Pfizer Inc. discovers, produces, and distributes medicines, including Celebrex and Lipitor. Ford Motor Co. develops, markets, and produces automobiles and trucks. Microsoft Corporations develops, produces, and distributes a variety of computer software and hardware products including Windows, Office, Excel, and the Xbox.
1. Without computing the rates of return on total assets, rank from highest to lowest Pfizer, Ford, and Microsoft in terms of their rates of return on total assets.
2. The following data (in millions) were taken from recent financial statements of each company.

Compute the rate of return for each company using the preceding data, and rank the companies’ rates of return from highest to lowest. Round the rates of return to one decimal place.
3. Analyze and explain the rankings in(2).

  • CreatedMarch 11, 2014
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