Purchase Solution

Return on assets, profit margin and asset utilization rate

Not what you're looking for?

Ask Custom Question

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

Purchase this Solution

Solution Summary

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

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
= ...

Purchase this Solution


Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.