Calculating the profitability ratios


Response to the following :

1. Show the calculation of the following profitability ratios: (1) the profit margin on sales, (2) the return on assets, and (3) the return on shareholders' equity. What information about a company do these ratios offer?

2. Show the DuPont framework's calculation of the three components of return on shareholders' equity. What information about a company do these ratios offer?

Use the fictitious data.

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Financial Accounting: Calculating the profitability ratios
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