Question
Given the financial details for Company G3 and Company H3: Criteria Company G3 Company H3 Net Income $3,000,000 $2,700,000 Total Assets $30,000,000 $27,000,000 Total Liabilities
Given the financial details for Company G3 and Company H3:
Criteria | Company G3 | Company H3 |
Net Income | $3,000,000 | $2,700,000 |
Total Assets | $30,000,000 | $27,000,000 |
Total Liabilities | $23,000,000 | $21,000,000 |
Compute the return on assets (ROA) for both companies and analyze which company appears to be more efficient in generating profits relative to its assets.
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Introduction to Corporate Finance What Companies Do
Authors: John Graham, Scott Smart
3rd edition
9781111532611, 1111222282, 1111532613, 978-1111222284
