Question

Ladders, Inc. has a net profit margin of 5.1 % on sales of $ 50.2 million. It has book value of equity of $ 39.9 million and total book liabilities of $ 30.7 million. What is​ Ladders' ROE?​ ROA? Note: Assume the value of Interest Expense is equal to zero.

Answer 1

Ref	Particulars	Amount
a	Sales	50.20
b	Net profit margin	5.10%
c= a*b	Net profit	2.56
d	Equity	39.90
e= c/d	ROE	6.42%
f	Equity	39.90
g	Liabilities	30.7
h= f+g	Total assets	70.60
i= c/h	ROA	3.63%