A. Based on the information that you have gathered, explain the changes in financial ratios. Has anything changed in the few years of financial statements that you have obtained?
Yes, from the year 2011 towards the year 2015, a distinct change in performance could be seen especially in terms of determining the sales revenue results presented in the comparative financial statement noted herein. The years 2011 and 2012 shows a relatively higher rate of revenue compared to the preceding years. In accordance to the reports that have been analyzed in relation to the performance of the organization, these changes are affected by two primary points. One is the emergence of other competing pharmaceutical companies which insists on the capacity of other organizations to provide what the public needs [especially in terms of better pricing options]. Another issue is that of the emergence of health alternatives. The year 2013 opens the door towards welcoming new health alternatives specifically involving herbal options and other organic health products; as a result, the condition of performance that Pfizer took into account during this year distinctively created a differential effect on the position that the company secures in the market.
B. Based on the information you have gathered, analyze the changes in the financial reports regarding cash. Be sure to examine the statement of cash flows.
Considering the cash flow performance of the company, it could be understood that the most important element to affect the whole point of development of the organization’s growth is the concept of research that the organization follows through. While the administrators point their attention towards finding better ways of providing healthful resolutions to the demands of the public, the way the cash dedication distribution they undergo is more focused on finding better research options that would determine the whole concept of organization growth Pfizer hopes to engage in. The investment the company hopes to engage in relation to the whole research that the business hopes to undergo creates a huge impact on the positive and negative factors that determine the behaviour of the company’s cash flow.
C. Based on the information you have gathered, analyze the changes in the financial reports regarding the account balance.
Account balance results include a definite insistence on how the organization tries to direct its form of advancement on the overall growth that it hopes to engage in apart from the competition that it needs to deal with in the market it operates with. The account balance compared between annual performances of the business could be seen to have a distinct source of determination that shows how the administrators intend to deal with the investments they have to take into account.
The account balance that Pfizer exists with at present determines the overall concern the business has towards the desire to engage in further points of research that the administrators largely invest in. It is through this reasoning that the administrators engage in further accounts that allows them to fund research further in order to face the impending competition with organizations that release a new form of healthcare product options to the public.
D. Describe the type of valuation method that your company uses and explain why it uses this method.
Being dedicated towards research and development of new products that fit the demands of the public [especially in terms of creating a much higher form of response to the competition that is set by new organic and herbal products distributed by separate organizations], Pfizer currently embrace the utilization of net present value application in terms of directing the whole cash and asset capitals of the business. This allows the administrators to seek the actual value of a project or a point of advancement that they hope to engage in and assume the results of such matters accordingly; once these options have been proven effective in bringing the business closer to its goals then somehow, the administration is likely to get the project going [depending on the current assets of the organization and it capacity to fund for the new projects and investments].
E. Based on industry trends, future plans of your company, and the information you have gathered, predict how your company will perform in the following year compared to competitors
What makes the whole concept of development effective for Pfizer is that of its capacity to seek a better picture for the whole business in the coming years. Basing its performance on the performance of the competitors especially in relation to the production of organic health options as well as herbal health support, the organization needs to be strongly dependent on the capacity of business to follow through the trend. At some point, it could be realized that this is a challenge to the organization’s traditional name and reputation in the industry. Being a pioneer in the field of the production of synthetic medicines, Pfizer needs to take a different turn especially in making a definite indication on how the organization welcomes the new age culture that embraces alternative forms of mediation and health protection.
The Wall Street Journal. http://quotes.wsj.com/PFE/financials. (Retrieved on July 3 2016)
Annual Financials for Pfizer Inc. http://www.marketwatch.com/investing/stock/pfe/financials. (Retrieved on July 3, 2016)
Pfizer Financial Review. http://www.pfizer.com/system/files/presentation/2015_Pfizer_Financial_Report.pdf. Retrieved on July 3, 2016)