Company XYZ is a manufacturing company. You have been provided with the following financial information for the year 2023: 

Total Assets: R5,000,000 

Total Liabilities: R2,000,000 

Shareholders' Equity: R3,000,000 

Net Sales: R4,000,000 

Cost of Goods Sold (COGS): R2,500,000 

Operating Expenses: R800,000 

Net Income: R600,000 

Dividends Declared: R200,000

Required:

Calculate and analyze the following financial ratios, providing both the calculation and an explanation of what each ratio measures. In addition, provide insights into Company XYZ's financial performance based on your calculations.

· Debt-to-Equity Ratio.

· Gross Profit Margin.

· Operating Profit Margin.

· Net Profit Margin.

· Return on Assets (ROA).

· Return on Equity (ROE).

Answer rating: 100% (QA)

I DebttoEquity Ratio The DebttoEquity Ratio measures the proportion of a companys financing that comes from debt compared to equity It is calculated by dividing Total Liabilities by Shareholders Equit... View the full answer