Question
4. As an outsider, we may not get detailed data about every single investment that companies have made. However, we can roughly assess a company's
4. As an outsider, we may not get detailed data about every single investment that companies have made. However, we can roughly assess a company's overall financial performance using a measure very similar to ROI (a very simple financial statement analysis).
1) Select a manufacturer, which must be a public company so their financial statements are publicly available (unless you own a firm and are willing to use the data).
2) Find the company's Net Income and Total Assets by the end of the fiscal year 2020 and 2019, respectively. Many companies publish their financial statements on their websites. Simply Google them and you should be able to find the numbers.
3) Calculate the return on assets (ROA) as Net Income/Total Assets. Compare the 2020 and 2019 ROA. What do you see in the change of the company's financial performance?
4) Don't forget to cite the source of the data!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started