Return on Assets Ratio and Asset Turnover Ratio Campo Systems reported the follo

Question

Return on Assets Ratio and Asset Turnover Ratio Campo Systems reported the following financial data (in millions) in its annual report: 2015 2016 Net Income $15,052 $13,134 Net Sales 109,540 106,117 Total Assets 128,734 138,128 If the company's total assets are $125,676 in 2014, calculate the company's: (a) return on assets (round answers to one decimal place-ex: 10.7%) (b) asset turnover for 2015 and 2016 (round answers to two decimal places) 2015 2016 a. Return on Assets Ratio b. Asset Turnover Ratio

Explanation / Answer

Average assets 2015 = (128734+125676)/2= $127205 Average assets 2016 = (128734+138128)/2= $133431 a Resturn on assets ratio: 2015 11.8% =15052/127205 2016 9.8% =13134/133431 b Asset turnover ratio: 2015 0.86 =109540/127205 2016 0.80 =106117/133431

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