The following financial information (in millions) is for two major corporations for three fiscal years ended December
Question:
Instructions
(a) Calculate return on assets and return on equity for each company for 2014 and 2013. Comment on whether their ratios have improved or deteriorated.
(b) Compare Husky's ratios with Suncor's.
(c) The five-year industry average for return on equity is 14.06%. Compare the two companies' performance with the industry average.
TAKING IT FURTHER
Using your findings in this question to illustrate, explain why it is important to use comparisons in evaluating ratios.
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Related Book For
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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