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The company’s earning quality is depend upon its net income, operating net income, price earnings, earning per share and return on assets. Comparatively, the earning quality of Astra Zeneca is better than Glaxo smith which was found by above financial analysis. Earning per Share is the one way for investors to evaluate whether the financial performances of companies are up to investor’s expectation and earnings per share of Astra is 5.0746742, which is marginally higher than Glaxo so investor’s have high expectation on Astra Zeneca. The net income of Astra is higher than Glaxo so that Astra have capacity can survive in competitive market with high results. Astra Zeneca, with high net income and also has high earning per share figures and command high share price in a market. The advantage of a high share price is ease of financing and less dilution, because the Astra needs to sell relatively few shares to finance its investment.
Return on Assets is used as a way to measure management’s ability to make a profit from the Astra company assets. The Astra Zeneca have higher return on assets ( 0.2843979), which is slightly higher than Glaxo so that, the higher return on assets of Astra Zeneca have more efficient management is at managing and better using their assets.
Astra, the net operating income is higher than Glaxo so that higher net operating income is viewed as a good measure of company performance. As results, both companies have good net operating income but in comparison, Astra have better so that investor’s measure performance of Astra Zeneca is better than Glaxo.
However, the price earning of Glaxo is better than Astra but more than price earning, the Astra have better net income, earning per share, net operating income and return on assets so that Astra Zeneca have better earning quality attributes than

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