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Ratio Analysis The following is from the financial statements of Positive Play Sporting Goods, Inc. In millions ($US) 20X3 Sales 876.52 Net income 44.84 Total
Ratio Analysis
The following is from the financial statements of Positive Play Sporting Goods, Inc.
In millions ($US) | 20X3 |
---|---|
Sales | 876.52 |
Net income | 44.84 |
Total assets | 697.16 |
Equity | 432.91 |
- Calculate the following ratios from the financial data provided:
- Profit Margin
- Total Asset Turnover
- Return on Assets (ROA)
- Equity Multiplier (Financial Leverage)
- Return on Equity (ROE)
- Critique the performance of the company based on the outcomes from the ratios.
- What actions would you take to increase ROA and ROE in the future? Explain how they will impact shareholder value.
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