Question: Hi i need help for this questions. He says do not calculate Return on Assets ended December 31: P13-11B The following financial information (in millions)

 Hi i need help for this questions. He says "do not

Hi i need help for this questions.

He says "do not calculate Return on Assets"

calculate Return on Assets" ended December 31: P13-11B The following financial information

ended December 31: P13-11B The following financial information (in millions) is for two major corporations for three fiscal years 2014 2013 2012 Husky Energy Inc. Profit $ 1,258 $ 1,829 $ 2,022 Shareholders' equity 20,575 20,078 19,161 Total assets 38,848 36,904 35,161 Suncor Energy Inc. Profit $ 2,699 $ 3,911 $ 2,740 Shareholders' equity 41,603 41,180 39,215 Total assets 79,671 78,315 76,401 Instructions (a) Calculate return on assets and return on equity for each company for 2014 and 2013. Comment on whether their ratios have improved or deteriorated. (b) Compare Husky's ratios with Suncor's. (c) The five-year industry average for return on equity is 14.06%. Compare the two companies' performance with the industry average. TAKING IT FURTHER Using your findings in this question to illustrate, explain why it is important to use comparisons in evaluating ratios

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!