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Requirement 4. Use a DuPont Analysis to calculate the rate of return on average total assets (ROA) for 2016 through 2018. Begin by selecting the
Requirement 4. Use a DuPont Analysis to calculate the rate of return on average total assets (ROA) for 2016 through 2018. Begin by selecting the ROA formula using the DuPont analysis and then enter the amounts to calculate the ratio. (Enter percentages rounded to one-tenth percent, X.X%. Enter other component ratios as decimals to three places, .XXX.) Rate of return on sales Asset turnover ROA 2016 4.3 % X 2.067 8.9 % 2017 6.4 % 1.988 = 12.7 % 2018 6.2 % 1.833 11.4 % Requirement 5. How does Amuse Shipping's return on net sales for 2018 compare with previous years? How does it compare with that of the industry? In the shipping industry, rates above 9% are considered good, and rates above 11% are outstanding. Amuse Shipping's rate of return on net sales for 2018 compares unfavorably with the industry rate of 9%. It's 2018 rate of return on net sales has deteriorated from 2017 and improved from 2016. Requirement 6. Evaluate the company's ROA for 2018, compared with previous years and against an 18% benchmark for the industry. with the 18% benchmark for the industry. Amuse Shipping's return on assets (ROA) for 2018 compares favorably It's 2018 ROA has improved from 2017 and deteriorated from 2016
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