Swift Company has three divisions and expects each division to earn a 16% target rate of return. The company had the following results last year: E: (Click the icon to view the results.) Division 3 reported the following data: (Click the icon to view the Division 3 data.) Read the requirements. Requirement 1. Compute Division 3's profit margin ratio, asset turnover ratio, and ROI. Round your results to three decimal places. Interpret the results in relation to the other two divisions. Begin by computing Division 3's profit margin ratio. (Enter the profit margin ratio as a percentage rounded to one decimal place, XX%.) Profit margin ratio Now compute Division 3's asset turnover ratio. (Enter the asset turnover ratio in decimal form to three decimal places, X.XXX.) Asset turnover ratio Next, compute Division 3's ROI. (Enter any previously calculated amounts in the same format as you previously entered them. Enter the ROI as a percentage rounded to one decimal place, X.X%.) ROL % % Division 3 V meeting top management's expectations. Its ROI is V than the 16% target rate of return. Division 3's profit margin ratio is than the other two divisions. Additionally, the asset turnover ratio is than Division 1's and than Division 2's. This means that Division 3 generating sales from its average total assets as efficiently as Division 1 and Division 3 is efficient than Division 2 Division 3 meeting top management's expectations. Its ROI is than the 16% target rate of return. Division 3's profit margin ratio is than the other two divisions. Additionally, the asset turnover ratio is than Division 1's and than Division 2's. This means that Division 3 generating sales from its average total assets as efficiently as Division 1 and Division 3 is efficient than Division 2 Division management Requirement 2. Compute and interpret Division 3's RI. First, compute Division 3's RI. (Use parentheses or a minus sign for a negative RI.) - RI -( The VRI confirms the ROI results: The division V meeting management's target rate of return. Requirement 3. What can you conclude based on the financial performance KPIs? Both investment center financial performance KPIs expectations are the division is division's manager may currently be implementing new initiatives to point to the same conclusion: Division 3 meeting financial expectations. Top management's and stakeholders' Recall, however, that financial performance measures tend to be lag indicatorsmeasuring the results of decisions made in the past. The the division's future profitability. Lead indicators should be used to project whether such initiatives are pointing the division in the right direction. Divi Swift Company has three divisions and expects each division to earn a 16% target rate of return. The company had the following results last year: E: (Click the icon to view the results.) Requirements Real - X Data table bf return. Division ales from its ave 1. Compute Division 3's profit margin ratio, asset turnover ratio, and ROI. Round your results to three decimal places. Interpret the results in relation to the other two divisions. 2. Compute and interpret Division 3's RI. 3. What can you conclude based on the financial performance KPIs? D Asset turnover ratio ROI Profit margin ratio 7.2% R Division 1 2.737 19.7% F Division 2 11.7% 1.584 18.5% Print Done Data table Print Done $ 1,450,000 Operating income Average total assets Net sales revenue 16,100,000 26,500,000 Both investment center financial performance KPIs expectations are v the division is division's manager may currently be implementing new initiatives to v meeting financial expectations. Top management's and stakeholders' hd to be lag indicatorsmeasuring the results of decisions made in the past. The d to project whether such initiatives are pointing the division in the right direction. Print Done Swift Company has three divisions and expects each division to earn a 16% target rate of return. The company had the following results last year: E: (Click the icon to view the results.) Division 3 reported the following data: (Click the icon to view the Division 3 data.) Read the requirements. Requirement 1. Compute Division 3's profit margin ratio, asset turnover ratio, and ROI. Round your results to three decimal places. Interpret the results in relation to the other two divisions. Begin by computing Division 3's profit margin ratio. (Enter the profit margin ratio as a percentage rounded to one decimal place, XX%.) Profit margin ratio Now compute Division 3's asset turnover ratio. (Enter the asset turnover ratio in decimal form to three decimal places, X.XXX.) Asset turnover ratio Next, compute Division 3's ROI. (Enter any previously calculated amounts in the same format as you previously entered them. Enter the ROI as a percentage rounded to one decimal place, X.X%.) ROL % % Division 3 V meeting top management's expectations. Its ROI is V than the 16% target rate of return. Division 3's profit margin ratio is than the other two divisions. Additionally, the asset turnover ratio is than Division 1's and than Division 2's. This means that Division 3 generating sales from its average total assets as efficiently as Division 1 and Division 3 is efficient than Division 2 Division 3 meeting top management's expectations. Its ROI is than the 16% target rate of return. Division 3's profit margin ratio is than the other two divisions. Additionally, the asset turnover ratio is than Division 1's and than Division 2's. This means that Division 3 generating sales from its average total assets as efficiently as Division 1 and Division 3 is efficient than Division 2 Division management Requirement 2. Compute and interpret Division 3's RI. First, compute Division 3's RI. (Use parentheses or a minus sign for a negative RI.) - RI -( The VRI confirms the ROI results: The division V meeting management's target rate of return. Requirement 3. What can you conclude based on the financial performance KPIs? Both investment center financial performance KPIs expectations are the division is division's manager may currently be implementing new initiatives to point to the same conclusion: Division 3 meeting financial expectations. Top management's and stakeholders' Recall, however, that financial performance measures tend to be lag indicatorsmeasuring the results of decisions made in the past. The the division's future profitability. Lead indicators should be used to project whether such initiatives are pointing the division in the right direction. Divi Swift Company has three divisions and expects each division to earn a 16% target rate of return. The company had the following results last year: E: (Click the icon to view the results.) Requirements Real - X Data table bf return. Division ales from its ave 1. Compute Division 3's profit margin ratio, asset turnover ratio, and ROI. Round your results to three decimal places. Interpret the results in relation to the other two divisions. 2. Compute and interpret Division 3's RI. 3. What can you conclude based on the financial performance KPIs? D Asset turnover ratio ROI Profit margin ratio 7.2% R Division 1 2.737 19.7% F Division 2 11.7% 1.584 18.5% Print Done Data table Print Done $ 1,450,000 Operating income Average total assets Net sales revenue 16,100,000 26,500,000 Both investment center financial performance KPIs expectations are v the division is division's manager may currently be implementing new initiatives to v meeting financial expectations. Top management's and stakeholders' hd to be lag indicatorsmeasuring the results of decisions made in the past. The d to project whether such initiatives are pointing the division in the right direction. Print Done