Debt to Equity Ratio Trend ($ in 000s) Company / Year GPS Tru 2.2692 2.2049 2.1084 2.1384 2.0750 2.0777 1.9807 2.0 1.8626 1.8190 1.8219 1.5 Debt to Equity Ratio 1.0 0.5 0.0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2020 2021 Rate of Return on Shareholders' Equity ($ in 000s) Company / Year GPS 0.3134 0.3029 30.0% Tru 0.2726 0.2717 0.2242 20.0% 0.1936 0.1859 0.1828 0.1621 0.1261 10.0% Rate of Return on Assets Rate of return on Shareholder'. 0.0% 30.0% 20.0% 0.09523 0.08836 0.09585 0.09746 10.0% 0.07954 0.05437 0.06041 0.05922 0.05939 0.04469 0.0% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Questions: 1. Which of the two companies, GPS Corportation or Tru, Inc., finances a higher percentage of its assets by borrowed funds relative to funds invested by shareholders as measured by the debt to equity ratio in 2021? 2. Which of the two companies, GPS Corportation or Tru, Inc., indicates a higher profitability during the period 2017-2021 without regard to the sources of financing as measured by the return on assets ratio? 3.Which of the two companies, GPS Corportation or Tru, Inc., Indicates a higher effectiveness of employing recources provided by owners during the period 2017-2021 as measured by the return of shareholders equity ratio? 4. Management is using its borrowed funds to enhance the earnings for shareholders of A) GPS corportaion B) Tru Inc., C) Both firms, or D) Neither firm during the period 2017-2021? Debt to Equity Ratio Trend ($ in 000s) Company / Year GPS Tru 2.2692 2.2049 2.1084 2.1384 2.0750 2.0777 1.9807 2.0 1.8626 1.8190 1.8219 1.5 Debt to Equity Ratio 1.0 0.5 0.0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2020 2021 Rate of Return on Shareholders' Equity ($ in 000s) Company / Year GPS 0.3134 0.3029 30.0% Tru 0.2726 0.2717 0.2242 20.0% 0.1936 0.1859 0.1828 0.1621 0.1261 10.0% Rate of Return on Assets Rate of return on Shareholder'. 0.0% 30.0% 20.0% 0.09523 0.08836 0.09585 0.09746 10.0% 0.07954 0.05437 0.06041 0.05922 0.05939 0.04469 0.0% 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Questions: 1. Which of the two companies, GPS Corportation or Tru, Inc., finances a higher percentage of its assets by borrowed funds relative to funds invested by shareholders as measured by the debt to equity ratio in 2021? 2. Which of the two companies, GPS Corportation or Tru, Inc., indicates a higher profitability during the period 2017-2021 without regard to the sources of financing as measured by the return on assets ratio? 3.Which of the two companies, GPS Corportation or Tru, Inc., Indicates a higher effectiveness of employing recources provided by owners during the period 2017-2021 as measured by the return of shareholders equity ratio? 4. Management is using its borrowed funds to enhance the earnings for shareholders of A) GPS corportaion B) Tru Inc., C) Both firms, or D) Neither firm during the period 2017-2021
