Question: In the Chapter 3 Applying Tableau you compared two companies liquidity In this case you continue in your role as an analyst conducting research into

In the Chapter 3 Applying Tableau you compared two companies liquidity In this case you continue in your role as an analyst conducting research into the relative merits of investing in one or both of these companies For this case you will assess the companies return on assets and how that return is related to both profit margin and asset turnover Tableau Instructions For this case you will create several calculations and produce a text chart of profitability ratios to compare and contrast the two companies To do so you will need to be able to change data from continuous to discrete Use the following steps to create the charts you will need for this case Download the Excel file DiscountGoodsBigStoreFinancials Open Tableau and connect to the Excel file Click on the Sheet 1 tab at the bottom of the canvas to the right of the Data Source at the bottom of the screen Drag Year and Company to the Rows shelf Change Year to discrete by rightclicking and selecting Discrete Drag the Net incomeloss Net sales and Average total assets under Measure Names to the Rows shelf Change each to discrete following the process above Create a calculated field by clicking the Analysis tab at the top of the screen and selecting Create Calculated Field A calculation box will pop up Name the calculation Return on Assets In the calculation box from the Rows shelf drag Net incomeloss type a division sign then drag Average total assets beside it Make sure the box says that the calculation is valid and click OK Repeat the process by creating a calculated field named Profit Margin on Sales that consists of Net incomeloss divided by Net sales Repeat the process one more time by creating a calculated field Asset Turnover that consists of Net sales divided by Average total assets Drag the newly created Return on Assets to add it to the Rows shelf Format it to discrete Right click on Return on Assets and click Format On the left you will see a format bar Under Default choose Alignment then Horizontal Center Then click on Numbers and choose Percentage Drag the newly created Profit Margin on Sales and Asset Turnover to the Rows shelf Format them both as discrete and center aligned Profit Margin on Sales should be formatted as percentage Asset Turnover should be formatted as Number Custom with 2 decimal places Rightclick the Net income loss Net sales and Average total assets on the Rows shelf and unselect Show header This will hide these items from view but still allow them to be used in formulas Doubleclick the tab at the bottom of the page and type Profitability Ratios to change the name of the sheet To hide the abc column which appears when all variables are discrete click on the Marks Card and choose Polygon This will hide the letters Then click and drag the edge of the column to make it as small as possible Click on the New Worksheet tab on the lower left Sheet 2 should open Drag Year to the Columns shelf and Return on Assets Profit Margin on Sales and Asset Turnover to the Rows shelf Drag Company under Tables to Color on the All section of the Marks card You should now see two lines in each of the three graphs Doubleclick the tab at the bottom of the page and type Graph of Profitability Ratios to change the name of the sheet Save your work Required Based on the visualization you created answer the following questions What is the Big Stores return on assets in a 2012 and b 2021 What is the Discount Goodss return on assets in a 2012 and b 2021 To help determine why the relative profitability of the two companies has shifted over the tenyear period and to get a better companytocompany comparison drag the second pill Year Dimension to the left of the pill Company Dimension in the text chart The return on assets is a result of the profit margin and the asset turnover Demonstrate this for Big Store in 2021 by showing that the profit margin times the asset turnover equals return on assets Analyzing the asset turnover ratios over the tenyear period is Big Stores asset turnover a generally increasing b roughly the same or c generally decreasing from year to year Analyzing the asset turnover ratios over the tenyear period is Discount Goods turnover a generally increasing b roughly the same or c generally decreasing from year to year As of 2021 which company reports a more favorable return on assets and is this primarily attributable to its asset turnover or profit margin

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