Ratio Analysis: Return on Assets RETURN DN ASSETS is a measure of operating performance that incorporates the profitability and efficiency. It is the ratio of net income to total assets. It calculates the average profit that a company generates with each dollar of assets. It can be caloulated by multiplying profit margin and asset turnover. ReturnonAssets=AssetsNetIncome=NetSalesNetIncomeTotalAssetsNetSales 1) For the corporations listed below, calculate the return on assets for the missing years. Record your answers in the space provided. [000's] 2) In 2022, Hal-Mart in profit for every dollar in assets. In 2021, Apple in profit for every dollar in assets. 3) Which of the two companies is more efficient at profits with 4) Did Mal-Mart's RDA get better or What was the source of the decline? 5) Did Tesla's RDA get better or worse? 6) Did United's ROA get better or worse? Ratio Analysis: Asset to Equity Ratio (equity multiplier) The ASSETS TO ERUITY ratio (or Equity Multiplier) is a measure of financial leverage and long-term solvency. It compares total assets to total equity. AssettoEquityRatio=TotalEquityTotalAssets 1) For the corporations listed below, calculate the asset equity ratio the missing years. Record your answers in the space provided. [000's] 2) In 2019, which company used the most financial 3) What were Tesla's total liabilites at 12/31/2019? 4) As of December 31, 2019 , Tesla used $1.00 in equity in debt to fund every $4.23 in assets. In 2019 Tesla relied more heavily on to finance 5) Between 2019 and 2021 Tesla's Equity increased by Between 2019 and 2021 Tesla's Liabilities increased by 6) Did Tesla finance most of this growth with debt or 7) What happened to Tesla"s Equity Multiplier? 8) What happened to Tesla's financial leverage and risk? 9) In 2021, which company used the most financial 10) Between 2019 and 2021 United's Equity decreased by Between 2019 and 2021 United's Liabilities increased 11) By 2021 what company had the highest financial 12) In 2021 which company had the second highest Equity 13) As evidenced by their Asset to Equity ratios, Apple has higher financial leverage than Tesla. Do you think Apple poses a higher financial risk? Support your answer. Go to Yahoo Finance and look at the cash flow 11) An equity muliplier greater than 2.0 means that a debt than equity to finance it assets (higher financial 9) An equity muliplier less than 2.0 means that a company debt than equity to finance it assets. (lower financial Ratio Analysis: Return on Equity RETUPN DNEQUITY is a performance measure that incorporates profitability, efficiency, and financial leverage. It is the ratio of net income to total equity. It calculates the average profit that a company generates with each dollar of equity. It can be caloulated by multiplying profit margin, asset turnover, and the asset to equity ratio. ReturnonEquity=EquityNetIncome=NetSalesNetIncomexTotalAssetsNetSalesxTotalEquityTotalAssets 1) For the corporations listed below, calculate the return on equity for the missing years. Record your answers in the space provided. 2) In 2022, Wal-Mart in profit for every dollar of shareholder In 2021, Apple generated in profit for euery dollar of shareholder 3) Which company is most efficient at generating profits with its 4) Which company is least efficient at generating profits with its 5) Quer the past three years did Wal-Mart's RDE get better or There are three driyers of a company's Profit Margin: RDE. How did each driver change and did Asset Turnover: it contribute to the overall change in RDE Equity Multiplier: 6) Quer the past three years did Tesla's RDE get better or worse? There are three drivers of a company's Profit Margin: ROE. How did each driver change and did Asset Turnover: it contribute to the overall change in RDE Equity Multiplier: 7) Quer the past three years did United's RDE get better or There are three drivers of a company"s Profit Margin: ROE. How did each driver change and did Asset Turnover: I it contribute to the overall change in ROE Equity Multiplier: Higher financial leverage can boost a firm's return on equity (ROE), but it comes at the cost of higher financial risk. In the case of Apple, the higher asset to equity ratio increased ROE, without much added risk. In the case of Tesla, a lower asset to equity ratio reduced ROE, but the lower financial risk is probably good. It reduces the likelihood of financial distress. Use Apple's 2021 profit margin and 2021 asset turnover, along with Apple's 2019 financial leverage to calculate its ROE if its A/E ratio had not increased. Would Apple's ROE have been higher or lower if leverge had remained the same? 0) Use Tesla's 2021 profit margin and 2021 asset turnover, along with Tesla's 2019 financial leverage to calculate its ROE if its A /E ratio had not decreased. Would Apple's ROE have been higher or lower if leverge had remained the same? Ratio Analysis: Return on Assets RETURN DN ASSETS is a measure of operating performance that incorporates the profitability and efficiency. It is the ratio of net income to total assets. It calculates the average profit that a company generates with each dollar of assets. It can be caloulated by multiplying profit margin and asset turnover. ReturnonAssets=AssetsNetIncome=NetSalesNetIncomeTotalAssetsNetSales 1) For the corporations listed below, calculate the return on assets for the missing years. Record your answers in the space provided. [000's] 2) In 2022, Hal-Mart in profit for every dollar in assets. In 2021, Apple in profit for every dollar in assets. 