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Return on assets, profit margin and asset utilization rate

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Assess the financial position of Textron in comparison to Gulfstream. The emphasis is on cash flow for this analysis.
1) Compute the return on assets, profit margin and asset utilization rate for Textron and Gulfstream.
2) Assess Textron's competitive financial position.
3) Compute the free cash flow for Textron and Gulfstream.
4) Assess Textron's cash position and comment on its receipt and use of cash during the year.

www.textron.com
www.gulfstream.com

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Solution discusses the return on assets, profit margin and asset utilization rate for Textron and Gulfstream

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Textron vs Gulf Stream

1) Compute the return on assets, profit margin and asset utilization rate for Textron and Gulfstream.
Return on Assets = Net Profit/Assets *100
Net Profit Margin = Net Profit/Sales* 100
Asset Utilization = Sales/Total Assets
Ratios for Textron is:
Return on Assets= 242/13615 *100
= 1.77%
Net Profit Margin = 242/11275* 100
= 2.14%
Asset Utilization = 11275/13615
= 0.83 times

Return on Assets = 2526/34883 *100
= ...

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