Given the 4 ratios, and comparing the two years, how would you evaluate the company's profitability and
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Question:
Given the 4 ratios, and comparing the two years, how would you evaluate the company's profitability and why?Year 2018 2019
Net Income $2,465 $2,300
Revenue $21,965 $22,428
Net profit Margin 11.22% 10.26%
Year 2018 2019
Revenue $21,965 $22,428
Net Assets $26,243 $25,895
Asset Turnover 83.70% 86.61%
Year 2018 2019
Net Income $2,465 $2,300
Net Assets $26,243 $25,895
Return on Assets 9.39% 8.88%
Year 2018 2019
Net Income $2,465 $2,300
Common Equity $9,853 $9,832
Return on Equity 25.02% 23.39%
Expert Answer:
To evaluate the companys profitability based on the provided ratios and comparing the two years 2018 and 2019 we can analyze the trends and changes in ... View the full answer
Related Book For 
Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell
Posted Date:
