7 pages. Based on the financial analysis of two biotechnology companies a decision will be made as to which company has the better financial outlook and would therefore be a more likely prospect in which to invest. The financial analysis of these biotechnological firms includes company background, industry information, and recommendations. These will be based on such things as the gross and net profit margins, as well as other financial ratios including the current ratio and debt to equity ratio. Bibliography lists 2 sources.
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of two biotechnology companies a decision will be made as to which company has the better financial outlook and would therefore be a more likely prospect in which to invest.
The financial analysis of these biotechnological firms includes company background, industry information, and recommendations. These will be based on such things as the gross and net profit margins,
as well as other financial ratios including the current ratio and debt to equity ratio. THE COMPANIES The two companies to be analyzed are in the biotechnology field.
Agritope is a company that studies the effects of food spoilage and how it can be slowed. This important agricultural biotechnology firm will help produce growers have more time
to get their produce to the public in a timely manner without the problem of loss due to spoilage. The other company to be analyzed is Schering-Plough, the producers
of the leading allergy medicine, Claritin. Schering-Ploughs website states that "innovative research, effective marketing and solid financial management have enabled the Company to grow and deliver superior financial results
year after year" (Schering-Plough, 2002, PG). FINANCIAL ANALYSIS In the financial analysis of both Agritope and Schering-Plough, the first goal is to measure the companys profit to determine
the cash flow that shareholders can expect to receive from owning the companys common stock. Financial managers strive to maximize the companys profit and minimize risk in order to
maximize the stock price. Agritopes gross margin is 41.97 percent while that of Schering-Plough is 80.79 percent. This tells us the gross operating profit per dollar of operating
revenue and is determined by dividing the gross operating profit by operating revenue. In other words, Agritopes prices (and therefore the operating revenue) can decline by 41.97 percent before
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