Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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. | ||||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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