Particulars |
Johnson & Johnson 2016 |
Pfizer 2016 |
||
---|---|---|---|---|
Amount (in million) | Percentage | Amount (in million) | Percentage | |
Net Sales | 71,890 | 100% | 52,824 | 100% |
Cost of Goods Sold | (21,685) | (30.16%) | (12,329) | (23.34%) |
Gross Profit | 50,205 | 69.84% | 40,495 | 76.66% |
Selling, General &Administrative Expenses | (19,945) | (27.74%) | (14,837) | (28.09%) |
Research & Development Expenses | (9,095) | (12.48%) | (7,872) | (14.90%) |
In- Process Research & Development | (29) | (0.04%) | 0 | 0% |
Amortization of Intangible Assets | --- | -- | (4,056) | (7.68%) |
Restructuring Charges, Net | (491) | (0.68%) | (1,724) | (3.26%) |
Interest Expenses | (726) | (1%) | ----------- | ----- |
Interest Income | 368 | 0.51% | ----------- | ---- |
Other Expenses (income), Net | (484) | (0.67%) | (3,655) | (6.92%) |
Income from Continuing Operations before Income Taxes | 19,803 | 27.55% | 8,351 | 15.81% |
Income tax expense | (3,263) | (4.54%) | (1,123) | (2.13%) |
Income from Continuing Operations | 16,540 | 23% | 7,229 | 13.69% |
Income from Discontinuing Operations,Net of Income Tax | ----- | ---- | 17 | 0.03% |
Net Income before Non controlling Interests | 16,540 | 23% | 7,246 | 13.72% |
Income attributable to Non controlling Interests |
------ | ----- | (31) | (0.06%) |
Net Income | $ 16,540 | 23% | $ 7,215 | 13.66% |
b. Sales of Johnson and Johnson is $71,890 & Pfizer sales is $52,824, So the sale of Johnson and Johnson is more than Pfizer. According to sales are used as a measure of size, Johnson and Johnson is larger than Pfizer Inc.
c. Johnson and Johnson has 30.16% and Pfizer Inc. has 23.34% Cost of Goods Sold relative to sales, So that Johnson and Johnson has higher Cost of Goods Sold relative to Sales.
d. Johnson and Johnson has 27.74% and Pfizer Inc. has 28.09% Selling, General and Administrative Expenses relative to Sales, So that Pfizer Inc. has higher Selling , General and Administrative Expenses relative to Sales .
e. Johnson and Johnson has 12.48% and Pfizer Inc. has 14.90% Research and Development Expenses relative to sales, So that Pfizer Inc. has higher Research and Development Expenses relative to sales than Johnson and Johnson.
f. Johnson and Johnson has 23% and Pfizer Inc. has 13.69% of Income from Continuing Operations relative to Sales, So that Johnson and Johnson has higher Income from Continuing Operations relative to Sales than Pfizer Inc. There are 9.31% (23%-13.69%) difference between both Income it is because Research and development expenses and selling General and administrative expenses are respectively 2.42%(14.90%-12.48%) and 0.35% (28.09%-27.74%) higher than Johnson and Johnson company. Because of increase in expenses Pfizer Inc. has less Percentage of Income from Continuing Operations.
g. Johnson and Johnson has 69.84% and Pfizer Inc. has 76.66% Gross Profit . Which means Pfizer Inc. has higher profit margin between Sales and Cost of Goods Sold. This is because Johnson and Johnson has 30.16% and Pfizer Inc. has 23.34% Cost of Goods Sold relative to sales. So Johnson and Johnson has higher Cost of Goods Sold relative to sales than Pfizer Inc.
Calculations for Percentage:-
Cost of Goods Sold %age=(cost of Goods Sold/Sales)×100
Like above formula we calculate other Percentages.
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