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You are given the following financial data for XYZ company Total Assets $ 6,000,000 Total Liabilities $ 1,200,000 Net Profit Margin 15 % Total Asset

You are given the following financial data for XYZ company

Total Assets $ 6,000,000

Total Liabilities $ 1,200,000

Net Profit Margin 15 %

Total Asset Turnover 1.2 times

You are also given the following industry averages:

Total asset turnover 2 times

Net Profit Margin 9 %

Debt ratio 60%

  1. Compute and complete the following ratios in the table. Show your calculations

XYZ Company

In Industry Average

R Return on Assets (ROA)

Fi Financial Leverage Multiplier

R Return on Equity (ROE)

(2) Evaluate the companys leverage and profitability, and compare them with the industry average.

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