AllState Trucking Co. has the following ratios compared to its industry for 2013. Explain why the return-on-assets

Question:

AllState Trucking Co. has the following ratios compared to its industry for 2013.

Explain why the return-on-assets ratio is so much more favorable than the return-on-sales ratio compared to the industry. No numbers are necessary; a one-sentence answer is all that isrequired.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

See More Books

Question Posted: Oct 14, 2014 06:32 AM

See More Questions

The rate of return on assets ratio is computed by dividing net income and interest expense, net of tax, by average total assets. Why is the numerator net income and interest expense, net of tax,...
Acme Transportation Company has the following ratios compared to its industry for 2015. Explain, with supporting calculations, why the return-on-equity ratio is so much less favourable than the...
Global Healthcare Products has the following ratios compared to its industry for 2015. Explain, with supporting calculations, why the return-on-assets ratio is so much more favourable than the...
In Problem 10.16, we projected financial statements for Walmart Stores for Years +1 through +5. The data in Chapter 12s Exhibits 12.1612.18 include the actual amounts for 2008 and the projected...
Let E be closed and bounded in R, and suppose that for each x E there is a function fx, nonnegative, nonconstant, increasing, and C on R, such that fx(x) > 0 and fx(y) = 0 for y E. Prove that there...
The eye bolt is subjected to the cable force F which has a component Fx along the x axis, a component Fz along the z axis, and a coordinate direction angle β. Determine the magnitude of F....
Explain why departmental overhead rates might be used instead of a single plantwide overhead rate.
Tej Dhakars company wants to establish kanbans to feed a newly established work cell. The following data have been provided. How many kanbans are needed? Daily demand 250 units Production lead time...
6. Consider two G.P.'s. 2, 22, 23, and 4, 4, 4, of 60 and n terms respectively. If the 225 n geometric mean of all the 60 + n terms is (2), then k(n-k) is equal to: (a) 560 (b) 1540 (c) 1330 (d) 2600
Figure P8.31 shows a proposed foundation site, with 10 ft of sand overlying 15 ft of clay with consolidation properties shown. The clay is normally consolidated. Assume 1-D conditions. (a) Compute...
Given the financial statements for Jones Corporation and Smith Corporation shown here: a . To which one would you, as credit manager for a supplier, approve the extension of (short-term) trade...
In the management of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit?
Ellen, the owner of a baseball park, is under a duty to the entering public to provide a reasonably sufficient number of screened seats to protect those who desire such protection against the risk of...
Company A from South Africa is planning to expand into new markets in Kenya for its product. As an advisor to the CEO, please advise him/her of the potential benefits and challenges of such a move....
Provide a brief summary what was understood on the aspect of the causes or effects of segregation in city ( any kind of city within US). REFERENCE: Despite substantial gains during much of the past...
Assume y=f(1,)=(421 +2)/2 and that the output price is 16, first input price is 8 and the second input price is 3. What are the profit maximizing input demands and the what is the profit maximizing...
What is the formula for calculating a Direct Capitalization rate using the Income Approach to Value? Describe how having two components of this formula can help you determine the value of the third...
In Finance and Sustainability, what 5 things stand out to you and why? Justify all 5 things and why they are important (emphasis on sustainability).
For the duct sizes in the previous exercise, which duct section uses the least material? Data From Previous Exercise Determine the perimeter length (in mm) and aspect ratio of the following ducts: a....
Sandcastles, Inc.s management has recently been looking at a proposal to purchase a new brick molding machine. With the new machine, the company would not have to buy bricks. The estimated useful...
What makes listening active listening? Why is active listening valuable?
Discuss the benefits accruing to a company that is traded in the public securities markets.
What are the disadvantages to being public?
Louisiana Timber Company currently has 5 million shares of stock outstanding and will report earnings of $9 million in the current year. The company is considering the issuance of 1 million...
After the company issues an initial public offering and they desire to offer additional shares, one option is the seasoned equity offering. What are the differences between a convertible bond and a...
4. A stock provides a dividend yield of 5.0% paid semi- annually. The spot price of the stock is currently $500, and the risk-free rate is 7.5% with continuous compounding for all maturities. 1. What...
1. A 1000 bond issued on January 10, 2021 is paying coupons at a nominal interest rate of 7% payable semiannually. The bond is redeemed at par and matures on January 10, 2031. The nominal yield rate...

AllState Trucking Co. has the following ratios compared to its industry for 2013. Explain why the return-on-assets

Question:

AllState Trucking Industry 8% 10% Retum on sales. Return on assets 1590

Step by Step Answer:

The amount of sales or revenue generated per dollar of a...View the full answer

Foundations of Financial Management

Students also viewed these Accounting questions