Computing and Interpreting Financial Statement Ratios Following are selected ratios of Norfolk Southern for 2018 and 2017. Return on Assets (ROA) Component 2018 2017 Profitability (Net income/Sales) 25.3% 53.2% Productivity (Sales/Average assets) 0.338 0.319 a. Was the company profitable in 2018? Answer b. Was the company more profitable in 2018 or 2017? Answer c. Is the change in productivity a positive or negative development? Answer d. Compute the company’s ROA for 2018 and for 2017. Note: Round answers to one decimal places (example: 10.4%). ROA 2018 Answer 2017 Answer e. From the information provided, which of the following best explains the change in ROA during 2018? Answer
Computing and Interpreting Financial Statement Ratios Following are selected ratios of Norfolk Southern for 2018 and 2017. Return on Assets (ROA) Component 2018 2017 Profitability (Net income/Sales) 25.3% 53.2% Productivity (Sales/Average assets) 0.338 0.319 a. Was the company profitable in 2018? Answer b. Was the company more profitable in 2018 or 2017? Answer c. Is the change in productivity a positive or negative development? Answer d. Compute the company’s ROA for 2018 and for 2017. Note: Round answers to one decimal places (example: 10.4%). ROA 2018 Answer 2017 Answer e. From the information provided, which of the following best explains the change in ROA during 2018? Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Computing and Interpreting Financial Statement Ratios
Following are selected ratios of Norfolk Southern for 2018 and 2017.
| Return on Assets (ROA) Component | 2018 | 2017 |
|---|---|---|
| Profitability (Net income/Sales) | 25.3% | 53.2% |
| Productivity (Sales/Average assets) | 0.338 | 0.319 |
a. Was the company profitable in 2018?
Answer
b. Was the company more profitable in 2018 or 2017?
Answer
c. Is the change in productivity a positive or negative development?
Answer
d. Compute the company’s ROA for 2018 and for 2017.
Note: Round answers to one decimal places (example: 10.4%).
| ROA | |
|---|---|
| 2018 | Answer |
| 2017 | Answer |
e. From the information provided, which of the following best explains the change in ROA during 2018?
Answer
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