Question
Graphical representations of the Facebook 2022 income statement and average balance sheet data (2021-2022) follow (in millions). Compute the following amounts for year 2022. Enter
Graphical representations of the Facebook 2022 income statement and average balance sheet data (2021-2022) follow (in millions). Compute the following amounts for year 2022. Enter your responses below. Do not round intermediate calculations. a. Compute return on equity (ROE). [ Select ] ["20.74%", "107.45%", "13.19%", "18.52%", "14.44%"] b. Calculate ROE using the ROA and Financial Leverage (FL) components. (Financial leverage equals average total assets divided by average stockholders equity.)
ROE | = | ROA | FL | |
[ Select ] ["27.92%", "14.44%", "18.52%", "5.32%", "22.96%"] | = | [ Select ] ["78.35%", "59.54%", "19.90%", "13.19%", "10.29%"] | [ Select ] ["0.71", "0.40", "1.09", "1.07", "1.40"] |
c. Calculate ROA using the Profit Margin (PM) and Asset Turnover (AT) components.
ROA | = | PM | AT | |
[ Select ] ["13.19%", "16.36%", "12.28%", "27.92%", "18.52%"] | = | [ Select ] ["15.52%", "13.19%", "19.90%", "13.53%", "18.52%"] | [ Select ] ["1.51", "0.52", "0.93", "0.66", "0.88"] |
d. Confirm the full DuPont formula: ROE = PM AT FL.
ROE | = | PM | AT | FL | ||
[ Select ] ["27.92%", "18.52%", "14.44%", "22.96%", "5.32%"] | = | [ Select ] ["13.19%", "18.52%", "13.53%", "19.90%", "15.52%"] | [ Select ] ["1.51", "0.66", "0.88", "0.93", "0.52"] | [ Select ] ["1.07", "0.40", "0.71", "1.40", "1.09"] |
Graphical representations of the Facebook 2022 income statement and average balance sheet data (2021-2022) follow (in millions Compute the following amounts for year 2022. Enter your responses below. Do not round intermediate calculations
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