Return On Assets Knowledge Base
Return on Assets & Return on Equity? For an assignment I am studying a wine producer company that as the following ROA and ROE for 2004 and 2005. for 2004: ROA = 6.49% and ROE = 9.96% for 2005: ROA = -18.89% and ROE = -97.65% How can i explain these changes?
Where can i find low cost assets REAL low cost high return assests? I am so tired of being, broke. barely making it from payday to payday, with my phone always ringing thanks to bill collectors that i have had to juggle the bills for. I need to find a lowcost high return asset that i can invest in that will gewt me on the road to financial success. and out of debt and "well to do" living off of Residual income. Can someone point me in the right direction. PLEASE.....????
What would net income and return on assets (investment) be for the year? Database Systems is considering expansion into a new product line. Assets to support expansion will cost $500,000. It is estimated that Database can generate $1,200,000 in annual sales, with a 6 percent profit margin. What would net income and return on assets (investment) be for the year?
what are the reasons for a companies return on assets ratio to decrease? hi, im doing an assignment where i've been given a comparative balance sheet, comparative income statement, and a ratio analysis of a company. i have to talk about the liquidity, profitability, and financial stability of the company by looking at the balance sheet, income statement, and ratio analysis. one of the key ratios to find the performance of the profitability is the return on assets, and in this case it has decreased over three years. so my question is, is there any other ratio that will cause the return on assets to decrease? as in any other ration in any of the balance sheet, income statement, or ratio analysis. thanks
i need help finding net income and return on assets? Polly Esther Dress Shops, Inc., can open a new store that will do an annual sales volume of $960,000. It will turn over its assets 2.4 times per year. The profit margin on sales will be 7 percent. What would net income and return on assets (investment) be for the year?
Question about return on assets and return on equity? If a company were to have annual sales of $10,000,000, maintains a net after tax profit margin of 5% and has a sales-to-assets ratio of 4, then: 1: what is the retun on assets? 2: If its debt/equity ratio is 0.5, what is the return on equity? I want to make sure I'm getting the same answer!! Thanks.
Explain why the return-on-assets ratio is so much more favorable than the return-on-sales ratio? AllState Trucking Co. had the following ratios compared to its industry for 2007. AllState Trucking Industry Return on sales . . . . . . . . . . . . . . . 3% 8% Return on assets. . . . . . . . . . . . . . 5% 10% Explain why the return-on-assets ratio is so much more favorable than the return-on-sales ratio compared to the industry. No numbers are necessary; a one-sentence answer is all that is required. AllState Industry Trucking Return on sales . . . . 3% 8% Return on assets. . . . .5% 10% the chart is suppose to look like this.....
Receivable turnover or return on assets? Why would ratios that include one balance sheet account and one income statement account, such as receivable turnover or return on assets, be questionable it they came from quarterly or other interim financial reports?
What is the return on assets? Gateway Lodging has annual sales of $1.22 million, total debt of $380,000, total equity of $750,000, and a profit margin of 7.45 percent. What is the return on assets? Thank you so much for your help!!
what is the return on assets? Lily Cosmetics has annual sales of $500,000,000 maintains a net after tax profit margin of 5% and has a sales-to-assets ratio of 4 a. What is its return on assets? b. If its debt/equity ratio is 0.5, what is the return on equity? On part B, faculty may choose 0.5 or 1.0 for the debt/equity ratio.
is there a point in comparing a company's debt ratio to return on assets? because technically that would show how well a company is leveraging..... Debt Ratio = Liabilities / Assets Return on Assets = Operating Income / Avg. Assets so would it technically be alright for a company to have lets say a 0.8 to 1 debt ratio as long as it has a 0.2 : 1?? because the liabilities are used to finance the assets, therefore a company should have a high return on assets to be in a good position to pay back its debitors..... am i right?? please clarify for me thx in advanced!!
Is there a point in comparing a company's debt ratio to return on assets? because technically that would show how well a company is leveraging..... Debt Ratio = Liabilities / Assets Return on Assets = Operating Income / Avg. Assets so would it technically be alright for a company to have lets say a 0.8 to 1 debt ratio as long as it has a 0.2 : 1?? because the liabilities are used to finance the assets, therefore a company should have a high return on assets to be in a good position to pay back its debitors..... am i right?? please clarify for me thx in advanced!!
i need help on return on assets!!!!? Iowa Group reports net income of $36,000 for the year 2009. At the beginning of 2009, Iowa Group had $122,000 in assets. By the end of 2009, assets had grown to $172,000. What is Iowa Group's 2009 return on assets? (Round your answer to 1 decimal place. Omit the "%" sign in your response.)
accounting return on assets ratio? Which of the following transactions would be most likely to immediately increase a company's return on assets ratio? a. Paid cash on accounts payable. (Accounts payable was established in a previous year.) b. Incur expenses "on account". c. Borrowed cash from a local bank. d. Receive cash from customers for goods we sold them last month. (They are paying-off their accounts receivable to us).
compute return on assets? 15% on sales of $20,000,000; debt of $7,500,000; total assets of $22,500,000; after tax interest cost on total debt of 5%; what is the Return on Assets
Return of Assets? Assuming that Return on Operating Assets is a product of Operating Margin AND Operating Asset Turnover. Now Return on OpAsset was reduced from 16% to 14% for this year. What could have been the reason based on formulas above?
