FINANCIAL STATEMENT ANALYSIS OF
GLAXOSMITHKLINE AND PFIZER
Investment decisions to entrepreneurs are usually drawn from the opportunities perceived to be in business, most times it goes sour at the end because proper investigation is not made into the viability of the business using facts and figures. It is somewhat a different ball game with listed companies due to the fact that huge investment outlays are required and every investor wants to be sure of the future of such investment.
An important accounting concept that comes to mind is the “going Concern” wish looks at business as an entity which lives and grow with time, business managers through this are able to make appropriate decisions, viable enough to reflect a positive position in the cost and benefit analysis.
Decisions are made either on short term or long term basis but the underlying factor is the position such decision leads the organisation to after an analysis of commitment and the return on investment. In essence, decisions based on the daily operations of a business must have such impact as another made on the continuous existence of the business towards the long time survival of the business.
This work is aimed at understanding how business decisions are made using financial ratio analysis.
It also helps us to understand how to measure the performance of businesses, their financial position and the likelihood of success in the future.
1.1. STATEMENT OF PURPOSE
Examining the performance of a business requires the use and analysis of financial ratios, benchmarking these figures against their peers in the industry as well as their result over two or more accounting periods.
The intention of this paper is to compare the results obtained by GlaxoSmithKline and Pfizer who both operate in the pharmaceutical industry to see how each has performed in the year 2012 as well as consider through their result which has better prospect in terms of attracting investors....