The net sales, net income and total assets for Aaron Shipping, Inc. for a five-year period is shown in the following table. Use DuPont analysis to compute rate of return on average total assets for 2010 through 2012. (In thousands) 2012 2011 2010 2009 2008 Net sales Net income 50 Total assets 308 269 252 231 $900 $400 $352 $314 $296 39 46 37 24 209 Staples, Inc. is one of the largest suppliers of office products in the United States. It had net income of $738.7 million and sales of $24,275.5 million in 2009. Its total assets were $13,073.1 million at the beginning of the year and $13,717.3 million at the end of the year. What is Staples, Inc.'s (a) asset turnover ratio and (b) profit margin ratio? (Round to two decimals.) Provide a brief interpretation of your results.
The net sales, net income and total assets for Aaron Shipping, Inc. for a five-year period is shown in the following table. Use DuPont analysis to compute rate of return on average total assets for 2010 through 2012. (In thousands) 2012 2011 2010 2009 2008 Net sales Net income 50 Total assets 308 269 252 231 $900 $400 $352 $314 $296 39 46 37 24 209 Staples, Inc. is one of the largest suppliers of office products in the United States. It had net income of $738.7 million and sales of $24,275.5 million in 2009. Its total assets were $13,073.1 million at the beginning of the year and $13,717.3 million at the end of the year. What is Staples, Inc.'s (a) asset turnover ratio and (b) profit margin ratio? (Round to two decimals.) Provide a brief interpretation of your results.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The net sales, net income and total assets for Aaron Shipping, Inc. for a five-year
period is shown in the following table. Use DuPont analysis to compute rate of return
on average total assets for 2010 through 2012.
(In thousands) 2012 2011 2010 2009 2008
Net sales
Net income
50
Total assets 308 269 252 231
$900 $400 $352 $314 $296
39 46 37 24
209
Staples, Inc. is one of the largest suppliers of office products in the United States. It
had net income of $738.7 million and sales of $24,275.5 million in 2009. Its total assets
were $13,073.1 million at the beginning of the year and $13,717.3 million at the end of
the year.
What is Staples, Inc.'s (a) asset turnover ratio and (b) profit margin ratio?
(Round to two decimals.)
Provide a brief interpretation of your results.
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