Presented below are summary financial data from the Deno's Inc. annual report: (In millions) Year 2...

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Presented below are summary financial data from the Deno's Inc. annual report: (In millions) Year 2 Year 1 Balance sheet Total assets $111,005 $153,304 Shareholders' equity 68,612 69,493 Income statement Net sales Net income $101,303 14,132 $96,004 14,490 A. Calculate the following ratios for Years 1 and 2: 1. Return on equity 2. Return on assets (levered) 3. Return on sales (levered) 4. Total asset turnover 5. Financial leverage B. Comment on the trends revealed by your analysis in Part A. Presented below are summary financial data from the Deno's Inc. annual report: (In millions) Year 2 Year 1 Balance sheet Total assets $111,005 $153,304 Shareholders' equity 68,612 69,493 Income statement Net sales Net income $101,303 14,132 $96,004 14,490 A. Calculate the following ratios for Years 1 and 2: 1. Return on equity 2. Return on assets (levered) 3. Return on sales (levered) 4. Total asset turnover 5. Financial leverage B. Comment on the trends revealed by your analysis in Part A.

Answer rating: 100% (QA)

A Calculation of Ratios 1 Return on Equity ROE ROE Net Income Shareholders Equity Year 2 ROE 14490 68612 02112 or 2112 Year 1 ROE 14132 69493 02034 or ... View the full answer