Question
Rate of Return on Investment Commodore Entertainment recently reported sector income from operations, revenue, and invested assets as follows: Media Networks: The ABC television and
Rate of Return on Investment
Commodore Entertainment recently reported sector income from operations, revenue, and invested assets as follows:
Media Networks: The ABC television and radio network, Commodore channel, ESPN, A&E, E!, and Commodore.com
Parks and Resorts: Commodore World Resort, Commodoreland, Commodore Cruise Line, and other resort properties
Studio Entertainment: Commodore Entertainment, which releases films by Pixar Animation Studios, Marvel Studios, Commodore/Lucasfilm, and Touchstone Pictures
Consumer Products: Character merchandising, Commodore stores, books, and magazines Commodore recently reported sector income from operations, revenue, and invested assets (in millions) as follows
Income from Operations | Revenue | Invested Assets | ||||
Media Networks | $133,920 | $753,300 | $837,000 | |||
Parks and Resorts | 64,980 | 456,000 | 570,000 | |||
Studio Entertainment | 10,258 | 312,200 | 446,000 | |||
Consumer Products | 91,908 | 399,600 | 222,000 |
Use the DuPont formula to determine the rate of return on investment for the four Commodore Entertainment sectors. Round Profit Margin, ROI to one decimal place and Investment Turnover to two decimal places.
Profit Margin | Investment Turnover | ROI | |
Media Networks | % | % | |
Parks and Resorts | % | % | |
Studio Entertainment | % | % | |
Consumer Products | % | % |
b. How do the four sectors differ in their profit margin, investment turnover, and return on investment?
has the highest profit margin, while has the lowest profit margin. has the highest return on investment, while has the lowest return on investment.
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