Cash wise company Term Paper Example | Topics and Well Written Essays - 1000 words

Cash wise company - Term Paper ExampleThis assignment presents the results and analysis of monetary ratios of a publicly traded company.We selected a company listed in the S&P 500 index. The comparison of nine sectors of S&P 500 index inwardly five years of interval shows that the Health Care is the leading sector (S&P Sector Performance). Based on information provided in Table 1, we select AbbVie Inc (ABBV) for our study, and Abbott Laboratories (ABT), Amgen Inc (AMGN), Baxter Intl (BAX) as its competitors. Our selection is based on the beta value and market capitalization of the company (Table 1) and character of the historical stock prices shown in Figure 2. The stock prices of ABBV are stable and without noises.AbbVie Inc. is a pharmaceuticals company it conducts extensive researches to treat diseases such as HIV, thyroid disease, Parkinsons disease, chronic kidney disease and opposite complex diseases. AbbVies portfolio of products include HUMIRA, Synthroid, AndroGel, Creon, Kaletra, Norvir, Lupron, Niaspan, TriCor, TRILIPIX, Synagis, Duodopa, Dupa, Zemplar (AbbVie).Financial ratios are used to assess a companys performance and position in the competitive landscape of business. It allows meter the companys performance across time and among its competitors. Our objective of this study is to evaluate AbbVie Inc.s financial ratios for years from 2012 to 2014 and compare them with ratios of its competitors. Financial ratios are separate into four categories lucreability, efficiency, liquidity, and leverage.Profitability Ratios. A companys principal goal is to make a profit. Assets and operational activities employed in the company are designate to achieve this goal. Profitability ratios measure a companys ability to generate profit. There are several profitability ratios. This assignment uses Net profit margin, Return on assets, and Return on equity.Efficiency Ratios. Assets and liability are two important issues of a