Return of Assets and Return on Equity question? Martin is the manager of a retail electrical goods firm. He is conscious of his performance for the past 11 months as he is entitled to a bonus if his net income results have improved over the twelve month period ending the end of the month to show a 10% return on assets (ROA). To make sure he is entitled to a bonus he intends to boost his sales figures by offering special credit terms to customers. He will extend the repayment period from one month to three months and he will not insist on having proof of income before granting the credit whereas, to date, he has required a person to verify their income before allowing the customer to buy on account. Martin can see no significant means to contain the expenses of running the business over the next month. Martin expects that by changing the credit terms he will increase his sales figures and consequently the net income from $3.2 million to $3.8 million from the previous year. Required: a. If the sales and net income increase as expected what impact will this have on the ROA given that assets in the previous year were $34 m and $36 m in this year? b. If the sales and net income increase as expected what impact will this have on the return on equity (ROE) given that shareholder’s funds in the previous year were $20 m and $22 m in this year?
How do i find Return on Assets in this Question? Return on Assets A fire has destroyed a large percentage of the financial records of the Inferno Company. You have the task of piecing together information in order to release a financial report. You have found the return on equity to be 20 percent. Sales were $1,750,000, the total debt ratio was 0.75, and total debt was $710,000. The return on assets (ROA) is percent. (Input answer as a percent rounded to 2 decimal places, without the percent sign.) ANY HELP IS GREATLY APPRECIATED!
I need help calculating Return on Assets percentage.? The ratio from the book is : Net Income+[Interest Expense x (1-.30)] / Average Total Assets. I've been given the following information: 2007: Cash: 39,600 Accounts Rec: 39,000 Inventory: 98,900 Operational Assets: 141,300 Other Assets: 84,500 Total Assets: 403,300 2006: Accounts Receivable: 18,300 Inventory: 91,700 Other Info: 2007 Liabilities: Long-term debt (10%): 59,300 2007 Income Statement Sales revenue (1/3 on credit): 454,000 Cost of goods sold: (245,100) Expenses (including interest and income tax): (161,900) Net income: 47,000 This isn't all the info given but I think are the variables pertinent. Let me know if anything else is needed. I've been working on this since last night and I just can't get the answer. Please help me! The parts I am having trouble with are calculating Average Total Assets and the Interest Expense.
I need help trying to solve for ROA(Return on Total Assets) Finance question.? Hello I need help solving this finance question. I don't need just the answer I need step by step of how I can get to the answer I would very much appreciate this. Here is the question: The common stock of J.C. Penney is currently selling at $8 per share, which represents a P/E ratio of 33. If J.C. Penney has 607,210 shares of common stock outstanding, a return on equity of 16 percent, and a debt ratio of 80 percent, what is its Return on Total Assets (ROA)? Please show me the steps you used to get to the answer Thanks once again!
Finding Return on Assets with this info:? I need to find ROA with this informaton given. I am so lost! Please help. ROE: 20% Sales $1,950,000 Total Debt Ratio .7 Total Debt $730,000 I know that ROA = net income divided by total assets. How do I find the net income and total assets though? Thanks!! THANK YOU SO SO SO SOOO MUCH!!!! I've been trying to figure this out for hours! Thank you! :)
How do I calcuate the return on assets and return on common stockholders's equity? I am currently working on a problem for school. I know both of these ratio equations, I am just not sure how to come up with the net income or preferred stock dividends. Net Sales $350,000 Cost of goods sold $180,000 Operating expense $51,000 Interest expense $3,000 Income tax expense $17,000 Current assets $130,000 Plant assets $400,000 Current liablities $60,000 Long-term liabilities $50,000 Common stock $360,000 Retained earnings $60,000 I know the net income is pretty much revenue minus expenses. So would the net income for this information be net sales minus the expenses (icost of goods sold, operating expense, interest expense, income tax expense)? Does the net income = $99,000. What is the amount for preferred stock dividends? Is it the same as common stock ($360,000).
Calculate the Return on Equity? The following data provides a summary of the financial position and performance of six independent firms over a one year period. Firm 1 2 3 4 5 6 Average Total 200 200250 250 300 300 Assets Average Interest- 100 160140175 100 50 bearing Debt Average Owners 100 40 110 75 200 250 Equity Rate of return On total Assets 6% 8% 8% 5% 5% 7% After tax cost Of long term 6% 6.5% 6% 6.5% 6% 7% debt Required: a. Calculate the rate of Return on Owners’ Equity (ROE) for each of the above firms, assuming that net income after interest and tax is used in the calculation of the rate of Return on Total Assets (ROA). (HINT: Consider the effect of interest when calculating ROE) b. Identify the firms in which leverage is working to the advantage of owners. c. Describe the situation for firms 3 and 4 if they increased their leverage to 90% of assets. d. Based on your results from a, b and c above, explain the conditions that exist when the effect of leverage is to increase the rate of return on owners’ equity to exceed the rate of return on assets and when the effect of increased leverage is to have a deleterious effect on ROE.
Stream Organization return on total assets? Stream Organization total assets at the end of last year were $380,000 and its net income was $32,750. What was its return on total assets? a. 6.98% b. 7.15% c. 8.62% d. 10.77% e. 10.43%
Return on Net Operating Assets of Year 1 is:? Year 1 Year 2 Net operating assets /common equity 1.37 1.53 Net operating profit margin 19% 21% Income tax rate 47% 28% Revenues/net operating assets 0.81 0.61 EBIT/revenues 38% 32%
What is the expected return on this portfolio? What is the expected return on a two-asset portfolio, with 150% of your net worth invested in A, which has a mean return of 8%, and borrow 50% of your net worth by selling short B, with a mean return of 5%. Please show the steps u took to calculate, not just the answer.
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