3 Computing Return on Equity and Return on Assets

The following table contains financial statement information for Walmart Inc.

$ millions	Total Assets	Net Income	Sales	Equity
2018	$263,154	$7,337	$459,296	$86,995
2017	245,426	10,848	446,185	93,443
2016	238,590	15,007	433,185	93,358

a. Compute return on equity (ROE) for the two recent years

b. Compute return on assets (ROA) for the two recent years. c. Compute profit margin (PM) for the two recent years. d. Compute asset turnover (AT) for the two recent years

Round ROE, ROA and PM to one decimal place (example: 0.2345 = 23.5%).

Round AT to two decimal places (example: 1.35).

Answer:

ROE 2018? _______________________ ROE 2017? ____________________

ROA 2018? ________________________ ROA 2017? ____________________

PM 2018? _________________________PM 2017? ______________________

AT 2018? __________________________AT 2017? _______________________

Which best explains the change in ROA during 2018?