Refer to the information for Adrian Express in E125. Industry averages for the following profitability ratios are
Question:
Gross profit ratio ...... 25%
Return on assets ........ 15%
Profit margin ....... 10%
Asset turnover ....... 1.5 times
Return on equity ....... 25%
Required:
1. Calculate the five profitability ratios listed above for Adrian Express.
2. Do you think the company is more profitable or less profitable than the industry average? Explain your answer.
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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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