Question: Refer to the information for Adrian Express in E125. Industry averages for the following profitability ratios are as follows: Gross profit ratio ...... 25% Return

Refer to the information for Adrian Express in E12–5. Industry averages for the following profitability ratios are as follows:
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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Requirement 1 Profitability Ratios Calculations Gross profit ratio 5200000 15200000 342 Return ... View full answer

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