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As of December 31, 2023, Saudi Aramco, the world's largest oil company, reported the following financial data: Income Statement: Total Revenue: SAR 500,000,000 Cost of

As of December 31, 2023, Saudi Aramco, the world's largest oil company, reported the following financial data:

Income Statement:

  • Total Revenue: SAR 500,000,000
  • Cost of Goods Sold: SAR 150,000,000
  • Operating Expenses: SAR 100,000,000
  • Net Income: SAR 250,000,000

Balance Sheet:

  • Total Assets: SAR 1,000,000,000
  • Total Liabilities: SAR 300,000,000
  • Shareholder's Equity: SAR 700,000,000

a) Compute the gross profit margin and net profit margin for Saudi Aramco. b) Calculate the return on assets (ROA) and return on equity (ROE) for Saudi Aramco. c) Discuss the financial leverage and efficiency of Saudi Aramco based on the calculated ratios.

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