The following numbers were calculated from the financial statements for a firm for 2012 and 2011 2012
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Question:
The following numbers were calculated from the financial statements for a firm for 2012 and 2011
2012 | 2011 | |
Return on common equity (ROCE | 15.2% | 13.3% |
Return on net operating assets (RNOA) | 11.28% | 12.75% |
Sales (millions) | $16,754 | $11,035 |
Average net operating assets (millions) | $ 6,981 | $ 4,414 |
Average net financial obligations (millions) | $ 2,225 | $ 241 |
Average common equity (millions) | $ 4,756 | $ 4,173 |
Explain to what extent the change in common equity from 2011 to 2012 is due to sales growth, net assets required to support sales, and borrowing.
Related Book For
Financial Statement Analysis and Security Valuation
ISBN: 978-0078025310
5th edition
Authors: Stephen Penman
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