$millions Total Assets Net Income Sales Equity $241,225 $8,004 $535,845 $79,746 224,974 11,834 520,549 85,656 218,708 16,372 505,383 85,578 2018 2017 2016 a. Compute return on equity (ROE) for the two recent years. b. Compute return on assets (ROA) for the two recent years. C. Compute profit margin (PM) for the two recent years. d. Compute asset turnover (AT) for the two recent years. Round ROE, ROA and PM to one decimal place (example: 0.2345 = 23.5%). Round AT to two decimal places (example: 1.35). ROE ROA PM AT 2018 9.7% * 3.4% * 1.5% x 2.3 x 2017 13.8% x 5.3% x 2.3 % x 2.35 x e. Which of the following best explains the change in ROA during 2018? The company's profitability weakened considerably. The company's asset productivity weakened considerably.x The company had higher sales in 2018. The company had higher assets 2018.
$millions Total Assets Net Income Sales Equity $241,225 $8,004 $535,845 $79,746 224,974 11,834 520,549 85,656 218,708 16,372 505,383 85,578 2018 2017 2016 a. Compute return on equity (ROE) for the two recent years. b. Compute return on assets (ROA) for the two recent years. C. Compute profit margin (PM) for the two recent years. d. Compute asset turnover (AT) for the two recent years. Round ROE, ROA and PM to one decimal place (example: 0.2345 = 23.5%). Round AT to two decimal places (example: 1.35). ROE ROA PM AT 2018 9.7% * 3.4% * 1.5% x 2.3 x 2017 13.8% x 5.3% x 2.3 % x 2.35 x e. Which of the following best explains the change in ROA during 2018? The company's profitability weakened considerably. The company's asset productivity weakened considerably.x The company had higher sales in 2018. The company had higher assets 2018.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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ACC610
Transcribed Image Text:Smiltons Total Assets Net Income Sales Equity
$241,225
$8,004 $535,845 $79,746
224,974
11,834 520,549 85,656
218,708
16,372 505,383 85,578
2018
2017
2016
a. Compute return on equity (ROE) for the two recent years.
b. Compute return on assets (ROA) for the two recent years.
c. Compute profit margin (PM) for the two recent years.
d. Compute asset turnover (AT) for the two recent years.
Round ROE, ROA and PM to one decimal place (example: 0.2345 = 23.5%).
Round AT to two decimal places (example: 1.35).
ROE
ROA
PM
AT
2018
9.7% *
3.4% *
1.5% x
2.3 x
2017
13.8% x
5.3% x
2.3% *
2.35 x
e. Which of the following best explains the change in ROA during 2018?
The company's profitability weakened considerably.
OThe company's asset productivity weakened considerably.x
The company had higher sales in 2018.
The company had higher assets 2018.
Week 1 Hom
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