This website uses cookies to ensure you have the best experience. Learn more

Financial Management And Analysis

2531 words - 11 pages

London School of Commerce

Ratio analysis and comparison of Celgene Corporation and Biogen Idec Inc.

Professor William Parrott

Financial Management and Analysis

Nikola Sočanac
0022GZGZ1113

Table of Contents

Introduction 3
Presentation of the companies 3
Ratio analysis of the companies 5
Profitability ratios 5
Liquidity ratios 7
Efficiency ratios 9
Gearing ratios 11
Investment ratios 12
Ratio analysis strengths and weaknesses 14


Introduction

Financial analysis involves the use of various financial statements, which perform several functions. Basics of financial analysis consist of a balance sheet and income statement. Income statement shows revenues and expenditures ...view middle of the document...

5 billion in 2001 to $103 billion in 2012. Worldwide biotech product sales grew 353% between 2001 and 2012, reaching $163 billion. (http://www.pharmatimes.com/article/13-11-14/Tufts_report_confirms_domination_of_biotech_products.aspx Kevin Grogan 2013)

Presentation of the companies

Celgene Corporation (Celgene) is a biopharmaceutical company with more than 5$ billion in revenues and it was founded in 1986. In 1987 Celgene offers shares of stock thorugh Initial Public Offering. From 2000 until 2013 Celgene made six big acquisitions: Signal Pharmaceuticals, Anthrogenesis, Pharmion, Gloucester pharmaceuticals, Abraxis BioScience and Avila Therapeutics and took their product portfolios, with tendency to become leader in oncology treatment therapies.
Celgene (NASDAQ:CELG) is specialized for therapies designed to treat cancer and inflammatory diseases. The Celgene’s product portfolio includes Revlimid, Vidaza, Thalomid, Pomalyst, Abraxane, Otezla and Istodax. The company also has several products at various stages of development for the treatment of hematological and solid tumor cancers. Core products are therapies for multiple myeloma, chronic lymphocytic leukemia, myelodysplastic syndrome, non-Hodgkin's lymphoma, and small cell lung cancer. Celgene distributes its products through its own sales organizations in 31 countries and has subsidiaries operating across the world. Headquarter of Celgene is in Summit, New Jersey. (https://www.celgene.com/about/)

Biogen Idec Inc. (Biogen Idec) is the world's oldest independent biotechnology company with more than $5 billion in revenues. It was founded in 1978 in Switzerland. In 1983 Biogen offers shares of stock through its Initial Public Offering, becoming a NASDAQ-traded firm. In 1985 IDEC Pharmaceutical is founded in USA. In 2003 Biogen and IDEC merge, creating Biogen Idec (NASDAQ:BIIB).
Biogen Idec Inc. is a biotechnology company that discovers, develop, manufacture and commercialize novel therapies for numerous diseases including neurodegenerative illnesses, autoimmune disorders such as multiple sclerosis, chronic lymphocytic leukemia, non-Hodgkin’s lymphoma, rheumatoid arthritis, Crohn’s disease; hemophilia, and psoriasis. Company core products are Avonex, Alprolix, Tysabri, Fampyra, Gazyva, Tecfidera and Rituxan. The company also has a broad spectrum of products in various stages of development. Biogen Idec has direct operations in 33 countries and a network of distributors in over 70 other markets on five continents. Biogen Idec is headquartered in Cambridge Massachusetts. (http://www.biogenidec.com/about_history.aspx?ID=5480)

Ratio analysis of the companies

Ratios numbers allow us to better understand the current financial position of the company and to compare it with competing firms. All ratio numbers can be classified into several groups of related financial ratios. This classification is not uniform and depends on the analyst. In this report, rational numbers will be grouped in:
•...

Find Another Essay On Financial Management and Analysis

Riordan Financial status and analysis

1021 words - 4 pages Summary of Riordan's financial statusFigures in Riordan's financial statements and the computations of its financial ratios suggest that the company is in a precarious financial state. While Riordan has some working capital and an acceptable current ratio, its quick ratio (which is a better indicator of a company's health) falls below acceptable standards. At 56%, its debt to equity ratio is excessive by industry standards and implies that the

Motorola and Nokia Financial Analysis

903 words - 4 pages For the financial analysis, I selected Motorola and Nokia. The two companies control a dominant share of the cellular handset market. Successful competition in the cellular equipment industry requires companies that can plan for change, identify their worldwide position, and recognize trends in their financial results and in the tastes of their customers.Company OverviewsMotorola, founded in 1928, was originally known as Galvin Manufacturing

Health Care Managers and Financial Management

1291 words - 6 pages According to Buchbinder, Shanks & Thompson (2010) the definition of is the process with technical and social activities and functions, occurring within organisations for the purpose of completing predetermined objectives through humans and other resources. More specifically, financial management is the subset of management that focuses on creating financial information that can be used to enhance decision making (Calabrese et al. 2013). With

Code of Ethics in Management Accounting and Financial Management

516 words - 2 pages Code of Ethics in Management Accounting and Financial Management When faced with major problems and dilemmas in management accounting and financial management, practitioners look to the 'standards of ethical conduct' for practitioners of management accounting and financial management. While looking at ethical standards one has to look at four different areas they are competence, confidentiality, integrity, and objectivity. These four areas

