Zoogle has the following selected data ($ in millions): Net sales ............ $37,905 Net income ........... 9,737

Question:

Zoogle has the following selected data ($ in millions):
Net sales ............ $37,905
Net income ........... 9,737
Operating cash flows ....... 14,565
Total assets, beginning ..... 57,851
Total assets, ending ....... 72,574

Required:
1. Calculate the return on assets.
2. Calculate the cash return on assets.
3. Calculate the cash flow to sales ratio and the ratio. Is Zoogle’s business strategy closer to Apple’s or to Dell’s?

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.