You are to prepare a report on return on assets in relationship with profit margin ratio and asset turnover of both companies: A retail and B retail.
Use tableau to calculate (a) profit margin on sales, (b) asset turn over, and (c) return on assets for each of the two companies in each year from 2012 to 2021.
Based on what you find, answer the following questions:
What is the return on assets for A retail (a) in 2012 and (b) in 2021?
1) The return on assets is a result of the profit margin and the asset turnover. Show this for A retail in 2021.
2) Does A retail’s asset turnover ratios and profit margin on sales over the ten-year period show (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year?
3) Does B retail’s asset turnover ratios and profit margin on sales over the ten-year period show (a) generally increasing, (b) roughly the same, or (c) generally decreasing from year to year?
4) As of 2021, which company reports a more favorable return on assets and is this primarily attributable to its asset turnover or profit margin?
5) Save your computer screen of the above 2) and 3) as a picture file.
6) Submit your answers for 1) through 4) by clicking “Text entry” tab and submit your picture file by clicking “file upload” tab. Please submit PC-compatible files only. (no Apple file)
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