COMPARISON WITH COMPETITORS

• Johnson & Johnson has 10.29% of its assets in cash and equiv, while Pfizer has only 2.17%
• Johnson & Johnson has 45.13% on current assets, in contrast with Pfizer and Merck range between 26% and 29%
• Most important difference: Percentage of retained earnings, J&J (77.86%), Pfizer (42.99%), and Merck (44.56%).
• J&J and Merck: Cost of goods sold 34.27%, but Pfizer has only 19.75%.
• Similarity among three companies in the percent of COGS and operating expenses relative to sales.

STRENGHTS AND WEAKNESSES

• Strengths: recognition, broad portfolio, financial stability.
• Leader in the industry with sales of more than $70,074 million in contrast to competitors (less than $50,000)
• Financial stability implies better ability to get financing and more investments.
• Weaknesses: strong competition, risk of market fluctuations in the world.
• Strong competition reduces ability of growth in the future

ROA, ROCE, Financial Leverage

"ROA is an indicator of how profitable a company is relative to its total assets"

• Johnson and Johnson ROA: 10.42% in 2013, 12.52% in 2014, and 11.55% in 2015.

"ROCE" is a financial ratio that measures a company's profitability and the efficiency with which its capital is employed"

• Johnson & Johnson ROCE: 18.69% in 2015.
• Compared to competitors: Pfizer and Merck 7.35% in 2015.
• Financial leverage is analyzed with debt/assets ratio, debt/equity ratios, long-term debt/equity.
• Johnson & Johnson: 0.467, 0.875, 0.485 respectively.