The following data were taken from the 2010 annual reports of Biogen Idec, Inc., and Amgen Inc. Both companies are leaders in biotechnology. All dollar amounts are in millions.
Required:
a. For each company, compute the debt to assets ratio, return on assets ratio, and return on equity ratio.
b. Which company has the greatest level of financial risk? Explain.
c. Which company appears to have managed its assets most efficiently? Explain.
d. Which company performed better from the perspective of the owners?Explain.