Include the overall probability analysis for all companies (1,2,3,4). In the last sentence of the paragraph identify which company is better from the perspective of profitability.

Company 1

Company 2

Company 3

Company 4

2017 2018 2019 3 Profitability Ratios: 4 5 Return on Equity 6 Profit avail to owners/ 7 Average Equity B Answer: 29,352,000.00 338,469,500.00 8.67% 44,000,000.00 381,282,500.00 11.54% 53,886,000.00 397,625,000.00 13.55% % % 29,352,000.00 537,214,500.00 5.46% 44,000,000.00 613,912,500.00 7.17% 53,886,000.00 637,160,000.00 8.46% 29,352,000.00 635,181,000.00 4.62% 44,000,000.00 702,379,000.00 6.26% 53,886,000.00 796,379,000.00 6.77% % .0 Return on Assets: -1 Net profit (loss) / .2 Average total assets 23 Answer: 4 5 Profit Margin -6 Net profit (loss) / -7 Sales Revenue (note used operating revenue) -8 Answer: 9 20 Gross Profit Margin 21 Gross profit/ 22 Sales Revenue (note used operating revenue) 23 Answer: 24 5 Cash Flow to Sales Ratio 6 Cash Flow from Operating Activities/ 27 Sales Revenue (note used operating revenue) 28 Answer: 19 RV-Cost of sale 314,849,000.00 410,279,000.00 635,181,000.00 702,379,000.00 49.57% 58.41% 457,038,000.00 796,379,000.00 57.39% % % 45,419,000.00 70,068,000.00 65,687,000.00 635,181,000.00 702,379,000.00 796,379,000.00 7.15% 9.98% 8.25% 2017 2018 2019 3,253,000 37,189,000 8.75% 17,293,000 86,223,000 20.06% 8,130,000 108,070,000 7.52% % % 3,253,000 99,196,500 3.28% 17,293,000 53,064,500 32.59% 8,130,000 129,151,500 6.29% 1 Ratio Calculations 2 3 Profitability Ratios: 4 5 Return on Equity 6 Profit avail to owners/ 7 Average Equity 8 Answer: 9 LO Return on Assets: 11 Net profit (loss) / 12 Average total assets 13 Answer: 14 15 Profit Margin 16 Net profit (loss) / 17 Sales Revenue (note used operating revenue) 18 Answer: 19 20 Gross Profit Margin 21 Gross profit / 22 Sales Revenue (note used operating revenue) 23 Answer: 24 25 Cash Flow to Sales Ratio 26 Cash Flow from Operating Activities/ 27 Sales Revenue (note used operating revenue) 28 Answer: 29 3,253,000 311,483,000 1.04% 17,293,000 369,000,000 4.69% 8,130,000 877,858,000 0.93% % 196,707,000 311,483,000 63.15% 238,133,000 369,000,000 64.53% 495,075,000 877,858,000 56.40% % % 33,405,000 311,483,000 10.72% 21,728,000 369,000,000 5.89% 23,483,000 877,858,000 2.68% 2017 2018 2019 8,481,000 42,399,500 20.00% 503,000 46,891,500 1.07% -3,858,000 45,214,000 -8.53% % % 8,481,000 58,759,500 14.43% 503,000 68,121,000 0.74% -3,858,000 72,130,500 -5.35% 1 Ratio Calculations 2 3 Profitability Ratios: 4 5 Return on Equity 6 Profit avail to owners/ 7 Average Equity 8 Answer: 9 10 Return on Assets: 11 Net profit (loss) / 12 Average total assets 13 Answer: 14 15 Profit Margin 16 Net profit (loss) / 17 Sales Revenue (note used operating revenue) 18 Answer: 19 20 Gross Profit Margin 21 Gross profit / 22 Sales Revenue (note used operating revenue) 23 Answer: 24 25 Cash Flow to Sales Ratio 26 Cash Flow from Operating Activities/ 27 Sales Revenue (note used operating revenue) 28 Answer: 29 8,481,000 97,576,000 8.69% 503,000 85,577,000 0.59% -3,858,000 86,357,000 -4.47% % 70,886,000 97,576,000 72.65% 60,972,000 85,577,000 71.25% 60,842,000 86,357,000 70.45% % % 7,661,000 97,576,000 7.85% 505,000 85,577,000 0.59% 1,812,000 86,357,000 2.10% Ratio Calculations Profitability Ratios: 2017 2018 2019 Return on Equity Profit avail to owners/ Average Equity Answer: 9249000 284,260,000 3% 20371000 328, 129,500 6% 53022000 397,321,500 13% % Return on Assets: Net profit (loss) / Average total assets Answer: % 9,249,000 464,731,500 1.99% 20,371,000 498, 122,000 4.09% 53,022,000 534,704,500 9.92% Profit Margin Net profit (loss) / Sales Revenue (note used operating revenue) Answer: 9,249,000 239,981,000 3.85% 20,371,000 206,549,000 9.86% 53,022,000 298,204,000 17.78% % Gross Profit Margin Gross profit / Sales Revenue (note used operating revenue) Answer: 45,741,000 239,981,000 19.06% 33,926,000 206,549,000 16.43% 96,568,000 298,204,000 32.38% % Cash Flow to Sales Ratio Cash Flow from Operating Activities/ Sales Revenue (note used operating revenue) Answer: % 4,738,000 239,981,000 1.97% 18,287,000 206,549,000 8.85% 80,337,000 298, 204,000 26.94%