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Use the data provided below to compare financial performance for the two companies (amounts in millions). Thiokol $ 889.5 Sales Wyman-Gordon $ 499.6 $ 25.2
Use the data provided below to compare financial performance for the two companies (amounts in millions). Thiokol $ 889.5 Sales Wyman-Gordon $ 499.6 $ 25.2 Net income $ 51.4 Total assets $ 818.3 $ 375.9 Shareholders' equity $ 447.9 $ 109.9 Using DuPont Analysis we see that, Thiokol Coip.: Return on equity = Net income -------------- Sales X Sales --------------- Total assets X Total assets ------- Shareholders' equity Net margin X X Asset turnover (asset multiplier) Financial leverage. (debt multiplier) Return on equity = Wyman-Gordon, Inc.: Return on equity = Net income Sales Total assets ---- X ---- ------ x ------ Sales Total assets Shareholders' equity Net margin X X Asset turnover (asset multiplier) Financial leverage. (debt multiplier) Return on equity = - X - X
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