There are two companies in the market. Company A in 2022 has generated a revenue of $74,452,000 with a cost $74,132,000. Company B in 2022 has generated a revenue of $12,148,000 with a cost $11,988,000. According to their financial reports, the value of the assets owned by the company A is $40,000,000, including $20,000,000 liabilities. The value of the assets owned by the company B is $30,000,000, including $20,000,000 liabilities.

1) Calculate ROA, ROE, profit margin and asset turnover for company A.

2) Calculate ROA and ROE for company B and decide which company has a better financial performance

Answer rating: 100% (QA)

To calculate the financial ratios for Company A and Company B we can use the given information 1 For ... View the full answer