Question

Using the internet - Choose the most recent annual report of a company of your choice that operates in multiple geographical locations. Using financial information for the most recent years available in the annual report, which of the company's geographic areas had the highest ROI? (You will find business segment information in the notes to the financial statements, including geographic segments.) Is ROI trending upward, downward, of flat? (Use financial data to support your information) Use end-of-year "identifiable assets" to measure investment, "operating profits" to measure income, and "net sales" to measure sales. Be sure to discuss the company business segment information from the annual report in your memorandum.

I can pick any company. I think IBM had the most geographic segment Info that I could find, but still not everything it seems I'm needing.

Thank you.

Answer 1

Answer:

Hi, i will provide you the guidance you needed.

I think you should take General Electric annual report instead of IBM because General Electric report is more understandable.

For ROI (Return on investment ) the following formula is used:

Net Profit or Operating profit / Total investment * 100

if you open the annual report for year 2018 of GE, you will find geographically bifurcated revenue and total assets on page number 51 and 52.

for calculating operating profit you can apply common operating profit rate to each segment revenue, because operating profit for each geographic area is not provided in notes to accounts.

Hope the above is the enough guidance you needed.

Thanks Cheer !!!