Analysis of Finansial Ratios Gsk
1. INTEPRETATONS OF FINANCIAL RATIOS
A. GlaxoSmithKline at a glance.
“GlaxoSmithKline (GSK) is a global healthcare company specialized in the discovery, development, manufacturing and marketing pharmaceutical and consumer health-related products. GSK has operations in about 114 countries, with products being sold in over 150 countries”.
A. Evaluation of profitability ratios.
For the evaluation of the profitability ratio over five-year period we will analyse the financial data from the annual reports of two companies: GlaxoSmithKline and Astra Zeneca. First of all, we would like to present the product revenue information of both companies as percentage from total revenues of each company from 2005 to 2009 period.
As we can see from the Figure 1.0, more than 20% of total revenues are the sales of respiratory drugs for 5 years, and the dynamics of sales of these drugs were on the same level. GSK is more concentrated on manufacturing and selling drugs of respiratory, anti-virals and vaccines. As for AstraZeneca, it is more concentrated on the sale of drugs for diseases of the cardiovascular and nervous system, cancers and gastrointestinal.
The gross profit margin has declined from 2005 to 2009 for GSK as a result of some combination of price increases. AstraZeneca has higher gross profit margin at 8,42% in 2009 and 5,46 % in 2008, because the gross sales of AstraZeneca is higher at 15% than GSK in 2009 and cost of goods sold is lower at 28% in 2009
There was an increase in operating profit of AstraZeneca at 6,25 % from 2008 to 2009, while the gross profit margin has increased only 3,27% for the same period, and the operating expenses were lower comparing with the sales revenue in 2009 than they had been in 2007
In GSK the pretax margin was slightly down from 31,08 % in 2005 to 27,82 % in 2009, while in AstraZeneca the pretax margin was increasing from 27.47% in 2008 to 33% in 2009, which is primarily
A. GlaxoSmithKline at a glance.
“GlaxoSmithKline (GSK) is a global healthcare company specialized in the discovery, development, manufacturing and marketing pharmaceutical and consumer health-related products. GSK has operations in about 114 countries, with products being sold in over 150 countries”.
A. Evaluation of profitability ratios.
For the evaluation of the profitability ratio over five-year period we will analyse the financial data from the annual reports of two companies: GlaxoSmithKline and Astra Zeneca. First of all, we would like to present the product revenue information of both companies as percentage from total revenues of each company from 2005 to 2009 period.
As we can see from the Figure 1.0, more than 20% of total revenues are the sales of respiratory drugs for 5 years, and the dynamics of sales of these drugs were on the same level. GSK is more concentrated on manufacturing and selling drugs of respiratory, anti-virals and vaccines. As for AstraZeneca, it is more concentrated on the sale of drugs for diseases of the cardiovascular and nervous system, cancers and gastrointestinal.
The gross profit margin has declined from 2005 to 2009 for GSK as a result of some combination of price increases. AstraZeneca has higher gross profit margin at 8,42% in 2009 and 5,46 % in 2008, because the gross sales of AstraZeneca is higher at 15% than GSK in 2009 and cost of goods sold is lower at 28% in 2009
There was an increase in operating profit of AstraZeneca at 6,25 % from 2008 to 2009, while the gross profit margin has increased only 3,27% for the same period, and the operating expenses were lower comparing with the sales revenue in 2009 than they had been in 2007
In GSK the pretax margin was slightly down from 31,08 % in 2005 to 27,82 % in 2009, while in AstraZeneca the pretax margin was increasing from 27.47% in 2008 to 33% in 2009, which is primarily