income statement analysis of structure and trends
iii. Analysis of the DuPont ratio structure and trends
iv. Analysis of key profitability ratio structure and trends
v. Analysis of key efficiency ratios and trends
vi. Analysis of key leverage ratios and trends
c. Prepare a set of exhibit tables and/or charts that support the findings and implication of each step of your analysis. Put these exhibits into a PowerPoint slide presentation.
d. Develop some conclusions regarding the sustainability of the business model for Eli Lilly Pharmaceutical company in the context of what you know about the industry (e.g., from your industry analysis in Step 2 and 3, and comparison to other companies in the sample). Include these conclusions in your presentation slides.
