Q1. Return on Assets(ROA) Component 2015 2014
Profitability (Net income/Sales) 9.20% 13.30%
Productivity (Sales/Average assets) 1.41 % 1.32%
Compute the company's ROA for 2015.
Q2. Computing Return on Assets and Applying the Accounting Equation
Assume Nordstrom Inc. reports net income of $567 million for its fiscal year ended January 2016. At the beginning of that fiscal year, Nordstrom had $9,134 million in total assets. By fiscal year ended January 2016, total assets had decreased to $7,587 million.
What is Nordstrom's ROA?
Q3. Computing Return on Equity
Starbucks reports net income for 2015 of $2,558.4 million. Its stockholders' equity is $5,716 million and $6,262 million for 2014 and 2015, respectively.
a. Compute its return on equity for 2015.