Question: ROI Form groups of three to six students. Each student should select a company. Coordinate the selection of companies so that each group has companies from a wide variety of industries. For example, a good mix of industries for a group of five students would be a retail company, a basic manufacturing company, a computer software company, a bank, and an electric utility company.
1. Each student should find the latest annual report for his or her company. (If you cannot find the company's home page, try www.sec.gov, and search the Security and Exchange Commission's Edgar files for the company's 10-K report, which will contain its financial statements.) Compute the following:
a. Return on sales
b. Capital turnover
c. ROI
2. As a group, compare these performance metrics for the chosen companies. Why do they differ across companies? What characteristic of the company and its industry might explain the differences in the measures?