Compute a recent five-year average of the following ratios for three companies of your choice (attempt to

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Compute a recent five-year average of the following ratios for three companies of your choice (attempt to select diverse firms):
a. Retention rate
b. Net profit margin
c. Equity turnover
d. Total asset turnover
e. Total assets/equity Based on these ratios, explain which firm should have the highest growth rate of earnings.

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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Cornerstones of Financial and Managerial Accounting

ISBN: 978-1111879044

2nd edition

Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen

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