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2(A)Profit Margin ratio Company Net Income/Net Sales Western Tech 474.0/10697.0*100 4.43% Lativa 5.2/133.5*100 3.90% 2(B) Return on Total assets Company Net Income/ Average total assets
2(A)Profit Margin ratio | |||||
Company | Net Income/Net Sales | ||||
Western Tech | 474.0/10697.0*100 | 4.43% | |||
Lativa | 5.2/133.5*100 | 3.90% | |||
2(B) Return on Total assets | |||||
Company | Net Income/ Average total assets | ||||
Western Tech | 474.0/6576.95*100 | 7.21% | |||
Lativa | 5.2/82.75*100 | 0.06 | |||
2(CC) Return on Equity | |||||
Company | Net income-Preferred Dividend/Average Shareholder's Equity | ||||
Western Tech | 474.0-0/3914.85*100 | 12.10% | |||
Lativa | 5.2/65.95*100 | 7.90% |
which company (2) would be the better investment?
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