Question

it doesnt say much which is why i am confused the book states.. Interpret the ratios......

it doesnt say much which is why i am confused the book states.. Interpret the ratios... If the company ratio is better than the industry enter "B". If it is worse, enter "W".

question

RETURN ON ASSETS

COMPANY 22.5%

INDUSTRY  20.8%

Question

RETURN ON EQUITY:

COMPANY  49.22%

INDUSTRY  35.0%

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1


1.

RETURN ON ASSETS

COMPANY 22.5%

INDUSTRY 20.8%

Answer: “B”

ROA = Net income / Total assets

We would prefer higher returns on assets. The company is yield 22.5% return vs 20.8% return posed by industry hence, better performance by Company vs Industry

2.

----------------------------

RETURN ON EQUITY:

COMPANY 49.22%

INDUSTRY 35.0%

Answer: “B”

ROE = Net income / Total equity

Return on equity for Company is higher than Industry. Higher ratios are almost always better than lower ratios.

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
the book states.. Interpret the ratios... If the company ratio is better than the industry enter...
the book states.. Interpret the ratios... If the company ratio is better than the industry enter "B". If it is worse, enter "W". Question DEBT RATIO: = COMPANY  54% INDUSTRY  45% Question TIMES INTEREST EARNED: = COMPANY  9.4 TIMES INDUSTRY  3.6 TIMES
Between about December 2007 and June 2009, the United States was considered to be in a...
Between about December 2007 and June 2009, the United States was considered to be in a recession. The U.S. Gross Domestic Product fell approximately 3% from the third quarter of 2008 to the third quarter of 2009. Also, during December 2007 and June 2009, the Standard and Poor’s 500 index dropped by 38% and the unemployment rate climbed from 5% to 9.5%. The macroeconomic situation affected almost all companies since higher unemployment affected personal consumption, which dropped from 10,140.3 Billion...
Passion Garments Trading LLCis a garment company, located in Muscat, which consists primarily of much smaller...
Passion Garments Trading LLCis a garment company, located in Muscat, which consists primarily of much smaller garment makers. Passion Garments Trading LLC was started 8 years ago by Ahmed and Salim, who has over 16 years of experience with a major garment manufacturer. And the partnership initially blended very well. Ahmed is extremely creative with a real talent for merchandising. Mainly as a result of his knowledge, the Passion Garments Trading LLC is known for its quality and “in” fashions....
Questions 1. Which market entry strategy is Walmart primarily using to enter foreign markets, and why...
Questions 1. Which market entry strategy is Walmart primarily using to enter foreign markets, and why has management chosen this approach? Yao Ming, Jackie Chan, and Walmart: China Embraces Big Stars and Big-Box Retailing (as cited in Daft, R. and Marcic, D. management: The new workplace, 8e) When you’re an American retailer with thousands of stores spread liberally throughout the best shopping areas of the United States, at some point the question arises: “What next?” Top brass at Walmart were...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events that took place at Enron and how the situation could have been dealt with differently to prevent further damage? THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies,...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT