Question
llied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions): Allied Construction 2018 2017 Sales $55,000 $45,000 Net
llied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions):
Allied Construction | 2018 | 2017 |
Sales | $55,000 | $45,000 |
Net income | 3,500 | 3,200 |
Total assets | 31,000 | 24,000 |
Axis Construction | 2018 | 2017 |
Sales | $90,000 | $77,000 |
Net income | 4,000 | 4,900 |
Total assets | 55,000 | 62,000 |
Required:
1.Calculate Allied Construction's return on assets, profit margin, and asset turnover ratio for 2018.(Do not round your intermediate calculations. Round your answers to 2 decimal places.)
2.Calculate Axis Construction's return on assets, profit margin, and asset turnover ratio for 2018.(Do not round your intermediate calculations. Round your answers to 2 decimal places.)
3-a.Which company has the better profit margin?
Allied |
Axis |
3-b.Which company has the better asset turnover?
Axis |
Allied |
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