Question: Computing, Analyzing, and Interpreting Return on Equity and Return on Assets Following are summary financial statement data for Logitech International for 2016 through 2018. $
Computing, Analyzing, and Interpreting Return on Equity and Return on Assets
Following are summary financial statement data for Logitech International for 2016 through 2018.
| $ thousands | 2018 | 2017 | 2016 |
|---|---|---|---|
| Sales | $2,361,514 | $2,043,713 | $1,856,652 |
| Net income | 187,688 | 185,288 | 107,385 |
| Total assets | 1,655,999 | 1,423,743 | 1,257,940 |
| Equity | 966,512 | 787,622 | 699,152 |
a. Compute the return on assets (ROA) for 2018 and 2017. Round answers to one decimal place (ex: 0.2345 = 23.5%).
| 2018 | 2017 |
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b. Compute the profit margin (PM) for 2018 and 2017. Round answers to one decimal place (ex: 0.2345 = 23.5%).
| 2018 | 2017 |
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c. Compute the asset turnover (AT) for 2018 and 2017. Round answers to two decimal places.
| 2018 | 2017 |
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d. Logitech repurchased common shares in 2018 at a cost of $30 million. Did this repurchase increase or decrease the companys ROE?
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