Using Return on Assets and Return on Equity to Compare Performance Across Companies Thiokol Corp. and Wyman-Gordon, Inc. In a recent fiscal year, Thiokol Corp. reported sales of $889.5 million and net income of $51.4 million. For the same year, Wyman-Gordon, reported sales of $499.6 million and net income of $25.2 million, about half the income of Thiokol. Both companies are in the same industry, aerospace and defense. Use the data provided below to compare financial performance for the two companies (amounts in millions). Thiokol $ 889.5 $ 51.4 $ 818.3 $ 447.9 Wyman-Gordon $ 499.6 $ 25.2 $ 375.9 $ 109.9 Sales Net income Total assets Shareholders' equity Calculate: Return on assets Return on equity Why is Return on equity so different for the two companies?
Using Return on Assets and Return on Equity to Compare Performance Across Companies Thiokol Corp. and Wyman-Gordon, Inc. In a recent fiscal year, Thiokol Corp. reported sales of $889.5 million and net income of $51.4 million. For the same year, Wyman-Gordon, reported sales of $499.6 million and net income of $25.2 million, about half the income of Thiokol. Both companies are in the same industry, aerospace and defense. Use the data provided below to compare financial performance for the two companies (amounts in millions). Thiokol $ 889.5 $ 51.4 $ 818.3 $ 447.9 Wyman-Gordon $ 499.6 $ 25.2 $ 375.9 $ 109.9 Sales Net income Total assets Shareholders' equity Calculate: Return on assets Return on equity Why is Return on equity so different for the two companies?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Financial Accounting
CMulford: Financial Statement Analysis: 13
Using Return on Assets and Return on Equity
to Compare Performance Across Companies
Thiokol Corp. and Wyman-Gordon, Inc.
In a recent fiscal year, Thiokol Corp. reported sales of $889.5
million and net income of $51.4 million. For the same year,
Wyman-Gordon, reported sales of $499.6 million and net
income of $25.2 million, about half the income of Thiokol.
Both companies are in the same industry, aerospace and
defense.
Use the data provided below to compare financial performance
for the two companies (amounts in millions).
Thiokol
$ 889.5
$ 51.4
$ 818.3
$ 447.9
Wyman-Gordon
$ 499.6
$ 25.2
$ 375.9
$ 109.9
Sales
Net income
Total assets
Shareholders' equity
Calculate:
Return on assets
Return on equity
Why is Return on equity so different for the two companies?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95823d46-3ccd-47c9-9141-bd6c7a4669e2%2Fd875b3b3-2ff8-47cd-81a5-bd4f85711eef%2Fzq8gxk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Financial Accounting
CMulford: Financial Statement Analysis: 13
Using Return on Assets and Return on Equity
to Compare Performance Across Companies
Thiokol Corp. and Wyman-Gordon, Inc.
In a recent fiscal year, Thiokol Corp. reported sales of $889.5
million and net income of $51.4 million. For the same year,
Wyman-Gordon, reported sales of $499.6 million and net
income of $25.2 million, about half the income of Thiokol.
Both companies are in the same industry, aerospace and
defense.
Use the data provided below to compare financial performance
for the two companies (amounts in millions).
Thiokol
$ 889.5
$ 51.4
$ 818.3
$ 447.9
Wyman-Gordon
$ 499.6
$ 25.2
$ 375.9
$ 109.9
Sales
Net income
Total assets
Shareholders' equity
Calculate:
Return on assets
Return on equity
Why is Return on equity so different for the two companies?
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