Pfizer Inc. (PFE) discovers, produces, and distributes medicines, including Celebrex and Lipi- tor. Ford Motor Co. (F) develops, markets, and produces automobiles and trucks. Microsoft Corporation (MSFT) develops, produces, and distributes a variety of computer software and hardware products including Windows, Office, Excel, and the Xbox. 1. Without computing the return on assets, rank from highest to lowest Pfizer, Ford, and Microsoft in terms of their return on assets. 2. The following data (in millions) were taken from recent financial statements of each company: Pfizer $ 21,308 171,615 171.797 Net income. Total assets at the beginning of the year...... Total assets at the end of the year. Ford $ 7,628 237,951 257.808 Microsoft $ 21,204 193,468 241.086
Pfizer Inc. (PFE) discovers, produces, and distributes medicines, including Celebrex and Lipi- tor. Ford Motor Co. (F) develops, markets, and produces automobiles and trucks. Microsoft Corporation (MSFT) develops, produces, and distributes a variety of computer software and hardware products including Windows, Office, Excel, and the Xbox. 1. Without computing the return on assets, rank from highest to lowest Pfizer, Ford, and Microsoft in terms of their return on assets. 2. The following data (in millions) were taken from recent financial statements of each company: Pfizer $ 21,308 171,615 171.797 Net income. Total assets at the beginning of the year...... Total assets at the end of the year. Ford $ 7,628 237,951 257.808 Microsoft $ 21,204 193,468 241.086
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:MBA 1-5 Return on assets
Pfizer Inc. (PFE) discovers, produces, and distributes medicines, including Celebrex and Lipi-
tor. Ford Motor Co. (F) develops, markets, and produces automobiles and trucks. Microsoft
Corporation (MSFT) develops, produces, and distributes a variety of computer software and
hardware products including Windows, Office, Excel, and the Xbox.
1. Without computing the return on assets, rank from highest to lowest Pfizer, Ford, and
Microsoft in terms of their return on assets.
2. The following data (in millions) were taken from recent financial statements of each company:
Pfizer
$ 21,308
171,615
171,797
Net income...
Total assets at the beginning of the year......
Total assets at the end of the year..
Ford
$7,628
237,951
257,808
Microsoft
$ 21,204
193,468
241,086
Compute the return on assets for each company using the preceding data, and rank the
companies' return on assets from highest to lowest. Round the return on assets to one
decimal place.
3. Analyze and explain the rankings in (2).
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