Data analytics is the process of examining data sets in order to draw conclusions about the information

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Data analytics is the process of examining data sets in order to draw conclusions about the information they contain. If you haven’t completed any of the prior data analytics cases, follow the instructions listed in the Chapter 1 Data Analytics case to get set up. You will need to watch the videos referred to in the Chapters 1 - 3 Data Analytics cases. No additional videos are required for this case. All short training videos can be found here: https:// www.tableau.com/learn/training#getting-started. 

In the Data Analytics Cases in previous chapters, we applied Tableau to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc. regarding various aspects of their earnings performance and financial position. In this case, you focus on performance in terms of the ability of the two companies to generate a cash return on its assets. 


Required: 

While net income is usually considered the best measure of long-term profitability of a company, the cash return on assets ratio provides an indication of the actual cash flows generated by the company’s assets during each individual reporting period, not influenced by any income measurements or income recognition. For each of the two companies in the most recent five-year period, 2017-2021, use Tableau to calculate and display the trends for (a) the rate of return on assets [Net income / Total assets] and (b) the cash return on assets [Net cash flows from operating activities / Total assets]. Based upon what you find, answer the following questions: 

1. What was (a) the return on assets in 2021 and (b) the cash return on assets for the most recent five years (rounded to the nearest one-half percent) for Tru, Inc.? 

2. What was (a) the cash return on assets in 2021 and (b) the average cash return on assets (rounded to the nearest one-half percent) for the most recent five years for Tru, Inc.? 

3. Which of the two companies, GPS Corporation or Tru, Inc., indicates the most erratic pattern of performance during the period 2017-2021 as measured by the cash return on assets ratio?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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