URL assignment #5 profitability analysis (5 points)

(a)Compute the rate earned on total assets ratio for each of thefive URL companies. It measures the profitability of total assets, without considering how the assets are financed. It is computed by dividing the net income plus interest expense for the year by average total assets for the year. (See page 712 for an illustration.) (for simplicity just use net income i.e. ignore the addition of interest expense to net income for the year and dont average the total assets instead just use total assets at the end of the year, 2016.)

(b)Rank the five URL companies according to profitability.

URLs

Starbucks http://s21.q4cdn.com/369030626/files/doc_financials/2016/Annual/FY16-Annual-Report-on-Form-10-K.pdf

Boeing Corporation http://s2.q4cdn.com/661678649/files/doc_financials/annual/2016/2016-Annual-Report.pdf

Walmart Corporationhttp://s2.q4cdn.com/056532643/files/doc_financials/2016/annual/2016-Annual-Report-PDF.pdf

Wells Fargo Bank

https://www08.wellsfargomedia.com/assets/pdf/about/investor-relations/annual-reports/2016-annual-report.pdf

Microsoft Corporation

http://www.microsoft.com/investor/reports/ar16/ind