Question
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
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started