Applying Tableau Profitability Ratios [LO4-10] In the Chapter 3 Applying Tableau, you compared two companies' liquidity. In this case, you continue in your role as an analyst conducting research into the relative merits of investing in one or both of these companies. For this case, you will assess the companies' retum on assets and how that return is related to both profit margin and asset tumover. Tobleou instructions: For this case, you will create several calculations and produce a fext chart of profitability ratios to compare and contrast the two companies, To do so. you will need to be able to change data from continuous to discrefe. 1. Download the Excel file Miscount Goods Big Stote Financials" 2. Open Tableau and connect to the Excel file. 3. Click on the "Sheet1" tab at the bottom of the canvas, to the right of the Data Source at the bottom of the screen. 4. Drag "Year" and "Company" to the Rows shelf. Change "Year" to discrete by right-clicking and selecting "Discrete." 5. Drag the "Net income/lloss). "Net sales." and "Average total assets" under Measure Names to the Rows shelf. Change each to discrete, following the process above. 6. Create a calculated field by clicking the "Analysis" tab at the top of the screen and selecting "Create Calculated Field." A calculation box will pop up. Name the calculation "Return on Assets." In the calculation box, from the Rows shell, drag "Net incomeilloss)." type a divislon sign, then drag "Average total assets" beside it. Make sure the box says that the calculaton is valid and click OK 7. Repeat the process by cieating a calculated field named "Profit Margin on Sales" that consists of "Net incomerloss)," divided by "Net sales." 8. Repeat the process one more time by creating a calculated field "Asset Tulnover" that consists of "Net sales" divided by "Average total assets." 9. Drag the newy created 'Retum on Assets' to add it to the Rows sheil. Format it to discrete. Right cilck on Rotum on Assets and click Format, On the left, you will see a format bat. Under Default, choose Alignment, then Horizontal Centec. Then cick on Numbers and choose Percentage. 10. Drag the newly created "Proft Margin on Sales' and "Asset Tumower" to the Rows shelf Format them both as disciete and center alkgned "Profit Margin on Sales" should be formatted as percentage. "Asset Tumover" should be formatted as Number (Custom) with 2 decinal places. 11. Rightelick the "Net income I (loss). " Net sales." and "Average total assets" on the Rows sheif and un-select" Show headet". This Wie hicle these items from view but still atlow them to be used in formulas. 12. Double-chick the tab at the botiom of the poge and type Profitability Ratios to change the name of the sheet. 13. To hide the abc column, Which appears when all varables are discrete, click on the Marks Card, and choose Polygon. Ihis wit hide the letters. Then click and drag the edge of the column to make it as small as posslble. Assets." "Prota Margin on Sales" and "Asset Tuinover" to the Rows theif. 15. Drag "Compary" under Tables to "Color" on the "Art section of the Marks card You should now see fwo lines in each of the three graphs. Kequired: Based on the visualization you created, answer the following questions: A. What is the Big Store's return on assets in (a) 2012 and (b) 2021 ? B. What is the Discount Goods's return on assets in (a) 2012 and (b) 2021? To help determine why the relative profitablility of the two companies has shifted ovef the ten-year period and to get a better company: to-company comparison, drag the second "pill": (Yeor Dimension) to the'left of the "pill": (Compony Dimension in the text chart). C. The return on assets is a result of the profit margin and the asset turnover. Demonstrate this for Big Store in 2021 by showing that the profit margin times the asset tumover equals return on assets. D. Analyzing the asset turnover ratios over the ten year period, is Big Store's asset tumover (a) generally increasing. (b) roughly the some, or (c) generally decieasing from year to year? E. Analyzing the asset turnover ratios over the ten year period, is Discount Goods' turnover (o) generally increasing. (b) roughly the same, or (c) generally decieasing from yeat to year? F. As of 2021, Which company reports a more favorable return on assets and is this primarily attributable to its asset fumover of profit margin? Complete this question by entering your answers in the tabs below. What is the Bro store and Discount Goods's retuin on assets in (a) 2012 and (b) 2021 ? (Roand youl answers ta 2 decimat places. ? A. What is the Big Store's return on assets in (a) 2012 and (b) 2021? B. What is the Discount Goods's return on assets in (a) 2012 and (b) 2021? To help determine why the relative profitability of the two companles has shifted over the ten-year period and to get a better company. to-company comparison, drag the second "pill": (Year Dimension) to