Yahoo! Inc.* included these statements in its 2010 annual report: Required a. Compute the following for 2009

Question:

Yahoo! Inc.* included these statements in its 2010 annual report:


Required

a. Compute the following for 2009 and 2010:

1. Net profit margin

2. Total asset turnover (use year- end total assets)

3. Return on assets (use year- end total assets)

4. Operating income margin

5. Return on operating assets (use year- end operating assets)

6. Sales to fixed assets (use year- end operating assets)

7. Return on total equity (use year- end total equity)

8. Gross profit margin

b. Comment on the trends in (a).

c. 1. Prepare a horizontal common- size consolidated statement of operations for 2008– 2010. Use 2008 as the base.

2. Comment on the results in (1).


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.
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