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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

    © BrainMass Inc. brainmass.com June 4, 2020, 2:30 am ad1c9bdddf
    https://brainmass.com/business/accounting/return-on-assets-profit-margin-and-asset-utilization-rate-461749

    Solution Preview

    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
    = ...

    Solution Summary

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

    $2.19

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