the left of the "pill:: (Company Dimension in the text chart). C. The return on assets is a result of the profit margin and the asset turnover. Demonstrate this for Big Store in 2021 by showing that the profit margin times the asset turnover equals return on assets. D. Analyzing the asset turnover ratios over the ten-year period, is Big Store's asset tumover (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year? E. Analyzing the asset tumover ratios over the ten-year period, is Discount Goods' turnover (a) generally increasing. (b) roughly the same, or (c) generally decreasing from year to year? F. As of 2021, which company reports a more favorable return on assets and is this primatily attributable to its asset tumover or profit margin? Complete this question by entering your answers in the tabs below. The return on assets is a result of the profit mamin and the asset turnover, Demonstrate this for B2g Store in 2021 tw showing that the ptofit margin times the asset turnover equals return on assets. (Round your answers to 2 decimal places.) company comparison, drag the second "pill": (Year Dimension) to the left of the "pill:: (Company Dimension in the text chart). C. The return on assets is a result of the profit margin and the asset turnover. Demonstrate this for Big Store in 2021 by showing that the profit margin times the asset turnover equals return on assets. D. Analyzing the asset tumover ratios over the ten-year period, is Big Store's asset turnover (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year? E. Analyzing the asset turnover ratios over the ten-year perlod, is Discount Goods' turnover (a) generally increasing. (b) roughly the same, or (c) generally decreasing from year to year? F. As of 2021. which company reports a more favorable return on assets and is this primarily attributable to its asset turnover or profit margin? Complete this question by entering your answers in the tabs below. D. Anolyzing the asset turnover ratios over the ten-year period, is big Store's assot turnover (a) generally increasing, (b) roughly the same, or (c) gener decreasing tiom year to year? 1. Analyzing the asset tumover ratios over the ten-year perlod, is Discount Goods' turnover (a) generally increasing, (b) roughly the same, ar (c) genera decreasing from year to year? F. As of 2021, which company reports a mote favorable return on asseth and is this primarity attributable to its asset turnover. of profit matgin? Applying Tableau Profitability Ratios [LO4-10] In the Chapter 3 Applying Tableau, you compared two companies' liquidity. In this case, you continue in your role as an analyst conducting research into the relative merits of investing in one or both of these companies. For this case, you will assess the companies' retum on assets and how that return is related to both profit margin and asset tumover. Tobleou instructions: For this case, you will create several calculations and produce a fext chart of profitability ratios to compare and contrast the two companies, To do so. you will need to be able to change data from continuous to discrefe. 1. Download the Excel file Miscount Goods Big Stote Financials" 2. Open Tableau and connect to the Excel file. 3. Click on the "Sheet1" tab at the bottom of the canvas, to the right of the Data Source at the bottom of the screen. 4. Drag "Year" and "Company" to the Rows shelf. Change "Year" to discrete by right-clicking and selecting "Discrete." 5. Drag the "Net income/lloss). "Net sales." and "Average total assets" under Measure Names to the Rows shelf. Change each to discrete, following the process above. 6. Create a calculated field by clicking the "Analysis" tab at the top of the screen and selecting "Create Calculated Field." A calculation box will pop up. Name the calculation "Return on Assets." In the calculation box, from the Rows shell, drag "Net incomeilloss)." type a divislon sign, then drag "Average total assets" beside it. Make sure the box says that the calculaton is valid and click OK 7. Repeat the process by cieating a calculated field named "Profit Margin on Sales" that consists of "Net incomerloss)," divided by "Net sales." 8. Repeat the process one more time by creating a calculated field "Asset Tulnover" that consists of "Net sales" divided by "Average total assets." 9. Drag the newy created 'Retum on Assets' to add it to the Rows sheil. Format it to discrete. Right cilck on Rotum on Assets and click Format, On the left, you will see a format bat. Under Default, choose Alignment, then Horizontal Centec. Then cick on Numbers and choose Percentage. 10. Drag the newly created "Proft Margin on Sales' and "Asset Tumower" to the Rows shelf Format them both as disciete and center alkgned "Profit Margin on Sales" should be formatted as percentage. "Asset Tumover" should be formatted as Number (Custom) with 2 decinal places. 