Answered step by step
Verified Expert Solution
Question
1 Approved Answer
EDGAR: Raytheon (ticker: RTX) and Northrop Grumman (ticker: NOC) Visit www.sec.gov/edgar and search for the annual reports (10-K) of Raytheon/ United Technolgies and Northrop Grumman
EDGAR: Raytheon (ticker: RTX) and Northrop Grumman (ticker: NOC) Visit www.sec.gov/edgar and search for the annual reports (10-K) of Raytheon/ United Technolgies and Northrop Grumman for the year ended December 31, 2019, using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system). Locate the balance sheet and income statement of each company. Required: Calculate the return on equity (ROE) for both companies. For Raytheon, use "Net income attributable to common shareowners" and "Total equity" to calculate the ratio. For Northrop Grumman, use "Net earnings" and "Total shareholders' equity". Which company delivers a higher return to shareholders based on ROE? Calculate the return on assets (ROA) for both companies. Which company delivers a higher return to shareholders based on ROA? Explain how a company can have a slightly higher ROA than its competitor, but a much higher ROE
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started