Financial Performance of Major Pharmaceutical Firms
Case number:
A06-98-0008
Abstract
This case focuses on evaluating the financial performance of seven large pharmaceutical firms. The case provides balance sheets, income statements, statements of cash flows, and common size income statements and balance sheets for 1995-1996. Students are asked to make time-series cross-sectional comparisons with the data and to compute financial ratios. The case can be taught emphasizing a valuation perspective by linking the financial ratios to the cash flow components that are used in a discounted cash flow analysis.
Teaching
The case can be used to review financial ratios in the early part of a financial statement analysis course, to introduce ratios in an introductory financial accounting course, or to emphasize financial decision making in a strategy course. It has been used in executive education programs to discuss financial statements from the perspective of creating and enhancing shareholder value.
Case number:
A06-98-0008
Subject:
Finance
Year:
Setting:
United States, United Kingdom, 1996
Length:
11 pages
Source:
Library case