3) Which of the two companies is more efficient at profits with 4) Did Mal-Mart's RDA get better or What was the source of the decline? 5) Did Tesla's RDA get better or worse? 6) Did United's ROA get better or worse? Ratio Analysis: Asset to Equity Ratio (equity multiplier) The ASSETS TO ERUITY ratio (or Equity Multiplier) is a measure of financial leverage and long-term solvency. It compares total assets to total equity. AssettoEquityRatio=TotalEquityTotalAssets 1) For the corporations listed below, calculate the asset equity ratio the missing years. Record your answers in the space provided. [000's] 2) In 2019, which company used the most financial 3) What were Tesla's total liabilites at 12/31/2019? 4) As of December 31, 2019 , Tesla used $1.00 in equity in debt to fund every $4.23 in assets. In 2019 Tesla relied more heavily on to finance 5) Between 2019 and 2021 Tesla's Equity increased by Between 2019 and 2021 Tesla's Liabilities increased by 6) Did Tesla finance most of this growth with debt or 7) What happened to Tesla"s Equity Multiplier? 8) What happened to Tesla's financial leverage and risk? 9) In 2021, which company used the most financial 10) Between 2019 and 2021 United's Equity decreased by Between 2019 and 2021 United's Liabilities increased 11) By 2021 what company had the highest financial 12) In 2021 which company had the second highest Equity 13) As evidenced by their Asset to Equity ratios, Apple has higher financial leverage than Tesla. Do you think Apple poses a higher financial risk? Support your answer. Go to Yahoo Finance and look at the cash flow 11) An equity muliplier greater than 2.0 means that a debt than equity to finance it assets (higher financial 9) An equity muliplier less than 2.0 means that a company debt than equity to finance it assets. (lower financial Ratio Analysis: Return on Equity RETUPN DNEQUITY is a performance measure that incorporates profitability, efficiency, and financial leverage. It is the ratio of net income to total equity. It calculates the average profit that a company generates with each dollar of equity. It can be caloulated by multiplying profit margin, asset turnover, and the asset to equity ratio. ReturnonEquity=EquityNetIncome=NetSalesNetIncomexTotalAssetsNetSalesxTotalEquityTotalAssets 1) For the corporations listed below, calculate the return on equity for the missing years. Record your answers in the space provided. 2) In 2022, Wal-Mart in profit for every dollar of shareholder In 2021, Apple generated in profit for euery dollar of shareholder 3) Which company is most efficient at generating profits with its 4) Which company is least efficient at generating profits with its 5) Quer the past three years did Wal-Mart's RDE get better or There are three driyers of a company's Profit Margin: RDE. How did each driver change and did Asset Turnover: it contribute to the overall change in RDE Equity Multiplier: 6) Quer the past three years did Tesla's RDE get better or worse? There are three drivers of a company's Profit Margin: ROE. How did each driver change and did Asset Turnover: it contribute to the overall change in RDE Equity Multiplier: 7) Quer the past three years did United's RDE get better or There are three drivers of a company"s Profit Margin: ROE. How did each driver change and did Asset Turnover: I it contribute to the overall change in ROE Equity Multiplier: Higher financial leverage can boost a firm's return on equity (ROE), but it comes at the cost of higher financial risk. In the case of Apple, the higher asset to equity ratio increased ROE, without much added risk. In the case of Tesla, a lower asset to equity ratio reduced ROE, but the lower financial risk is probably good. It reduces the likelihood of financial distress. Use Apple's 2021 profit margin and 2021 asset turnover, along with Apple's 2019 financial leverage to calculate its ROE if its A/E ratio had not increased. Would Apple's ROE have been higher or lower if leverge had remained the same? 0) Use Tesla's 2021 profit margin and 2021 asset turnover, along with Tesla's 2019 financial leverage to calculate its ROE if its A /E ratio had not decreased. Would Apple's ROE have been higher or lower if leverge had remained the same