General Mills Kelloggs Return on shareholders' equity (ROE) 0.402 0.247 Return on assets (ROA) 0.070 0.073 Leverage 5.783 3.362 Return on sales (ROS) (aka Profit Margin 0.091 0.129 Asset turnover 0.765 0.569 Based on the ratio analysis, which statements are true? Indicate ALL the answers that are correct. Group of answer choices Kelloggs use their assets more effectively to generate sales. Kelloggs has better overall performance. General Mills uses more liability financing relative to equity financing. General Mills does a better job controlling their expenses relative to sales. Kelloggs uses their assets more effectively to generate net income.
General Mills Kelloggs Return on shareholders' equity (ROE) 0.402 0.247 Return on assets (ROA) 0.070 0.073 Leverage 5.783 3.362 Return on sales (ROS) (aka Profit Margin 0.091 0.129 Asset turnover 0.765 0.569 Based on the ratio analysis, which statements are true? Indicate ALL the answers that are correct. Group of answer choices Kelloggs use their assets more effectively to generate sales. Kelloggs has better overall performance. General Mills uses more liability financing relative to equity financing. General Mills does a better job controlling their expenses relative to sales. Kelloggs uses their assets more effectively to generate net income.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 6CP: The average liabilities, average stockholders' equity, and average total assets are as follows: 1....
Related questions
Question
| General Mills | Kelloggs | |
| Return on shareholders' equity (ROE) | 0.402 | 0.247 |
| Return on assets (ROA) | 0.070 | 0.073 |
| Leverage | 5.783 | 3.362 |
| Return on sales (ROS) (aka Profit Margin | 0.091 | 0.129 |
| Asset turnover | 0.765 | 0.569 |
Based on the ratio analysis, which statements are true? Indicate ALL the answers that are correct.
Group of answer choices
Kelloggs use their assets more effectively to generate sales.
Kelloggs has better overall performance.
General Mills uses more liability financing relative to equity financing.
General Mills does a better job controlling their expenses relative to sales.
Kelloggs uses their assets more effectively to generate net income.
Expert Solution
Step 1: Introduction
Ratio analysis is a method used to analyze financial statements by calculating and comparing various financial ratios. Financial ratios are mathematical calculations that are used to evaluate a company's financial performance, health, and position. Ratio analysis helps investors, creditors, and other stakeholders to better understand a company's financial situation and make informed decisions.
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