Question: Computing and Interpreting Financial Statement Ratios Following are selected ratios of Colgate-Palmolive for 2015 and 2014. Return on Assets (ROA) Component 2015 2014 Profitability (Net

Computing and Interpreting Financial Statement Ratios Following are selected ratios of Colgate-Palmolive for 2015 and 2014.

Return on Assets (ROA) Component 2015 2014 Profitability (Net income/Sales) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.60% 12.60%

Productivity (Sales/Average assets) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.36 1.27

a. Was the company profitable in 2015? What evidence do you have of this?

b. Is the change in productivity (asset turnover) a positive development? Explain.

c. Compute the company’s ROA for 2015 (show computations).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Financial Statement Analysis Questions!

Q:

In this analysis, you will discuss the financial health of two companies (ZCL and Linamar) with the ultimate goal of recommending one of the companies to an investor. Your paper should consist of the...

Q:

Ratio Analysis for ZCL Calculate the current ratio, quick ratio, net working capital, debt-to equity ratio, times-interest earned, financial leverage, asset turnover, Receivables Turnover, Average...

Q:

I need help understanding this project... Submit the Ratio Analysis portion of the final project. For this milestone, you will be analyzing the financial performance of Starbucks using the financial...

Q:

Computing and Interpreting Financial Statement Ratios Following are selected ratios of Colgate-Palmolive for 2015 and 2014. Return on Assets(ROA) Component 2015 2014 Profitability (Net income/Sales)...

Q:

answers to a-c Computing and Interpreting Financial Statement Ratios Following are selected ratios of Colgate-Palmolive for 2015 and 2014. Return on Assets(ROA} Component 2015 2014 Profitability (Net...

Q:

Computing and Interpreting Financial Statement Ratios Following are selected ratios of Colgate-Palmolive for 2015 and 2014. Return on Assets(ROA) Component 2015 2014 Profitability (Net income/Sales)...

Q:

El - 3 7 . Computing and Interpreting Financial Statement Ratios Following are selected fiscal year ( FY ) ratios of Norfolk Southern Return on Assets ( ROA ) Component Profitability ( Net income /...

Q:

Applying the Accounting Equation and Computing Financing Proportions Following is fiscal 2018 information for three companies that report under IFRS. Required a. Apply the accounting equation to...

Q:

a. Yes or No are the two options b. 2017 or 2018 are the two options c. Positive or Negative are the two options e. the four options are The company's profitability weakened considerably. The...

Q:

Question 1 Computing and Interpreting Financial Statement Ratios Following are selected ratios of Norfolk Southern for 2018 and 2017. Return on Assets (ROA) Component 2018 2017 Profitability (Net...

Q:

The following figure shows a port address decoder interfaced to an 8086 CPU, (According to text book) Data Bun 01 02 CILSB) A2 74LS13 40 D7 Oin 06 07 Onta pu 14 What is the instruction that glows the...

Q:

How does the Chinese government limit the use of the Chinese currency, the RMB, on the global currency markets? Read the case study First Steps in the Globalization of the Yuan1 and answer the above...

Q:

Which of the following would not be an example of nonsampling risk in an attributes sampling application? Multiple Choice 0 0 : 2 8 : 5 5 Failure to perform the appropriate type of test of controls...

Q:

In a random sample of 120 families that use day care, how many pay between $6500 and $8750 annually for day care per child? Assume the annual day care cost per child is normally distributed with a...