Computing Return on Equity and Return on Assets The following table reports financial statement information for Meta (Facebook's parent company). $ millions Total Assets Net Income Sales Equity FY3 FY2 $482,890 $431,566 $60,320 $303,183 $326,854 $102,362 $306,615 $324,685 FY1 $414,222 $67,980 $223,509 $333,554 Required a. Compute the following ratios for the two most recent years. NOTE: Round any intermediate calculations to the nearest whole dollar amount. Ratios Numerator Denominator Return on equity (ROE) Result FY3 FY2 Return on assets (ROA) FY3 FY2 Profit margin (PM) FY3 FY2 Asset turnover (AT) FY3 FY2 $ $ 96 96 $ $ 96 96 $ $ 96 96 b. Which of the following best explains the change in ROA during FY3? Check
Computing Return on Equity and Return on Assets The following table reports financial statement information for Meta (Facebook's parent company). $ millions Total Assets Net Income Sales Equity FY3 FY2 $482,890 $431,566 $60,320 $303,183 $326,854 $102,362 $306,615 $324,685 FY1 $414,222 $67,980 $223,509 $333,554 Required a. Compute the following ratios for the two most recent years. NOTE: Round any intermediate calculations to the nearest whole dollar amount. Ratios Numerator Denominator Return on equity (ROE) Result FY3 FY2 Return on assets (ROA) FY3 FY2 Profit margin (PM) FY3 FY2 Asset turnover (AT) FY3 FY2 $ $ 96 96 $ $ 96 96 $ $ 96 96 b. Which of the following best explains the change in ROA during FY3? Check
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter17: Financial Statement Analysis
Section17.4: Analyzing Financial Statements Using Financial Ratios
Problem 1WT
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning