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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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