Key figures for Best Buy and RadioShack follow. Required 1. Compute return on total assets for Best
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Required
1. Compute return on total assets for Best Buy and RadioShack for the two most recent years.
2. Separate the return on total assets computed in part 1 into its components for both companies and both years according to the formula in Exhibit.
3. Which company has the highest total return on assets? The highest profit margin? The highest total asset turnover? What does this comparative analysis reveal? (Assume an industry average of 3.2% for return on assets.)
Transcribed Image Text:
Best Buy RadloShack Current Year 2Years Current Year 2Years Year Prior Prior Year Prior Prior ($ milions) Net income... Net sales Total assets. $ 1,003 $ 1,407 1,377 192.4 236.8 73.4 .45,015 40,023 35,934 4,2245 4,251.7 4,777.5 15,826 ,758 3,570 2,283.5 1,989.6 2,070.0
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1 Best Buys return on total assets Current Year 1003 15826 12758 2 70 One Year Prior 1407 12758 1357...View the full answer
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