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-   -   Calculate Profitability Ratios (https://www.askmehelpdesk.com/showthread.php?t=388075)

  • Aug 18, 2009, 08:23 AM
    adesso
    Calculate Profitability Ratios
    Selected data from the company are presented below:

    Total Assets: $1,500,000
    Average Assets: 1,700,000
    Net Income: 250,000
    Net Sales: 1,400,000
    Average common stockholders' equity: 1,000,000
    Net cash provided by operating activities: 275,000
    Shares of common stock outstanding: 10,000


    Calculate the profitability ratios that can be computed from the above information.
  • Aug 18, 2009, 06:02 PM
    morgaine300

    Please see the guidelines for posting homework questions:
    Ask Me Help Desk - Announcements in Forum : Homework Help

    Also you need to realize that what your book/instructor may have presented as a set of profitability ratios may not be all the ones that could exist. You'd have to look up which ones have been covered. And some equations have slight variances depending on the source. Helps if you include the equation you've been given alone with any work.

    If you're allowed to use any set you want, there's a whole slew of analysis ratios here:
    http://www.investopedia.com/university/ratios/

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