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Compute and Interpret ROA, Profit Margin, and Asset Turnover of Competitors Selected balance sheet and income statement infor
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Answer #1
a) ROA
Return On Assets = Net Income / Average Assets
Mc Donalds
= $4758/35454
=13.4 %
Yuml Brands
= $1021/8520
=12.0%
b)
PM * AT = ROA
Mc Donalds 17.3% 0.774 13.4%
Yuml Brands 7.7% 1.559 12.0%
Formula:
PM = Net Profit / Sales
AT = Sales / Average Asstes
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