Calculating Profitability Ratios Wims, Inc., has sales of $15.2 million, total assets of $9.8 million, and total debt of $3.7 million. If the profit margin is 6 percent, what is the net income? What is the ROA? What is the ROE?
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- Calculating Profitability Ratios Wims, Inc., has sales of $15.2 million, total assets of $9.8 million, and total debt of $3.7 million. If the profit margin is 6 percent, what is the net income? What is the ROA? What is the ROE?
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- 5. Profitability ratios Profitability ratios help in the analysis of the combined impact of liquidity ratios, asset management ratios, and debt management ratios on the operating performance of a firm. Your boss has asked you to calculate the profitability ratios of Diusitech Inc. and make comments on its second-year performance as compared with its first-year performance. The following shows Diusitech Inc.'s income statement for the last two years. The company had assets of $4,700 million in the first year and $7,518 million in the second year. Common equity was equal to $2,500 million in the first year, and the company distributed 100% of its earnings out as dividends during the first and the second years. In addition, the firm did not issue new stock during either year. Diusitech Inc. Income Statement For the Year Ending on December 31 (Millions of dollars) Year 2 Year 1 2,540 2,000 1,610 1,495 127 80 1,737 803 80 723 181 542 Net Sales Operating costs except depreciation and…5. Anderson Inc. has sales of $17.6 million, total assets of $13.5 million, and total debt of $6.2 million. If profit margin is 5.2%, what is net income? What is ROA? What is ROE?Suppose we have the following information: Sales $112,851 Assets $131,468 Net profit margin (NPM) = 17 percent Debt Ratio 55 percent What is the return on equity (ROE)? =
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- Your answer is partially correct. The Blossom Timber Company has the following ratios: Net sales/Total assets = 2.80, ROA = 16.10 %, ROE = 25.76% What are Blossom's profit margin and debt ratios? (Round answers to 2 decimal places, e.g. 12.55 or 12.55 %.) Profit margin %? Debt ratio?The Wilson Corporation has the following relationships: Sales/Total assets 2.0 Return on assets (ROA) 4.0% Return on equity (ROE) 6.0% What is Wilson's profit margin and debt ratio? (Ctrl) num k 8 # $ 9 7 8 3 4 5 6 5 6 Y E R 2.Assume you are given the following relationships for the Clayton Corporation: Sales/total assets 1.5 Return on assets (ROA) 3% Return on equity (ROE) 5% Calculate Clayton's profit margin and debt ratio.