Question: Financial Analysis Assignment-Stude... yout References Mailings Review View Help Fine Aa-Ao ALT AaBbcc AaBbcc AaBbcc AaBbCel AaBbCcD 1 Normal 1 No Spac... Heading 1
Financial Analysis Assignment-Stude... " yout References Mailings Review View Help Fine Aa-Ao ALT AaBbcc AaBbcc AaBbcc AaBbCel AaBbCcD 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 3 Go Rep Sele O-A- Paragraph Styles Editir Q4 a. For cach company listed below, compute Return on Sales (ROS), which reveals the portion of each Tevere dollar that results in profit ROS = Net income / Sales revenue (S in millions) Year Ended Revenue Net Income ROS Microsoft (MSFT) 6/30/2008 $ 60,420 $ 17,681 29.26% Wal-Mart Stores (WMT) 1/31/2009 $ 405,607 $ 13,400 3.30% Ford Motor Company (F) 12/31/2008 $ 146,277 $ (14,672) 10.30% b Wal-Mart Stores has greater revenue than Microsoft, but Microsoft has a higher ROS ratio than Wal-Mart. The ROS ratio for Microsoft indicates 29.26% of every reverte dollar resulted in profit net income, but for Wal-Mart Stores only 3.3% of every revenue dollar resulted in profit. Ford Motor Company reports a negative ROS, indicating net income is negative C For Wal-Mart, 96.7 cents of each revenue dollar went to pay for all of the costs of running the business, leaving cents of each revenue dollar for profit. The corporation with the strongest ROS ratio is (MSFT / WMT/F). How can a company increase its ROS ratio? d e. Does a low ROS ratio indicate a weak corporation? (Yes/No) Why? Q5 a. For each company listed below, compute Asset Tumover, which reveals how efficiently assets are used to generate revenue Asset Tumover = Sales Revenue / Total Assets (Sin millions Year Ended Revenue Total Assets Asset Turnover Focus a **
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