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Financial Statements Below is the link for the financial statements for Celgene Corporation for the fiscal year ending 2016. http://ir.celgene.com/sec.cfm?view=allĀ (Links to an external site.) When...

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Financial Statements
Below is the link for the financial statements for Celgene Corporation for the fiscal year ending 2016.
http:
ir.celgene.com/sec.cfm?view=allĀ (Links to an external site.)
When you a
ive at this website, please do the following.
First, under View, select Annual Filings using the drop-down a
ow labeled All Filings and then select 2017, using the drop-down a
ow labeled Year,
You should select the 10k dated 2/10/2017 and choose to download in PDF, HTML, or Excel format. The PDF format is the best format for searching.
Below is the link for the financial statements for Gilead Sciences, Inc. for the fiscal year ending 2016.
http:
investors.gilead.com/phoenix.zhtml?c=69964&p=irol-secĀ (Links to an external site.)
First, select 2017 under the Year filter using the drop-down a
ow labeled All Years and then select Annual filings under the Groupings filter using the drop-down a
ow labeled All Forms. Press the large Search button to access the requested annual filing for 2016.
You should select the 10k dated 2/27/2017, and choose to download it in PDF, Word, or Excel format. The PDF format is the best format for searching.
AĀ sample project templateĀ (Links to an external site.)Ā is available for download. The sample project compares the ratio performance of Tootsie Roll and Hershey using the 2014 financial statements of Tootsie Roll and Hershey provided at their websites.
Overall Requirements
For the Final Submission:
Your final Excel workbook submission should contain the following. You cannot use any other software but Excel to complete this project.
1. A Completed Worksheet Title Page tab, which is really a cover sheet with your name, the course, the date, your instructor's name, and the title for the project.
2. A Completed Worksheet Profiles tab which contains a one-paragraph description regarding each company with information about their history, what products they sell, where they are located, and so forth.
3. All 16 ratios for each company with the supporting calculations and commentary on your Worksheet Ratio tab. Supporting calculations must be shown either as a formula or as text typed into a different cell. The ratios are listed further down this document. Your comments for each ratio should include more than just a definition of the ratio. You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios. You need to specifically state which company performed better for each ratio.
4. The Summary and Conclusions Worksheet tab is an overall comparison of how each company compares in terms of the major category of ratios described in Chapter 12 of your textbook. A nice way to conclude is to state which company you think is the better investment and why.
5. The Bibliography Worksheet tab must contain at least your textbook as a reference. Any other information that you use to profile the companies should also be cited as a reference.
Required Ratios for Final Project Submission
1. Earnings per Share of Common Stock
2. Cu
ent Ratio
3. Gross (Profit) Margin Percentage
4. Rate of Return (Net Profit Margin) on Sales
5. Inventory Turnove
6. Days' Inventory Outstanding (DIO)
7. Accounts Receivable Turnove
8. Days' Sales Outstanding (DSO)
9. Asset Turnove
10. Rate of Return on Total Assets (ROA)
11. Debt Ratio
12. Times-Interest-Earned Ratio
13. Dividend YieldĀ [For the purposes of this ratio, use Yahoo Finance to look up cu
ent dividend per share and stock price; just note the date that you looked up this information.]
14. Rate of Return on Common Stockholders' Equity (ROE)
15. Free cash flow
16. Price-Earnings Ratio (Multiple) [For the purpose of this ratio, look up the market price per share as of December 30, 2016 for Celgene Corporation and for Gilead Sciences, Inc..]
Note: The Excel files uploaded as the assignment submission should not include any unnecessary numbers or information (such as previous years' ratios, ratios that were not specifically asked for in the project, etc.).
Other Helpful Information:
If you feel uncomfortable with Excel, you can find many helpful tutorials on Excel by performing a Google search.
Chapter 12 contains ratio calculations and comparison comments related to Apple and Dell, so you will likely find this information helpful.
BigCharts.comĀ (Links to an external site.)Ā provides historical stock quotes.
Either APA or MLA style can be used to complete the references on your Bibliography tab. There is a tutorial for APA and MLA style within the Plagiarism link, which can be accessed through the Syllabus.
Answered Same Day Sep 21, 2021

Solution

Khushboo answered on Sep 24 2021
145 Votes
Title Page
                            Complete your Title page on this tab.
                            Please include your name, the course, the date,
                            your instructor's name, and the title for the project.
Profiles
                    Complete one paragraph, profiling each company's business, including information such as
ief histories, where each company is located, number of employees, the products each company sells, and so forth. Please reference any websites that you used for the profiles on the Bibliography tab.
                    Celgene came about in 1986 by David Stirling and Sol Barer. Just like Gilead, they are also an independent biotechnology company, but they focus on development and commercialization of innovative therapies designed to treat cancer and immune-inflammatory related diseases in patients with limited treatment options." They have 3 main corporation sites, one beng in Summit, NJ (n.d.)
                    Gilead was founded in 1987 by Michael Riordan. Gilead relocates to Foster City, CA after gaining $2 million which when they ended up in CA, it went to $10 milllion. "Gilead is a biotechnology company specializing in developing and marketing drugs to treat anitviral diseases" (Gilead Sciences).
Ratios
    Use this Excel spreadsheet to compute ratios; show your computations for all ratios on this tab, and also include your commentary.
    The 2016 financial statements used to calculate these ratios are available in the Investor Relations sections of the Celgene and Gilead.
            Celgene             Gilead            Interpretation and comparison between the two companies' ratios (reading Chapter 13 will help you prepare the commentary)
                                    The comparison of the ratios is an important part of the project. A good approach is to
iefly explain what the ratio tells us. Indicate whether a higher or lower ratio is better. Then compare the two companies on this basis. Remember that each ratio below requires a comparison.
    Earnings per Share of Common Stock (basic - common)    As given in the income statement            $2.57            $ 10.08
    Cu
ent Ratio    Cu
ent Assets    $10,868    =    3.67    $20,445    =    2.22    This ratio woud be best higher because it shows whether a company has enough resources to meet short-term obligations, which is why Celgene has a higher advantage compared to Gilead.
        Cu
ent Liabilities    $2,959            $9,219
    Gross (Profit) Margin Percentage    Gross Margin    $10,747    =    96.1%    $25,692    =    85.8%    Gross profit margin is the percentage of revenue that the company will have after deducting the cost of goods sold. Celgene his the advantage by having close to 100%.
        Net Sales    $11,185            $29,953
    Rate of Return (Net Profit Margin) on Sales    Net Income    $1,999    =    17.9%    $13,502    =    45.1%    It is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost. Gilead shows the higher ratio meaning they are in better standings then Celgene.
        Net Sales    $11,185            $29,953
    Inventory Turnover    Cost of Goods Sold    $438        0.9    $4,261        2.4    Gilead can turnover their products faster compared to Celgene because it...
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