During 2007 Federal Express reported the following information (in millions): net sales of $35,214 and net income

Question:

During 2007 Federal Express reported the following information (in millions): net sales of $35,214 and net income of $2,016. Its balance sheet also showed total assets at the beginning of the year of $22,690 and total assets at the end of the year of $24,000.

Instructions

Calculate the

(a) Asset turnover ratio and

(b) Return on assets ratio.

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...