Selected income statement data for Abbott Laboratories, Bristol-Myers Squibb Company, Johnson & Johnson, GlaxoSmithKline plc, and Pfizer, Inc. is presented in the following table: Bristol- Johnson Glaxo Аbbott Мyers & Smith ($ millions) Laboratories Squibb Johnson Kline plc Pfizer Sales revenue Cost of sales $38,851 $21,244 $65,030 £27,387 $67,425 15,541 5,598 20,360 7,332 15,085 SG&A expense 12,757 5,160 20,969 8,826 19,468 R&D expense 4,129 3,839 7,548 4,009 9,112 Interest expense 530 145 571 799 1,681 Net income 4,728 5,260 9,672 5,458 10,051 Required a. Compute the profit margin (PM) and gross profit margin (GPM) ratios for each company. (As a British company, GlaxoSmithKline plc has a statutory tax rate of 26.5% in 2014; assume a statutory rate of 35% for all other companies.) (Round your answers to one decimal place.) Bristol- Johnson Glaxo Abbott Myers & Smith Laboratories Squibb Johnson Kline plc Pfizer PM GPM % % b. Compute the research and development (R&D) expense to sales ratio and the selling, general and administrative (SG&A) expense to sales ratio for each company. (Round your answers to one decimal place.)
Selected income statement data for Abbott Laboratories, Bristol-Myers Squibb Company, Johnson & Johnson, GlaxoSmithKline plc, and Pfizer, Inc. is presented in the following table: Bristol- Johnson Glaxo Аbbott Мyers & Smith ($ millions) Laboratories Squibb Johnson Kline plc Pfizer Sales revenue Cost of sales $38,851 $21,244 $65,030 £27,387 $67,425 15,541 5,598 20,360 7,332 15,085 SG&A expense 12,757 5,160 20,969 8,826 19,468 R&D expense 4,129 3,839 7,548 4,009 9,112 Interest expense 530 145 571 799 1,681 Net income 4,728 5,260 9,672 5,458 10,051 Required a. Compute the profit margin (PM) and gross profit margin (GPM) ratios for each company. (As a British company, GlaxoSmithKline plc has a statutory tax rate of 26.5% in 2014; assume a statutory rate of 35% for all other companies.) (Round your answers to one decimal place.) Bristol- Johnson Glaxo Abbott Myers & Smith Laboratories Squibb Johnson Kline plc Pfizer PM GPM % % b. Compute the research and development (R&D) expense to sales ratio and the selling, general and administrative (SG&A) expense to sales ratio for each company. (Round your answers to one decimal place.)
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
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Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 13P: Data for Lozano Chip Company and its industry averages follow.
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![Selected income statement data for Abbott Laboratories, Bristol-Myers Squibb Company, Johnson & Johnson, GlaxoSmithKline plc, and Pfizer, Inc. is presented in the following table:
Bristol- Johnson
Glaxo
Abbott
Мyers
&
Smith
($ millions)
Laboratories Squibb Johnson Kline plc Pfizer
Sales revenue
$38,851 $21,244 $65,030
£27,387 $67,425
Cost of sales
15,541
5,598
20,360
7,332
15,085
SG&A expense
12,757
5,160
20,969
8,826 19,468
R&D expense
4,129
3,839
7,548
4,009
9,112
Interest expense
530
145
571
799
1,681
Net income
4,728
5,260
9,672
5,458
10,051
Required
a. Compute the profit margin (PM) and gross profit margin (GPM) ratios for each company. (As a British company, GlaxoSmithKline plc has a statutory tax rate of 26.5% in 2014; assume a
statutory rate of 35% for all other companies.)
(Round your answers to one decimal place.)
Bristol-
Johnson
Glaxo
Abbott
Myers
&
Smith
Laboratories
Squibb
Johnson
Kline plc
Pfizer
PM
%
GPM
%
b. Compute the research and development (R&D) expense to sales ratio and the selling, general and administrative (SG&A) expense to sales ratio for each company.
(Round your answers to one decimal place.)
Bristol-
Johnson
Glaxo
Abbott
Мyers
&
Smith
Laboratories
Squibb
Johnson
Kline plc
Pfizer
R&D ETS
SG&A ETS
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd06ca99-bcad-4c01-be6c-55234df27086%2Fec342a5f-6d98-4b01-9066-bea669ac5ac1%2Fni944ad_processed.png&w=3840&q=75)
Transcribed Image Text:Selected income statement data for Abbott Laboratories, Bristol-Myers Squibb Company, Johnson & Johnson, GlaxoSmithKline plc, and Pfizer, Inc. is presented in the following table:
Bristol- Johnson
Glaxo
Abbott
Мyers
&
Smith
($ millions)
Laboratories Squibb Johnson Kline plc Pfizer
Sales revenue
$38,851 $21,244 $65,030
£27,387 $67,425
Cost of sales
15,541
5,598
20,360
7,332
15,085
SG&A expense
12,757
5,160
20,969
8,826 19,468
R&D expense
4,129
3,839
7,548
4,009
9,112
Interest expense
530
145
571
799
1,681
Net income
4,728
5,260
9,672
5,458
10,051
Required
a. Compute the profit margin (PM) and gross profit margin (GPM) ratios for each company. (As a British company, GlaxoSmithKline plc has a statutory tax rate of 26.5% in 2014; assume a
statutory rate of 35% for all other companies.)
(Round your answers to one decimal place.)
Bristol-
Johnson
Glaxo
Abbott
Myers
&
Smith
Laboratories
Squibb
Johnson
Kline plc
Pfizer
PM
%
GPM
%
b. Compute the research and development (R&D) expense to sales ratio and the selling, general and administrative (SG&A) expense to sales ratio for each company.
(Round your answers to one decimal place.)
Bristol-
Johnson
Glaxo
Abbott
Мyers
&
Smith
Laboratories
Squibb
Johnson
Kline plc
Pfizer
R&D ETS
SG&A ETS
%
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