Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Analyzing Financial Statement Data Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the
Analyzing Financial Statement Data Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the following ratios for Year 1 and Year 2.
| (amounts in millions) | Year 1 | Year 2 |
|---|---|---|
| Balance sheet | ||
| Total assets | $30,435 | $28,138 |
| Shareholders equity | 10,202 | 11,208 |
| Income statement | ||
| Net sales | $19,380 | $19,207 |
| Net income | 2,388 | 3,000 |
Round all answers to two decimal places.
| Year 1 | Year 2 | |||
|---|---|---|---|---|
| a. Return on equity | Answer
| % | Answer
| % |
| b. Return on assets (levered) | Answer
| % | Answer
| % |
| c. Return on sales (levered) | Answer
| % | Answer
| % |
| d. Total asset turnover | Answer
| Answer
| ||
| e. Financial leverage | Answer
| Answer
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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