Question
omputing and Interpreting Financial Statement Ratios Following are selected ratios of Norfolk Southern for 2018 and 2017. Return on Assets (ROA) Component 2018 2017 Profitability
omputing and Interpreting Financial Statement Ratios Following are selected ratios of Norfolk Southern for 2018 and 2017. Return on Assets (ROA) Component 2018 2017 Profitability (Net income/Sales) 23.3% 51.2% Productivity (Sales/Average assets) 0.318 0.299 a. Was the company profitable in 2018? Answer Yes b. Was the company more profitable in 2018 or 2017? Answer 2017 c. Is the change in productivity a positive or negative development? Answer Positive d. Compute the companys ROA for 2018 and for 2017. Note: Round answers to one decimal places (example: 10.4%). ROA 2018 Answer 2017 Answer e. From the information provided, which of the following best explains the change in ROA during 2018?
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