The following is selected data for Patina Industries: Requirements 1. Calculate the return on assets (ROA) and

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The following is selected data for Patina Industries:

2016 2015 2014 Sales. $1,245,000 130,000 193,000 796,000 $1,147,000 114,000 153,000 736,0000 889,000 $1,410,000 112,000

Requirements
1. Calculate the return on assets (ROA) and the fixed asset turnover ratio for Patina Industries for 2015 and 2016. Round your answers to two decimal places.
2. Have the ratios improved or deteriorated? Comment on the trend in both ratios?

Asset Turnover
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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Financial Accounting

ISBN: 978-0134436111

4th edition

Authors: Robert Kemp, Jeffrey Waybright

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