Question
1. If a firm's capital turnover is $2.00 and its ROIC is 20%, what is its return on sales ? 2. Assume that Firm A
1. If a firm's capital turnover is $2.00 and its ROIC is 20%, what is its return on sales?
2. Assume that Firm A and Firm B are in the same retail industry and have similarly-sized stores. If Firm A's revenue per store is $4 million and Firm B's revenue per store is $1 million, then which of the following is most likely true?
Firm A's capital efficiency is higher than Firm B's.
Firm B's operating efficiency is higher than Firm A's.
Firm A's operating efficiency is higher than Firm B's
Firm B's capital efficiency is higher than Firm A's.
3. Firm A's net operating profit after tax was $6 million in 2020 and $4 million in 2019, and its invested capital was $21 million at the end of 2020 and $19 million at the end of 2019. What was Firm A's return on invested capital in 2020?
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
