Comparing Profitability Ratios for Competitors

Selected income statement data for Abbott Laboratories, Bristol-Myers Squibb Company, Johnson & Johnson, GlaxoSmithKline plc, and Pfizer, Inc. is presented in the following table:

($ millions)	Abbott Laboratories	Bristol- Myers Squibb	Johnson & Johnson	Glaxo Smith Kline plc	Pfizer
Sales revenue	$40,001	$22,394	$66,280	28,537	$68,675
Cost of sales	15,541	5,598	20,360	7,332	15,085
SG&A expense	12,757	5,160	20,969	8,826	19,468
R&D expense	4,129	3,839	7,548	4,009	9,112
Interest expense	530	145	571	799	1,681
Net income	4,728	5,260	9,672	5,458	10,051

Required a. Compute the profit margin (PM) and gross profit margin (GPM) ratios for each company. (As a British company, GlaxoSmithKline plc has a statutory tax rate of 26.5% in 2014; assume a statutory rate of 35% for all other companies.) (Round your answers to one decimal place.)

	Abbott Laboratories	Bristol- Myers Squibb	Johnson & Johnson	Glaxo Smith Kline plc	Pfizer
PM	Answer	Answer	Answer	Answer	Answer
GPM	Answer	Answer	Answer	Answer	Answer

b. Compute the research and development (R&D) expense to sales ratio and the selling, general and administrative (SG&A) expense to sales ratio for each company. (Round your answers to one decimal place.)

	Abbott Laboratories	Bristol- Myers Squibb	Johnson & Johnson	Glaxo Smith Kline plc	Pfizer
R&D ETS	Answer	Answer	Answer	Answer	Answer
SG&A ETS	Answer	Answer	Answer	Answer	Answer