Question: Computing Return on Equity and Return on Assets The following table contains financial statement information for OMV Group, which is a petrochemical company headquartered in
Computing Return on Equity and Return on Assets
The following table contains financial statement information for OMV Group, which is a petrochemical company headquartered in Vienna.
Required
a What was OMV Group's return on assets ROA for and
b Determine its profit margin PM for each of the three years
c Determine its asset turnover AT for each of the three years
Notes:
Round ROA and PM answers to one decimal place ex:
Round AT answers to two decimal places ex:
Use negative signs with answers, when appropriate.
d What factor is mainly responsible for the change in OMV's ROA from to Is it profit margin or asset turnover or both?
e What factor is mainly responsible for the change in OMV's ROA from to Is it profit margin or asset turnover or both?
f Determine OMV Group's return on equity ROE for each of the three years
Notes:
Round ROE answers to one decimal place ex:
Use negative signs with answers, when appropriate.
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