In order to estimate the profitability of companies, several measures have been worked out which can lead investors to right decisions. Liquidity analysis ratios include current ratio, quick ratio and net working capital ratio and they reflect the current or short-term situation within company finances. Profitability analysis ratios include return on assets, return on equity and return on common equity, profit margin and earnings per share and are more mid-term ratios reflecting pricing company strategy and ability to generate earnings. Asset turnover ratio, accounts receivable turnover ratio, inventory turnover ratio are measures of activity analysis for companies. Capital structure analysis ratios include debt to equity ratio and interest coverage ratio. There are also capital market measures. We shall incorporate some of each segment of financial performance measures to compare operations of two companies and draw our conclusions as for possible investment opportunities.

             The story of one of the greatest multinational corporations, Johnson & Johnson, begins in the 1880s, when Robert Wood Johnson heard the idea of known English surgeon to develop a treatment to kill the airborne germs in the hospital room by sterilizing instruments and thus protect more wound area on the body to decrease the existing then postoperative mortality rate of 90%. Mister Johnson joined his two brothers and the first were a form of improved medicine plasters containing antisepsis. Later, they discovered to include together with plaster package talc for patients to soothe the skin. With years passing by, affiliates of Johnson & Johnson were created in more than 50 countries of the world employing more than 113,800 workers.

             Eli Lilly company was founded by another entrepreneur in 1876 Eli Lilly whose main idea was to produce drugs of the highest possible quality, based on best science of the day and the medicine should be dispensed only by the advice of the doctors.