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Net Profit Margin and Other Ratios

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See the attachment for Daktronics' data and answer the following:

Compute the following for 2005 and 2004:
1. Net profit margin
Z. Total asset turnover (use year-end assets)
3. Return on assets (use year-end assets)
4. Operating income
5. Return on operating assets (use year-end assets)
6. Sales to fixed assets (use year-end fixed assets)
7. Return on investment (use year-end balance sheet accounts)
8. Return on total equity (use year-end equity)
9. Return on common equity (use year-end common equity)
10. Gross profit margin
Comment on the trends in (a).

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https://brainmass.com/business/profit-margin/net-profit-margin-other-ratios-422370

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2005 2004

Net Profit Margin= Net Profit/Sales 6.80% 8.45%

Total Asset Turnover= Sales/Total Assets 1.52 1.66

Return on Assets= Net Profit/Total Assets 10.34% 14.04%

Operating Income Margin= Operating ...

Solution Summary

This solution helps in calculating a range of financial ratios in the attached files.

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The Eddison Electronics Company (EEC) owns a wide variety of manufacturing companies that make sophisticated electronic controls. You are EEC's corporate business financial analyst.

Scenario:

The Eddison Electronics Company (EEC) owns a wide variety of manufacturing companies that make sophisticated electronic controls. You are EEC's corporate business financial analyst. Your responsibilities include the following:

Creating and analyzing the monthly performance of each company within EEC.
Providing and analyzing costing information for each company within EEC.
Analyzing the major capital projects submitted by each company.

EEC has introduced a new 1.5GB computer memory chip. The following is the plan and first-year results of the 1.5GB chip project and the financial activity for 2006.

ASSIGNMENT:
Using the Library and other course resources, find a manufacturing company's annual report.

Calculate the following ratios for the company selected:

Return on Assets
Return on Equity
Gross Profit Margin
Debt/Equity Ratio
Debt Ratio
Current Ratio
Quick Ratio
Inventory Turnover
Total Asset Turnover
Price Earnings Ratio
Using the calculated ratios, analyze the financial performance of the firm. In a memo to the CEO, explain the ratios calculated. Also address other methods of analyzing financial statements besides ratio analysis. Lastly, explain your analysis of the firm, making recommendations for improvements.

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