Horizontal Analysis Paper
Course Project Horizontal Analysis – Week 2
Your outline should include (but is not limited to) the following.
I. Choice of Companies and an Overview of Their Operations and Industry – Briefly outline what each company does and its industry. (5 points)
For my course project, I chose to compare the Pharmaceutical company Pfizer (NYSE: PFE) and its competitor Bristol-Myers Squibb (NYSE: BMY).
Pfizer is Pfizer is the world’s leading pharmaceutical company with more than 122,000 employees worldwide and operations in over 150 countries. . Throughout the years, Pfizer has continued to discover, develop and bring to market innovative medicines that treat diseases and improve the quality of patients’ lives. In 2001, they adopted a new mission to …show more content…
Discussion of Current Issues Impacting Financial Statements – Include any relevant current event information, news that has affected financial statements, or world events that could impact the businesses. Research will have to be done on this. Some good sources of information include the most recent annual reports for each company (these can be found online for all publicly-traded companies; utilize the most current year-end annual reports available), Yahoo! Finance, the MSN Money website (this will provide current information on your company and some ratio information), and various business magazines. You can find the websites suggested under the Webliography tab in the course. (5 …show more content…
An analysis of Pfizer 's finances is focused on revenues and growth, cost of sales, net income, expenses, cash flow, and EPS, etc. First, Pfizer has seen a major decline in revenue growth over the past few years. The revenues decreased $333 million, or 2%, which reflects operational growth of $64 million, or 1%, and the unfavorable impact of foreign exchange of $397 million, or 3%. Business unit revenues were impacted by many factors according to Pfizer annual financial report such as primary care, specialty care, emerging markets, consumer healthcare, and oncology. Adjusted cost of sales, adjusted SI&A expenses and adjusted R&D expenses in the aggregate were flat operationally. The effective tax rate on adjusted income declined 2.0 percentage points to 27.7% from 29.7%. The diluted weighted-average shares outstanding declined by approximately 862 million shares, due to the company’s ongoing share repurchase program and the impact of the Zoetis exchange offer, which was completed on June 24, 2013. The fourth-quarter 2013 reported earnings were significantly unfavorably impacted by the non-recurrence of income from discontinued operations attributable to the company’s Animal Health and Nutrition businesses, including the gain on the sale of the Nutrition business, in the year-ago quarter. Reported earnings were favorably impacted by a
Your outline should include (but is not limited to) the following.
I. Choice of Companies and an Overview of Their Operations and Industry – Briefly outline what each company does and its industry. (5 points)
For my course project, I chose to compare the Pharmaceutical company Pfizer (NYSE: PFE) and its competitor Bristol-Myers Squibb (NYSE: BMY).
Pfizer is Pfizer is the world’s leading pharmaceutical company with more than 122,000 employees worldwide and operations in over 150 countries. . Throughout the years, Pfizer has continued to discover, develop and bring to market innovative medicines that treat diseases and improve the quality of patients’ lives. In 2001, they adopted a new mission to …show more content…
Discussion of Current Issues Impacting Financial Statements – Include any relevant current event information, news that has affected financial statements, or world events that could impact the businesses. Research will have to be done on this. Some good sources of information include the most recent annual reports for each company (these can be found online for all publicly-traded companies; utilize the most current year-end annual reports available), Yahoo! Finance, the MSN Money website (this will provide current information on your company and some ratio information), and various business magazines. You can find the websites suggested under the Webliography tab in the course. (5 …show more content…
An analysis of Pfizer 's finances is focused on revenues and growth, cost of sales, net income, expenses, cash flow, and EPS, etc. First, Pfizer has seen a major decline in revenue growth over the past few years. The revenues decreased $333 million, or 2%, which reflects operational growth of $64 million, or 1%, and the unfavorable impact of foreign exchange of $397 million, or 3%. Business unit revenues were impacted by many factors according to Pfizer annual financial report such as primary care, specialty care, emerging markets, consumer healthcare, and oncology. Adjusted cost of sales, adjusted SI&A expenses and adjusted R&D expenses in the aggregate were flat operationally. The effective tax rate on adjusted income declined 2.0 percentage points to 27.7% from 29.7%. The diluted weighted-average shares outstanding declined by approximately 862 million shares, due to the company’s ongoing share repurchase program and the impact of the Zoetis exchange offer, which was completed on June 24, 2013. The fourth-quarter 2013 reported earnings were significantly unfavorably impacted by the non-recurrence of income from discontinued operations attributable to the company’s Animal Health and Nutrition businesses, including the gain on the sale of the Nutrition business, in the year-ago quarter. Reported earnings were favorably impacted by a