Sunset Café reports net income of $180,000, average total assets of $800,000, and average total liabilities of $320,000. Calculate the return on assets and return on equity ratios.
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Calculate the return on assets and return on equity ratio?
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- The average liabilities, average stockholders' equity, and average total assets are as follows: 1. Determine the following ratios for both companies, rounding ratios and percentagesto one decimal place: a. Return on total assets b. Return on stockholders' equity c. Times interest earned d. Ratio of total liabilities to stockholders' equity 2. Based on the information in (1), analyze and compare the two companies'solvency and profitability. Comprehensive profitability and solvency analysis Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year (in millions): Balance sheet information is as follows:LaDanion's Limos reports net income of $120,000, average total assets of $600,000, and average total liabilities of $240,000. Calculate LaDanion's return on assets and return on equity ratios.Do npt give image format
- Compute the following ratios for the most recent two years, show all values in the computations: 1.Current ratio 2.Accounts receivable turnover 3.Debt ratio(TotalLiabilities/Total Assets, as a percentage) 4.Debt-to-equity ratio Based on the results above, what conclusions can you make about the liquidity and solvency of the company?Find the following using the data bellow a. Accounts receivable B. Current assets C. Total assets D. Return on assets E. Common equity F. Quick ratioBased on the following financial data, calculate the ratios requested. (Round your answers to 4 decimal places.) Liabilities Liquid assets Monthly credit payments Monthly savings $11,600 Net worth $ 9,500 Current liabilities $ 750 Take-hone pay $ 190 Gross income $ 71,800 $ 1,575 $ 2,375 $ 3,600 a Debt ratio b. Current ratio c Debt-payments ratio d. Savings ratio
- Southern Style Realty has total assets of $485,390, net fixed assets of $250,000, current liabilities of $23,456, and long-term liabilities of $148,000. What is the total debt ratio? Can you provide the formula?Ratio Analysis Presented below are summary financial data from Porter's annual report: Amounts in millions Balance Sheet Cash and Cash Equivalents Marketable Securities Accounts Receivable (net) Total Current Assets Total Assets Current Liabilities Long-Term Debt- Shareholders' Equity Income Statement Interest Expense Net Income Before Taxes b. Quick ratio $1,850 19,100 9,367 39,088 123,078 38,450 7,279 68,278 Calculate the following ratios: (Round to 2 decimal points) a. Times-interest-earned ratio c. Current ratio 400 14,007Using the ratios below, summarize the financial performance of the company. LIQUIDITY RATIOS Current Ratio (times) 1.75 Quick Ratio (times) 0.52 Average Payment Period (days) 28.31 Days ASSET MANAGEMENT RATIOS Total Asset Turnover (times) 2.90 Average Collection Period (days) 24 Days Inventory Turnover (times) 5.70 FINANCIAL LEVERAGE RATIOS Total Debt to Total Assets 0.37% Equity Multiplier (times) 1.59 PROFITABILITY RATIOS Operating Profit Margin 5.66% Net Profit Margin 3.55% Return on Total Assets 16.57% Return on Equity 16.36% Earnings per Share $0.99
- Motorola Credit Corporation's annual report: Net revenue (sales) Net earnings Total assets Total liabilities Total stockholders' equity a. Find the total debt to total assets ratio. Note: Round your answer to the nearest hundredth percent. Total debt to total assets Return on equity b. Find the return on equity ratio. Note: Round your answer to the nearest hundredth percent. (dollars in millions) $ 297 163 2,175 1,880 295 Asset turnover c. Find the asset turnover ratio. Note: Round your answer to the nearest cent. Profit margin % % % d. Find the profit margin ratio on net sales. Note: Round your answer to the nearest hundredth percent.What is the common size percentage for the net fixed assets?a) Consider the financial ratios of ABK Bank and the average ratios of peer banks based on 2015 year-end data shown in the table below: Ratios ABK Bank Peer Banks Return on equity (ROE) 14.50% 7.40% Return on assets (ROA) Asset utilisation (AU) Expense ratio (ER) 1.68% 0.85% 6.65% 5.50% 4.95% 4.62% TAX 0.02% 0.03% Note that TAX = applicable income tax/total assets Compare and critically discuss the performance of ABK Bank and that of its peer banks. Conduct a return on equity decomposition analysis for ABK bank and the peer banks as part of your discussion. What are the possible limitations in your analysis?
