Required: a. Calculate ROI for 2014. Round your percentage answer to two decimal places. b. Calculate ROE for 2014. Round your percentage answer to one decimal place. Calculate working capital at December 31, 2014. с.
Required: a. Calculate ROI for 2014. Round your percentage answer to two decimal places. b. Calculate ROE for 2014. Round your percentage answer to one decimal place. Calculate working capital at December 31, 2014. с.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ratios
Return on Investment (ROI) is used to measure overall profitability of the business. It can be calculated as follows:
Return on Equity (ROE) represents the company’s profitability over the owner’s capital. It can be calculated as follows:
Net profit ratio shows the net income margin on sales. It may be calculated as follows:
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