Question

1 201 99 10646 2125 2365 2867 15 1 88 Net Sales COGS Net Income Accounts Receivable Inventory Current Assets Fixed Assets Tot1. What company has the highest gross margin? 2. What company has the highest ROA? 3. What company has the highest ROE? 4. Wh

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Answer #1

1. Gross Margin = (Net Sales - COGS) / Sales x 100
1 = (10646-2125)/10646 x 100 = 80.04%
2 = (3393-3746)/3393 x 100 = -10.40%
3 = (201-99)/201 x 100 = 50.75%
Company 1 has highest gross margin

2. ROA = Net Income / Total Assets x 100
1 = 2365/12338 x 100 = 19.17%
2 = 24/1480 x 100 = 1.62%
3 = 11/102 x 100 = 10.78%
Company 1 has highest ROA

3. ROE = Net Income / Total Equity x 100
1 = 2365/9543 x 100 = 24.78%
2 = 24/812 x 100 = 2.96%
3 = 11/75 x 100 = 14.67%
Company 1 has highest ROE

4. EPS = Net Income / Common Stock outstanding
1 = 2365/1993 = $1.19
2 = 24/54 = $0.44
3 = 11/17 = $0.65
Company 1 has highest EPS

As per HOMEWORKLIB RULES we are supposed to answer 4 sub parts, i have done that, so kindly post other parts separately

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