Question
Company A has an Asset turnover ratio of .531, return on asset ratio of .127, and return on equity of .165. What does that tell
Company A has an Asset turnover ratio of .531, return on asset ratio of .127, and return on equity of .165. What does that tell me about company A?
Company B has an Asset turnover ratio of 1.553, return on asset ratio of .012, and return on equity of .07. What does that tell me about company B?
Compare Company A to Company B.
The industry average has an Asset turnover ratio of .81, return on asset ratio of .113, and return on equity of .2903. How does Company A compare to the industry average?
What can Company A do to improve its returns both on assets and on equity?
Is Company A deficient in its ability to generate profits from its assets and from its equity investment?
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Financial And Managerial Accounting Vol 1
Authors: John Wild, Ken Shaw, Barbara Chiappetta
4th Edition
0077318358, 978-0077318352
