Accessing SEC reports and Calculating Ratios Access the 2012 financial reports at the SEC websites for Pfizer Inc. and Merck Co., two close…

Accessing SEC reports and Calculating RatiosAccess 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

$Answer

Revenue Answer

Answer

Net incomeAnswer

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

% Answer

% Profit margin (PM) Answer

% Answer

% Asset turnover (AT)Answer

Answer