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XYZ Company has provided the following financial information for the past year. Evaluate the companys performance using the given data and appropriate financial ratios. Metric

XYZ Company has provided the following financial information for the past year. Evaluate the company’s performance using the given data and appropriate financial ratios.

Metric

Value ($)

Sales

500,000

Cost of Goods Sold

300,000

Operating Expenses

100,000

Net Income

50,000

Total Assets

400,000

Shareholders' Equity

200,000

Total Liabilities

200,000

Requirements:

  1. Calculate the Gross Profit Margin.
  2. Determine the Operating Profit Margin.
  3. Compute the Return on Assets (ROA).
  4. Calculate the Return on Equity (ROE).
  5. Evaluate the company’s financial health and performance.

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