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TUV Ltd. has provided the following financial data: Net Sales: $750,000 Net Income: $90,000 Total Assets: $600,000 Total Liabilities: $300,000 Requirements: Calculate the return on

TUV Ltd. has provided the following financial data:

  • Net Sales: $750,000
  • Net Income: $90,000
  • Total Assets: $600,000
  • Total Liabilities: $300,000

Requirements:

  1. Calculate the return on assets (ROA).
  2. Calculate the return on equity (ROE).
  3. Compute the debt ratio.
  4. Assess the financial leverage using the equity multiplier.
  5. Compare the company’s return on equity with an industry average of 10%.

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