Self-assessment of Financial Management Students to the Financial Analysis Skills

1112 words - 5 pages product of the company. Knowing financial analysis skills are important to those whotook up, taking up and will take up BS Financial Management. It is a requirement to be familiarize on those skills. Majority of the companies are looking for some financial analyst to check for the financial stability of the company. Analysing, spread sheets, checking up or making the recommendation to the manager or president is some of the works of being a financial

Johnson and Johnson financial ratio analysis

1405 words - 6 pages development. The company has enough cash and the management drive to support this initiative. Since Johnson and Johnson holds patents more than 54000 products the likelihood of new initiative success is very high. Referenceshttp://www.jnj.com/home.htmBenchmarking your business with financial ratio analysis. Retrieved October 14, 2007 fromhttp://www.contractingbusiness.com/25/Issue/Article/False/46149/IssueBrealey, R., Myers, S. & Marcus, A. (2003). Fundamentals of Corporate Finance. Retrieved October 14, 2007 from University of Phoenix Online.

Motorola and Nokia Company Financial Analysis

1666 words - 7 pages For the analysis, I selected Motorola and Nokia. The two companies control a dominant share of the cellular handset market. Successful competition in the cellular equipment industry requires companies that can plan for change, identify their worldwide position, and recognize trends in their financial results and in the tastes of their customers.Motorola Cash Flow, Revenue and Income AnalysisOver the past three years, Motorola struggled mightily

Business and Financial Analysis: Toyota Motor Corporation

818 words - 4 pages saving hybrids into the market with cheaper prices then customers can easily manage with expensive transportation costs without worrying about increasing fuel and CNG prices and this will lead to a positive increase in IMC’s revenue. • Customer needs change from time to time, responding as earlier as one can, IMC can retain a decent market share. Threats • Governmental policies have been the prevalent threat so far for IMC. In the financial

Financial Gaps in Mexico: Analysis and Prevention

1137 words - 5 pages paper (i.e., “To what extent is this financial gap in Mexico?” “Why does this gap exist?” and “What could we have done to prevent this gap?”) provide a basis of understanding of this topic. Although The Pearl was written in 1945, this paper will be focusing on these issues in present-day Mexico. The first goal of this paper will be to analyze the extent of this gap in Mexico. Economic inequality has become so apparent that poor criminals are

AD MANAGEMENT AND THE RECENT TURMOIL IN FINANCIAL MARKETS

1472 words - 6 pages regulators? While these questions may never subside, the global financial downturn was a clear exposition of defective managerial prudence and decision-making unevenly dispersed across financial institutions, agencies, government bodies and investors. Peter Drucker, in a famous Wall Street Journal article, “what do managers do,” explained that the fundamentals of any effective management lies in the degree of uprightness of doing five basic tasks

Financial Analysis of Matalan and House of Fraser

2501 words - 10 pages Investment Analysis Matalan & House of Fraser Introduction In this essay I would like to elaborate on the investment analysis of two companies, open a space of possibilities in discourse and practices in order to determine which of the two companies to invest in. The essay will commence with a brief overview of the two companies that are being considered. The latter part of the essay will explain and critique the financial

Similar Essays

Financial Management And Planning Essay

585 words - 3 pages To be a successful business owner, financial planning is instrumental in business if the owner desires to achieve insurmountable success for the long term. Financial planning in particular is concerned with the evaluation process of the business. Financial management is about establishing short and long term objectives for the business and deciding what resources will be required to achieve the necessary objectives. The primary goal for

Financial Statement And Ratio Analysis: Key Tools To Successful Financial Management

2633 words - 11 pages Financial Statement and Ratio Analysis: Key Tools to Successful Financial Management Executive SummaryHow do firms assess their own strengths and weaknesses? How does a firm measure management's performance? Finally, how do firms compare themselves against the competition? The answer to these questions lies in the fundamentals of financial management. A crucial element in the success of any business organization is understanding the fundamentals

Business And Financial Analysis

1497 words - 6 pages Revenue Analysis FY 2012-2013, Indus Motor Company had it difficult. Its Revenue has fallen about -17.6 % own to many reasons as it can be seen in Figure 2. This financial year had been rough for all the local automakers, manufacturers and assemblers (Honda Atlas, 2013). Government was exceedingly blamed for most of the revenue fall witnessed by all the automobile industry participants. Decision of increasing age limit of imported used cars

Multi Purpose Holdings Berhad Financial Management Analysis

1634 words - 7 pages / [Accessed: 2 Mar 2014]. Keown, A. J., Martin, J. D., Petty, J. W. and Scott Jr., D. F. 2004. Foundations of Finance: The Logic and Practice of Financial Management. 4th ed. [e-book] Beijing: Pearson Education Asia Limited and TsingHua University. Available through: Google Books http://books.google.com.my/books?id=ol376Siacg8C&printsec=frontcover#v=onepage&q&f=false [Accessed: 1 Mar 2014]. Longenecker, J., Petty, J., Palich, L. and Hoy, F. 2013