Question
International Genetic Technologies (InGen) and The Resources Development Association (RDA) are companies involved in cutting-edge genetics research. Selected financial data for (InGen) and (RDA) are
International Genetic Technologies (InGen) and The Resources Development Association (RDA) are companies involved in cutting-edge genetics research. Selected financial data for (InGen) and (RDA) are provided below:
($ in millions) | InGen | RDA |
---|---|---|
Net sales | $130,245 | $90,916 |
Net income | 7,815 | 15,630 |
Operating cash flows | 15,600 | 18,436 |
Total assets, beginning | 155,400 | 118,452 |
Total assets, ending | 135,400 | 102,840 |
Required:
1. Calculate the return on assets for both companies.
2. Calculate the cash return on assets for both companies.
3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.
4. Which company has the more favorable ratios?
(For all requirements, round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).)
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