look at the income statement, the balance sheet, the shareholder's equity and the statement of cash flows for the company of Walmart and the company of Amazon. figure out and compute these things for the year of 2017:
profit margin
asset turnover
return on assets
return on common stockholder's equity.
How would you evaluate each company's profitability
Year 2017 (amount in millions) | ||||||
Company | Formula | Walmart | Walmart | Amazon | Amazon | |
Profit Margin | NP/T.Turnover | 14293/485873 | 0.029 | 3033/177866 | 0.017 | |
Assets Turnover | T.Turnover/T.Assets | 485873/198825 | 2.44 | 177866/131310 | 1.35 | |
Return on assets | NP/T.Assets | 14293/198825 | 0.07 | 3033/131310 | 0.02 | |
Return on Common shareholders Equity | NP/Shareholder's Equity | 14293/80822 | 0.18 | 3033/27709 | 0.11 | |
Profitability evaluation: | ||||||
Year 2016 | ||||||
Profit Margin | NP/T.Turnover | 15080/482130 | 0.031 | 2371/135987 | 0.017 | |
Profitibility from 2016 to 2017 | DECREASED | STAGNENT |
look at the income statement, the balance sheet, the shareholder's equity and the statement of cash...
compute for the years of 2017 for the companies of Walmart and Amazon separately what their profit margin is, what their asset turnover is, what the return on assets is, and what the return on common stockholder's equity is. How would you evaluate each of the two companies profitability
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bottom.
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