2015 2014 2013 2012 2011 ROA 6% 8% 8% 7% - ROI 24% 28% 28% 21% 27% ROE 14% 16% 1
ID: 2460924 • Letter: 2
Question
2015
2014
2013
2012
2011
ROA
6%
8%
8%
7%
-
ROI
24%
28%
28%
21%
27%
ROE
14%
16%
16%
14%
27%
Gross Profit Margin
50%
14%
14%
11%
14%
Net Profit Margin
12%
14%
14%
11%
14%
Operating Income Margin
15%
18%
17%
15%
18%
Solvency ratio
17%
19%
19%
17%
20%
How do these percents affect the profitability of the company? analyze
2015
2014
2013
2012
2011
ROA
6%
8%
8%
7%
-
ROI
24%
28%
28%
21%
27%
ROE
14%
16%
16%
14%
27%
Gross Profit Margin
50%
14%
14%
11%
14%
Net Profit Margin
12%
14%
14%
11%
14%
Operating Income Margin
15%
18%
17%
15%
18%
Solvency ratio
17%
19%
19%
17%
20%
Explanation / Answer
Solution:
Return on Assets measures how profitable a company is relative to the total assets. Return on investment shows how efficiently each dollar is invested in a project in producing a profit. Return on equity measures how much profit a company generates the money shareholders have invested. Gross profit margin assess firm’s financial health by revealing the proportion of money left from revenues after considering the cost of goods sold. Net profit margin shows how much each dollar is earned by the company that is translated into profits. Operating margin demonstrates how much revenue is left after the operating costs are paid. Solvency ratio measures the company’s ability to meet the long term debts.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.