a.
Introduction: The return on assets is a financial ratio which states that how profitably a company has employed its assets. In other words, how the company has utilized its assets to generate income.
Requirement 1
The return on assets of S company for the current year and the prior year.
b.
Introduction: Multiple factors can be responsible for causing the financial ratios to change from one year to another. The reasons for such change are then further analyzed in order to take appropriate action.
Requirement 2
Whether S’s return on assets has shown a favorable or unfavorable change.
c.
Introduction: Comparison between similar companies in the same industry is crucial to the assessment of the company’s performance. A company’s financial ratios, when compared with the industry data, can reveal lots of valuable information which the financial statements can not reveal.
Requirement 3
The S company’s return on assets for the current year is better or worse than companies A and G’s return on assets.
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FINANCIAL AND MANAGERIAL ACCOUNTING
- Please do not give image formatarrow_forwardQuestions related to the Statement of Profit or Loss a. Revenue is the income generated from normal business operations. What is the business operation of Emirates (i.e. what do they do? Do they provide services or sell products? What is the service they provide or product they sell in order to generate revenues?) . b. Did Emirates make profit in 2018 and 2017? Was there an increase or decrease? Justify your answers by providing the figures from the statement. c. Explain the Difference between Revenue and Other operating income – Provide one item that can be listed under Revenue and one item that can be listed under Other operating income of Emirates. You can refer to the corresponding Notes to the Financial Statements of Emirates. . PLEASE MAKE SURE THE ANSWER IS CORRECT 100%arrow_forwardKey comparative figures for both Apple and Google follow. Numbers shown are reported in millions of dollars. $ millions Liabilities + Equity Net income Revenues Apple Google Current Year Prior Year $ 365,725 Current Year $ 275,909 $ 338,516 55,256 260,174 59,531 265,595 34,343 161,857 Prior Year $ 232,792 30,736 136,819arrow_forward
- Profitability Ratios Provide brief definition of what Profitability ratios mean to the company. What are the differences between Apple and Samsung in relationship to each of the ratios? See attached for ratios Net Profit Margin Samsung vs Apple Gross Profit Margin Samsung vs Apple Return on Equity (ROE) Samsung vs Apple Net Return on Assets Samsung vs Apple 3. What does it mean to the company’s profitability? Is it good or bad?arrow_forwardRelying only on return on assets, would we invest in Google or Apple?arrow_forwardCompute returns on assets for AT&T and Verizon and answer the question below. Be sure to show your work. Key figures($ millions). AT&T Verizon Sales 126,723 110,875 Net Income 4,184 10,198 Average Assets 269,868 225,233 AT&T Verizon Which company is more successful in returning net income from its assets invested?arrow_forward
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- Hi, Please the attached file for the my question.arrow_forwarda. Revenue is the income generated from normal business operations. What is the business operation of Emirates (i.e. what do they do? Do they provide services or sell products? What is the service they provide or product they sell in order to generate revenues? b. . Did Emirates make profit in 2018 and 2017? Was there an increase or decrease? Justify your answers by providing the figures from the statement c. Explain the Difference between Revenue and Other operating income - Provide one item that can be listed under Revenue and one item that can be listed under Other operating income of Emirates. You can refer to the corresponding Notes to the Financial Statements of Emirates.arrow_forwardWhat have been the possible reasons for the changes in ROEs ? •Decompose the (Return on Equity) ROE into the main components: ROA and EM •Analyse the sources of Return on Asset (ROA) : Asset Utilisation and Profit Margin ratios. (PM) •Identify the sources of the changes in AU and PMarrow_forward
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