Question:
Assume that you are a financial analyst and you have just been handed a 2000 financial report of Firm X, a large, global pharmaceutical firm. The company competes in both traditional pharmaceutical products and the evolving biotechnology products. Also assume that you have been given the following data on the pharmaceutical industry.
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Firm X
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Industry Average
|
|
Sales
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$5.0 billion
|
$1.2 billion
|
|
Net income
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$1.3 billion
|
$0.12 billion
|
|
Advertising
|
$0.1 billion
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$0.2 billion
|
|
Research and development
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$0.4 billion
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$0.3 billion
|
|
New investment in facilities
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$0.5 billion
|
$0.3 billion
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Given the above data, evaluate the cost management performance of Firm X.