$millions Total Assets Net Income Sales Equity $241,225 $8,004 $535,845 $79,746 224,974 11,834 520,549 85,656 218,708 16,372 505,383 85,578 2018 2017 2016 a. Compute return on equity (ROE) for the two recent years. b. Compute return on assets (ROA) for the two recent years. C. Compute profit margin (PM) for the two recent years. d. Compute asset turnover (AT) for the two recent years. Round ROE, ROA and PM to one decimal place (example: 0.2345 = 23.5%). Round AT to two decimal places (example: 1.35). ROE ROA PM AT 2018 9.7% * 3.4% * 1.5% x 2.3 x 2017 13.8% x 5.3% x 2.3 % x 2.35 x e. Which of the following best explains the change in ROA during 2018? The company's profitability weakened considerably. The company's asset productivity weakened considerably.x The company had higher sales in 2018. The company had higher assets 2018.

$millions Total Assets Net Income Sales Equity $241,225 $8,004 $535,845 $79,746 224,974 11,834 520,549 85,656 218,708 16,372 505,383 85,578 2018 2017 2016 a. Compute return on equity (ROE) for the two recent years. b. Compute return on assets (ROA) for the two recent years. C. Compute profit margin (PM) for the two recent years. d. Compute asset turnover (AT) for the two recent years. Round ROE, ROA and PM to one decimal place (example: 0.2345 = 23.5%). Round AT to two decimal places (example: 1.35). ROE ROA PM AT 2018 9.7% * 3.4% * 1.5% x 2.3 x 2017 13.8% x 5.3% x 2.3 % x 2.35 x e. Which of the following best explains the change in ROA during 2018? The company's profitability weakened considerably. The company's asset productivity weakened considerably.x The company had higher sales in 2018. The company had higher assets 2018.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.
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