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.
|
Firm X |
Industry Average |
|
|
Sales |
$5.0 billion |
$1.2 billion |
|
Net income |
$1.3 billion |
$0.12 billion |
|
Advertising |
$0.1 billion |
$0.2 billion |
|
Research and development |
$0.4 billion |
$0.3 billion |
|
New investment in facilities |
$0.5 billion |
$0.3 billion |
Given the above data, evaluate the cost management performance of Firm X.