use excel sheets to answer questions (3) Prepare ratio analyses (for 2020, 2019, and 2018) for both companies. You should include the following ratios in your com 2018 21,581 980 22,561 6,547 4,551 6,345 Bristol Myers Squibb Co. (NYS: BMY) Report Date Net product sales Alliance & other r Bristol Myers Squibb Co. (NYS: BMY) Report Date Cash & cash equivalents Marketable debt securities Receivables, net Inventori USE THIS INFORMATION ONLY IF NEEDED 2020 2019 Trade receivables 7.882 6,888 Less charge-backs & cash discounts 645 391 Less a Show transcribed data Expert Answer This solution was written by a subject matter expert. It's designed to help students like you learn core concepts. Anonymous answered this 851 answers Here, Average Inventory = (Inventory previous year + Inventory current year)/2 For example for 2020 = (Inventory 2019 + Inventory 2020)/2 Similar way we will calculate Average account receivable and average Total assets Income before tax and Interest = Income before tax + Interest Profitability Ratios Formula 2018 2019 2020 Gross Profit Margin Gross profit/Total Revenues x 100 70.98% 69.11% 72.31% Profit Margin Net Income/Total Revenues x 100 21.81% 13.16% -21.20% Return on Assets Net Income/Total Assets x 100 14.06% 2.65% -7.61% Return on Equity Net Income/Total equity x 100 34.83% 6.62% -23.80% Productivity Formula 2018 2019 2020 Inventory Turnover Cost of Goods Sold/Average Inventory 5.55 2.94 3.70 Accounts receivable turnover Total Revenues/Average accounts receivable 3.68 3.83 5.25 PPE Turnover Total Revenues/Property,plant & Equipment net 4.49 4.18 7.22 Asset Turnover Total Revenues/Average total Assets 0.66 0.32 0.34 Solvency Formula 2018 2019 2020 Debt to equity Total Liabilities/Total Equity 1.48 1.51 2.13 Times interest earned Income before tax and interest/Interest Expenses 33.61 8.58 -3.84 Return on Financial Leverage Income before tax and interest/Income before tax 1.03 1.13 -0.79 Liquidity Formula 2018 2019 2020 Current Ratio Current Assets/Current liabilities 1.61 1.60 1.58 Quick Ratio (Current assets -Inventory)/Current liabilities 1.50 1.37 1.47 Operating Cash flow to current liabilities Net cash flows from operating activites/current liabilities 1.32 0.44 1.47 Working Capital Current Assets -Current Liabilties Can you explain the steps by steps of these formulas calculation? for example how did you calculate or EBIT or Interest before Tax