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    This posting shows how to calculate common financial ratios.

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    Please help figure out how to compute return on assets, profit margin and asset utilization rate.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:33 am ad1c9bdddf
    https://brainmass.com/business/financial-ratios/calculate-common-financial-ratios-466146

    Solution Preview

    Select any two companies, and stick with the bigger companies, because their financial statements are usually easier to find. Go to their websites, and at the bottom you should see an "investors" section. It should take you to their financial statements. You want the latest financial statement, which will be directly available on their website. Here is an example of one: This one was under SEC Filings and Annual Reports, and the financial statement is usually called a ...

    Solution Summary

    The solution provides a thorough explanation using a real company of how to compute return on assets, profit margin and asset utilization rate.

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