Question
llied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions): Allied Construction 2024 2023 Sales $57,000 $46,000 Net
llied Construction and Axis Construction reported the following information in their annual financial statements ($ in millions):
| Allied Construction | 2024 | 2023 |
|---|---|---|
| Sales | $57,000 | $46,000 |
| Net income | 3,900 | 3,600 |
| Total assets | 28,000 | 24,000 |
| Axis Construction | 2024 | 2023 |
|---|---|---|
| Sales | $89,000 | $72,000 |
| Net income | 3,500 | 4,700 |
| Total assets | 51,000 | 63,000 |
Required:
1. Calculate Allied Construction's return on assets, profit margin, and asset turnover ratio for 2024.
2. Calculate Axis Construction's return on assets, profit margin, and asset turnover ratio for 2024.
3-a. Which company has the better profit margin?
3-b. Which company has the better asset turnover?
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley
11th Edition
0131867121, 978-0131867123
