Question

Share the ROA and PE ratio for a company you are familiar with. What do these...

Share the ROA and PE ratio for a company you are familiar with. What do these metrics tell you about the financial health of the company?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Return on Assets of Apple for the fiscal year 2019 = 16.32

PE ratio of Apple as on 22nd June 2020 = 28.15

Return on Assets gives us an idea of how effective the company is in converting the money it invests in its assets into net income. The higher the ROA the better it is for the company because it shows that the company is earning more on making fewer investments.

P/E ratio shows what the investors are ready to pay today on per dollar of earning. High P/E ratio is not necessarily a better investment than one with a lower P/E ratio because having a higher ratio means that the stock is overvalued.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
XI The PE Ratio is Share Price / Fully Diluted Shares Earnings per Share; PE Ratio...
XI The PE Ratio is Share Price / Fully Diluted Shares Earnings per Share; PE Ratio is also Equity Value / Net Income. X-File Corp has Sales of $200M, EBITDA of $35M, Depreciation and Amortization of $10M, Net Income of $25M, Equity Value of $418M, a Share Price of $35, and there are 5M Fully Diluted Shares, and $2.10 Fully EPS. 1. Compute PE Ratio based on share price. 2. Compute PE Ratio based on Equity Value. 3. Compute PE...
The price earnings (PE) ratio is reportted for each company. Discuss what this measure might imply...
The price earnings (PE) ratio is reportted for each company. Discuss what this measure might imply about the growth prospects for each firm. PE Ratio 2020/10/15 GMG 27.16 CHC 19.07 DXS 15.30 MGR 16.15 SGP 14.65
What going to happen with ROA and ROE if a company wants to do restructure of...
What going to happen with ROA and ROE if a company wants to do restructure of capital like make a bigger d/e ratio? Why? By which details?
Share the promotional strategy used by a nonprofit organization that you are familiar with. Do not...
Share the promotional strategy used by a nonprofit organization that you are familiar with. Do not use an example from the text or from other classmates' posts.
You have evaluated the ROA for a company, and the ROE. The ROA is 6%, and...
You have evaluated the ROA for a company, and the ROE. The ROA is 6%, and the ROE is 15%. The industry average for the debt ratio is .5. How does the Company’s use of debt compare to the industry average?
Kreeman's Inc. has earnings per share of $12. If the industry average PE ratio is 20,...
Kreeman's Inc. has earnings per share of $12. If the industry average PE ratio is 20, what is the price of Kreeman's stock? Please show work
The Blooming Flower Co. has earnings of $2.10 per share. The benchmark PE for the company...
The Blooming Flower Co. has earnings of $2.10 per share. The benchmark PE for the company from a comparables analysis is 10. What stock price would you consider appropriate? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Stock price           $   What if the benchmark PE were 13? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Stock price           $
What is the difference between the enterprise value to EBITDA ratio and the PE ratio
What is the difference between the enterprise value to EBITDA ratio and the PE ratio
Now that you are familiar with the transcription world, do you think this is a career...
Now that you are familiar with the transcription world, do you think this is a career path you would be interested in? What is challenging about working as a transcriptionist? What would be rewarding?
what types of companies have a low pe ratio and a high market to book ratio?
what types of companies have a low pe ratio and a high market to book ratio?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT