Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2016 Computing Return on Equity and Return on Assets The following table contains financial statement information for OMV Group, which is a petrochemical company headquartered

image text in transcribed
image text in transcribed
image text in transcribed
2016 Computing Return on Equity and Return on Assets The following table contains financial statement information for OMV Group, which is a petrochemical company headquartered in Vienna euros millions 2018 2017 2015 Sales 25.223 22,244 21.186 Net profit (LOS) 3,958 1,783 (276) Assets 48.049 41.049 41,746 42,463 Equity 16.876 15,767 15,318 15.728 Required a. What was OMV Group's return on assets (ROA) for 2016, 2017, and 2018? b. Determine its profit margin (PM) for each of the three years 2016-2018. c. Determine its asset turnover (AT) for each of the three years 2016-2018. Notes: Round ROA and PM answers to one decimal place (ex: 0.2345 = 23.546). Round AT answers to two decimal places (ex: 0.56789 = 0.57). Use negative signs with answers, when appropriate. 2018 2017 2016 Return on assets (ROA) 96 96 Profit margin (PMD Asset turnover (AT) 96 04 d. What factor is mainly responsible for the change in OMV's RCA from 2016 to 2017? Is it profit margin or asset turnover or both d. What factor is mainly responsible for the change in OMV'S ROA from 2016 to 2017? Is it profit margin or asset turnover or both? . e. What factor is mainly responsible for the change in OMV'S ROA from 2017 to 2018? Is it profit margin or asset turnover or both? > f. Determine OMV Group's return on equity (ROE) for each of the three years 2016-2018. Notes: Round ROE answers to one decimal place (ex: 0,2345 - 23.596). Use negative signs with answers, when appropriate 2018 2017 2016 Return on equity (ROE) Check "Asset turnover (AT) d. What factor is mainly responsible for the change in OMV's ROA from 2016 to 20 Asset turnover Profit margin Both hly responsible for the change in OMV'S ROA from 2017 to 20 f. Determine OMV Group's return on equity (ROE) for each of the three years 2016- Notes: Round ROE answers to one decimal place (ex: 0.2345 = 23.5%). Use negative signs with answers, when appropriate. . 2018 2017 2016 Return on equity (ROE) 96 96 Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

De Gruyter Handbook Of Personal Finance

Authors: Grable, John E., Chatterjee, Swarn

1st Edition

3110727498, 978-3110727494

More Books

Students also viewed these Finance questions