1. Introduce the base condition of AstraZeneca and GlaxoSmithKline The AstraZeneca is a pharmaceutical company. It is the world's seventh-largest pharmaceutical company. The company headquartered in London, United Kingdom. They invest to drive growth across our emerging markets especially in china, capture the potential from established brands and new portfolio. GlaxoSmithKline is a British multinational pharmaceutical company. It is the world's sixth-largest pharmaceutical company. It has its headquarters in Brentford, London. It has the highlights about £26.5bn Group turnover, and 39% Group turnover outside USA and Europe. Both two companies have a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. Ratio …show more content…
That means the company ability and speed to make the assets change into cash. The more easily of the assets change into cash for a listing company, the more liquidity assets will be better. It become a common recognize that the current ratio should maintain as 1.5:1, the company’s solvency will be sufficient. The Astra company current ratio was present the ratio dropped every year. In this form, the Astra company have an adequate solvency in 2010. The GSK company illustrate the descend trend in past four years. Especially in 2012, it is lower than level. Compare with 2013, the ratio have a slim rise. The current ratio is higher, the current assets transfer is faster. Higher current ratio indicated that current assets are sufficient to cover the short-term payment. To compare the two companies current ratio. Even though, they also have the drop trend, but the Astra company is better than the GSK company, that means the Astra company current assets transfer faster than GSK company, and their ability of pay off debts also better than GSK