High Liner Foods Incorporated processes and markets frozen seafood products. TransCanada Pipelines Limited is in the oil and gas industry in Canada and abroad. Both companies are being considered as potential investment opportunities by the executive team of your company. In addition to research already performed, the following ratios need to be evaluated.

Required
Compare and evaluate the ratios, preparing brief comments that you will share with the executive team of your company, who are primarily concerned about long-term profitability.
Analysis Component: Go to www.sedar.com and use the audited financial statements for High Liner Foods Incorporated for its year ended December 31, 2011 and for TransCanada Pipelines Limited for its year ended December 31, 2011, to calculate and compare each company’s return on total assets. How do the results of this calculation impact your evaluationabove?

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High Liner Foods Incorporated Year Ended January 1, 2011 TransCanada Plpellnes Limited Year Ended December 31, 2011 Ratio 17.87% 0.19 times 7.13 times 60.71% 0.75:1 Profit margin Total asset turnover.... 3.39% 1.33 times turnover ...10.62 times 54.42% 1.51:1 Debt ratio