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Profitability Ratios Company A Market Comparison Year 2014 2015 2016 Profit margin on sales=Net income/net sales Company A Company B Company C Ratio 1.4 1.7
Profitability Ratios | ||||||||
Company A | Market Comparison | |||||||
Year | 2014 | 2015 | 2016 | Profit margin on sales=Net income/net sales | Company A | Company B | Company C | |
Ratio | 1.4 | 1.7 | 1.69 | 1.69 | 0.31 | 0.21 | ||
Year | 2014 | 2015 | 2016 | Return on Assets (ROA)=Net income /Average total sales | Company A | Company B | Company C | |
Ratio | 3.96 | 4.93 | 6 | 6 | 4.77 | 6.96 | ||
Year | 2014 | 2015 | 2016 | Return on Equity (ROE)=net Sales/Average shareholders'' equity | Company A | Company B | Company C | |
Ratio | 4.94 | 6.3 | 7.73 | 7.73 | 11.72 | 28.01 | ||
Year | 2014 | 2015 | 2016 | Equity multiplier=Average total assets/average total equity | Company A | Company B | Company C | |
Ratio | 1.2 | 1.23 | 1.23 | 1.23 | 2.39 | 5.2 | ||
Analyze ratios and explain profitability for company A. | ||||||||
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