The following amounts (in millions) were reported in the SnarkShark income statement and balance sheet. 1. Compute
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1. Compute the asset turnover and net profit margin ratios for 2014 and 2013.
2. Would analysts be more likely to increase or decrease their estimates of share value on the basis of these changes? Explain what the changes in these two ratios mean.
3. Compute the debt-to-assets ratio for 2014 and 2013.
4. Would analysts be more likely to increase or decrease their estimates of SnarkShark's ability to repay lenders on the basis of this change? Explain by interpreting what the change in this ratio means?
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Related Book For 
Fundamentals of Financial Accounting
ISBN: 978-1259103292
4th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
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