11. Rightelick the "Net income I (loss). " Net sales." and "Average total assets" on the Rows sheif and un-select" Show headet". This Wie hicle these items from view but still atlow them to be used in formulas. 12. Double-chick the tab at the botiom of the poge and type Profitability Ratios to change the name of the sheet. 13. To hide the abc column, Which appears when all varables are discrete, click on the Marks Card, and choose Polygon. Ihis wit hide the letters. Then click and drag the edge of the column to make it as small as posslble. Assets." "Prota Margin on Sales" and "Asset Tuinover" to the Rows theif. 15. Drag "Compary" under Tables to "Color" on the "Art section of the Marks card You should now see fwo lines in each of the three graphs. Kequired: Based on the visualization you created, answer the following questions: A. What is the Big Store's return on assets in (a) 2012 and (b) 2021 ? B. What is the Discount Goods's return on assets in (a) 2012 and (b) 2021? To help determine why the relative profitablility of the two companies has shifted ovef the ten-year period and to get a better company: to-company comparison, drag the second "pill": (Yeor Dimension) to the'left of the "pill": (Compony Dimension in the text chart). C. The return on assets is a result of the profit margin and the asset turnover. Demonstrate this for Big Store in 2021 by showing that the profit margin times the asset tumover equals return on assets. D. Analyzing the asset turnover ratios over the ten year period, is Big Store's asset tumover (a) generally increasing. (b) roughly the some, or (c) generally decieasing from year to year? E. Analyzing the asset turnover ratios over the ten year period, is Discount Goods' turnover (o) generally increasing. (b) roughly the same, or (c) generally decieasing from yeat to year? F. As of 2021, Which company reports a more favorable return on assets and is this primarily attributable to its asset fumover of profit margin? Complete this question by entering your answers in the tabs below. What is the Bro store and Discount Goods's retuin on assets in (a) 2012 and (b) 2021 ? (Roand youl answers ta 2 decimat places. ? A. What is the Big Store's return on assets in (a) 2012 and (b) 2021? B. What is the Discount Goods's return on assets in (a) 2012 and (b) 2021? To help determine why the relative profitability of the two companles has shifted over the ten-year period and to get a better company. to-company comparison, drag the second "pill": (Year Dimension) to the left of the "pill:: (Company Dimension in the text chart). C. The return on assets is a result of the profit margin and the asset turnover. Demonstrate this for Big Store in 2021 by showing that the profit margin times the asset turnover equals return on assets. D. Analyzing the asset turnover ratios over the ten-year period, is Big Store's asset tumover (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year? E. Analyzing the asset tumover ratios over the ten-year period, is Discount Goods' turnover (a) generally increasing. (b) roughly the same, or (c) generally decreasing from year to year? F. As of 2021, which company reports a more favorable return on assets and is this primatily attributable to its asset tumover or profit margin? Complete this question by entering your answers in the tabs below. The return on assets is a result of the profit mamin and the asset turnover, Demonstrate this for B2g Store in 2021 tw showing that the ptofit margin times the asset turnover equals return on assets. (Round your answers to 2 decimal places.) company comparison, drag the second "pill": (Year Dimension) to the left of the "pill:: (Company Dimension in the text chart). C. The return on assets is a result of the profit margin and the asset turnover. Demonstrate this for Big Store in 2021 by showing that the profit margin times the asset turnover equals return on assets. D. Analyzing the asset tumover ratios over the ten-year period, is Big Store's asset turnover (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year? E. Analyzing the asset turnover ratios over the ten-year perlod, is Discount Goods' turnover (a) generally increasing. (b) roughly the same, or (c) generally decreasing from year to year? F. As of 2021. which company reports a more favorable return on assets and is this primarily attributable to its asset turnover or profit margin? Complete this question by entering your answers in the tabs below. D. Anolyzing the asset turnover ratios over the ten-year period, is big Store's assot turnover (a) generally increasing, (b) roughly the same, or (c) gener decreasing tiom year to year? 1. Analyzing the asset tumover ratios over the ten-year perlod, is Discount Goods' turnover (a) generally increasing, (b) roughly the same, ar (c) genera decreasing from year to year? F. As of 2021, which company reports a mote favorable return on asseth and is this primarity attributable to its asset turnover. of profit matgin