Calculate the following ratios: return on equity, return on assets (levered), return on sales (levered), asset turnover, and financial leverage.
Calculate the following ratios: return on equity, return on assets (levered), return on sales (levered), asset turnover, and financial leverage.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate the following ratios: return on equity, return on assets (levered), return on sales (levered), asset turnover, and financial leverage.

Transcribed Image Text:### Financial Overview
This section provides a summary of financial data for the years 2018 and 2017, expressed in millions.
#### Balance Sheet
- **Total Assets:**
- 2018: $34,986 million
- 2017: $33,551 million
- **Shareholders' Equity:**
- 2018: $14,127 million
- 2017: $11,847 million
#### Income Statement
- **Net Sales:**
- 2018: $22,561 million
- 2017: $20,776 million
- **Net Income:**
- 2018: $4,920 million
- 2017: $1,007 million
This data illustrates the financial performance and position of the company, showcasing increases in assets, equity, sales, and income from 2017 to 2018.
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