With this case, a comparison is made between two firms in different industries using net profit margin, total asset turnover, and return on assets. *Johnson

With this case, a comparison is made between two firms in different industries using net profit margin, total asset turnover, and return on assets.

*‘‘Johnson & Johnson and its subsidiaries have approximately 118,700 employees worldwide engaged in the research and development, manufacture and sale of a broad range of products in the health care field.'' 10-K
Required
a. Compute the following ratios for Johnson & Johnson:
1. Net profit margin
2. Total asset turnover
3. Return on assets
b. Compute the following ratios for Best Buy Co.:
1. Net profit margin
2. Total asset turnover
3. Return on assets
c. Comment on the effect of the industry on these ratios.
*‘‘We are a specialty retailer of consumer electronics, home office products, entertainment software, appliances and related services.''10-K

JOHNSON & JOHNSON CONSOLIDATED STATEMENT OF EARNINGS Year Ended December 28, 2008 (Dollars in millions, except per share) Sales to customers Cost of products sold Gross proft Selling, marketing, and administrative expenses Research expense Purchased in-process research and development Interest income $63,747 18,511 45,236 21,490 7,577 181 (361) Interest expense, net of capitalized Other (income) expense, net 435 (1,015) 28,307 16,929 3,980 $12,949 $ 4.62 4.57 Earnings before provision for taxes on income Provision for taxes on income Net eamings Basic net earnings per share Diluted net eamings per share From consolidated balance sheet Total assets December 28, 2008 December 30, 2007 $84,912 $80,954