Question: Using the data in the following table for a number of firms inthe same industry, do the following: a) compute the total asset turnover, the
Using the data in the following table for a number of firms inthe same industry, do the following:
a) compute the total asset turnover, the net profit margin,the equity multiplier, and the return on equity for eachfirm.
b) evalute each firms performance by comparing the firms withone another which firm or firms appear to be having problems? whatcorrective action would you suggest the poorer performing firmstake? finally what data would you want to have on hand whenconducting your data?
In millions
Firm A: sales=$20, net income after tax=3, totalassets=15, stock holders equity=10
Firm B: sales =10, net income after tax=.5, total assets=7.5,stock holders equity=5.0
Firm C: sales =15 net income after tax=2.25, total assets=15,stockholders equity=14
Firm D: sales=25, net income after tax=3, total assets=24,stockholders equity=10
*Specifically need help with part b, the analysis of how the firms are doing
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