Question
Create a table within your discussion post that includes the following information: the financial data used to calculate each ratio in the 2 years for
Create a table within your discussion post that includes the following information:
- the financial data used to calculate each ratio in the 2 years for your chosen company
- the last 2 years (clearly labeled)
- the calculations and the concluded ratio
- Explain what your two ratios measure.
I have the two calculations below (hoping they are correct), but I do not know how to build a table with the info and how to explain the two ratios measured. I appreciate your help in advance!
ROA (Return on Investment) is a ratio that measures how profitable a company is, given its assets.
ROA = Net Income / Average Total Assets
ROA for 2022: ROA = $99,803,000 / $352,755,000 ROA = 0.2829
ROA for 2021:
LENGTH = $94,680,000 / $351,002,000
LENGTH = 0.2697
ROE (Return on Equity) shows the percentage of how profitable a company's assets are in generating revenue.
ROE = Net Income / Average Stockholders' Equity
ROE for 2022: ROE = $99,803,000 / $50,672,000 ROE = 1.9696
ROE for 2021:
ROE = $94,680,000 / $63,090,000
ROE = 1.5007
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