The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation

Question:

The financial statements of Columbia Sportswear Company are presented in Appendix B. Financial statements of VF Corporation are presented in Appendix C.

Instructions

(a) Based on the information in these financial statements, compute the 2014 return on common stockholders' equity, debt to assets ratio, and return on assets for each company.

(b) What conclusions concerning the companies' profitability can be drawn from these ratios? Which company relies more on debt to boost its return to common shareholders?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...