17 An analyst compiles the following data for a company: FY13 FY14 FY15 ROE 19.8% 20.0% 22.0% Return on total assets 8.1% 8.0% 7.9% Total asset turnover 2.0 2.0 2.1 Based only on the information above, the most appropriate conclusion is that, over the period FY13 to FY15, the company's: A net profit margin and financial leverage have decreased. В net profit margin and financial leverage have increased. C net profit margin has decreased but its financial leverage has increased.

17 An analyst compiles the following data for a company: FY13 FY14 FY15 ROE 19.8% 20.0% 22.0% Return on total assets 8.1% 8.0% 7.9% Total asset turnover 2.0 2.0 2.1 Based only on the information above, the most appropriate conclusion is that, over the period FY13 to FY15, the company's: A net profit margin and financial leverage have decreased. В net profit margin and financial leverage have increased. C net profit margin has decreased but its financial leverage has increased.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

(Profitability Ratio)What is the Return on Investment Ratio in 2019?
Subject :- Accounting
What do these numbers say about the company?
Financial data for Joel de Paris, Incorporated, for last year follow: Joel de Paris, Incorporated Balance Sheet Assets Cash Accounts receivable Inventory Plant and equipment, net Investment in Buisson, S.A. Land (undeveloped) Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Stockholders' equity Total liabilities and stockholders' equity Joel de Paris, Incorporated Income Statement Sales Operating expenses Net operating income Interest and taxes: Interest expense Tax expense Net income $ 121,000 207,000 $4,416,000 3,665,280 750,720 328,000 $ 422,720 Beginning Balance $ 136,000 339,000 568,000 857,000 395,000 251,000 $ 2,546,000 Ending Balance $ 131,000 479,000 488,000 842,000 435,000 253,000 $ 2,628,000 $ 349,000 $ 374,000 983,000 1,189,000 983,000 1,296,000 $ 2,546,000 $ 2,628,000 The company paid dividends of $315,720 last year. The “Investment in Buisson, S.A.," on the balance sheet represents an investment in the stock of another company. The…
What is the comparison (analysis) of the Returned on Invested Capital (ROIC) of Industry Average Ratio and the Company A Ratio? THE ROIC ratios has decreased and increased. Why? Industry Average ROIC 2015: 4.30% 2016: 4.90% 2017: 3.00% 2018: 2.58% 2019: 4.02% Company A Total ROIC 2015: 3.77% 2016: 1.46% 2017: 2.90% 2018: 2.94% 2019: 2.24%
Using the information below calculate ROA and ROE. Once your calculations are complete, answer the five questions relating to your calculations. Profit Margin Asset Turnover FLR ROA is: Select one: O a. Increasing 2018 4.50% 5.50 1.40 O b. Decreasing O c. Remaining fairly flat 2015 4.70% 4.80% 5.90 6.50 1.40 1.50 2017 2016 4.70% 5.80 1.40 industry 2014 average 5.00% 4.70% 7.00 6.00 1.50 1.50
I need the answer as soon as possible
11. Briton Company has operating income of $36,000, invested assets of $180,000, and sales of $720,000. Use the DuPont formula to compute the return on investment and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment.
Which of the following is most likely true concerning the stability and trend of earnings? 1. require at leaset 5 years of historical data to be meaningful 2. are not factored in the analysis of revenues 3. depend on the trend of a dingle industry 4. are key factors when calculating cost of sales
If a firm's net profit margin is 4%, its total asset turnover is 1.8 times, and its debt ratio is 40%, its return on equity is: 15.00% None of the values in this list are correct. 12.86% 11.25% 12.00% 09.38%
An analyst gathered the following information about the company: 2021 net sales R10 000 000 2021 net profit margin 5.0% 2022 expected sales growth -15.0% 2022 expected profit margin 5.4% 2022 expected ordinary shares outstanding 120 000 The analyst's estimate of the company's 2022 earnings per share should be closest to... a. R2.26 b. R2.72 C. R3.83 d. R4.17
An analyst expects a company to have AED 20,000 in total assets at year-end and AED 12,000 in liabilities. The analyst's projection of total owners' equity should be closest to AED 2,000 AED 3,200 AED 8,000