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    Calculate Afton's return on assets and return on equity

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    Last fiscal year, Afton Machinery had the following financial statement data:

    Sales/Assets 2.10
    Net Income/EBIT 0.65
    EBIT/Sales 0.10
    Assets/Equity 3.00

    Calculate Afton's return on assets and return on equity.

    © BrainMass Inc. brainmass.com June 3, 2020, 9:32 pm ad1c9bdddf
    https://brainmass.com/business/accounting/calculate-aftons-return-assets-return-equity-187640

    Solution Preview

    Return on Assets = Net Income/Assets = Net Income/EBIT X EBIT/Sales ...

    Solution Summary

    The solution explains how to calculate the return on equity and return on assets

    $2.19

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