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Profitability ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 3 1 , 2 0 Y 7 ,
Profitability ratios
The following selected data were taken from the financial statements of Vidahill Inc. for December YY and Y:
A measure of the profitability of assets, without regard to the equity of creditors and stockholders in the assets.
Return on total assets
Return on stockholders' equity
Return on common stockholders' equity
b The profitability ratios indicate that the company's profitability has
Z Since the return on assets is
the return on stockholders' equity in both years, there must be
: leverage from the use of debt.
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