Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
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?
Transcribed Image Text:APPLE INC 2019
= Net Profit
55,256
55,256.00
Net Profit Margin
21.24%
Net Sales
260,174
260,174.00
= Gross Profit
Gross Profit Margin
98,392
260,174
98,392.00
260,174.00
37.82%
Net Sales
= Net Income
55,256
90,488
55,256.00
98,817.50 / 2
Return on Equity (ROE)
56%
Average Shareholder's Equity
+ 107,147 =
= Net Income
55,256
55,256.00
%3D
Net Return on Assets
16%
Average Total Assets
338,516
+ 365,725 =
352,120.50 /2
SAMSUNG 2019
= Net Profit
18,652
18,652.00
%3D
Net Profit Margin
9.43%
Net Sales
197,690
197,690.00
= Gross Profit
Net Sales
71,354
71,354.00
Gross Profit Margin
36.09%
197,690
197,690.00
= Net Income
18,652
18,652.00
Return on Equity (ROE)
9%
Average Shareholder's Equity
225,559
+ 212,579 =
219,069.00 /2
= Net Income
18,652
18,652.00
Net Return on Assets
6%
Average Total Assets
302,511
+ 291,178 =
296,844.50 /2
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