FREE Trial

Magna International Inc. is a leading global supplier of technologically advanced automotive components, systems, and modules. Selected

Question:

Magna International Inc. is a leading global supplier of technologically advanced automotive components, systems, and modules. Selected financial information (in US$ millions) follows:

image

Instructions

a. Calculate the gross profi t margin, profi t margin, and current ratio for each year.

b. Comment on whether the ratios have improved or deteriorated over the three years.

Assume you are thinking about investing in Magna International Inc. What other information would be useful in assessing these ratios?

Transcribed Image Text:

2017 2016 $36,445 31,123 2,031 10,163 8,695 2015 Sales Cost of goods sold Profit Current assets Current liabilities $38,946 33,258 2,206 11,220 9,169 $32,134 27,559 2,013 11,144 7,276

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 50% (4 reviews)

a US dollars in millions 2017 2016 2015 Gross profit margin 146 38946 33258 38946 146 36445 31123 36...View the full answer


answer-question
Answered By
tutor-profile-image
Fahmin Arakkal
Tutoring and Contributing expert question and answers to teachers and students. Primarily oversees the Heat and Mass Transfer contents presented on websites and blogs. Responsible for Creating, Editing, Updating all contents related Chemical Engineering in latex language
4.40+ 8+ Reviews 22+ Question Solved
Related Book For  answer-question
Accounting Principles Volume 1

Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

See More Books
Question Posted:
See More Questions

Related Video

The current ratio is a financial ratio that measures a company\'s ability to pay its short-term obligations with its short-term assets. It is calculated by dividing a company\'s current assets by its current liabilities. The formula for calculating the current ratio is: Current Ratio = Current Assets / Current Liabilities Current assets are assets that can be converted to cash within one year, while current liabilities are debts that are due within one year. A current ratio of 1:1 or greater is generally considered good, as it indicates that a company has enough current assets to cover its current liabilities. A current ratio of less than 1:1 may suggest that a company may have difficulty meeting its short-term obligations. It\'s important to note that the current ratio is just one of many financial ratios that can be used to assess a company\'s financial health. It should be used in conjunction with other financial ratios and qualitative factors to make informed decisions about investing or lending to a company.

Students also viewed these Business questions

Intermediate Accounting 9th Edition - ISBN: 0471353035 - Free Book