contestada

Syke Under Shield
$ millions Current Year 1 Year prior Current Year 1 Year prior
Net income $ 3,107 $ 3,408 $ 981 $ 2,092
Net sales 27,268 32,496 19,521 37,234
Total assets 18,611 23,494 15,982 28,656

1. Compute the return on total assets for the current year for (a) Syke and (b) Under Shield.

Respuesta :

Answer:

For Skye - 15.85%

For under shield - 5%

Skye is using its asset more efficiently because its ROA is higher

Step-by-step explanation:

Return on total assets =  Net income / Average total assets

For Skye

$3192 /  [(18,764 + 21,512)/2] = 0.1585 = 15.85%

For under shield

$ 649 / [(10,252 + 15,659)/ 2] = 0.05 = 5%

Skye is using its asset more efficiently because its ROA is higher

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