Which affiliate has the highest return on sales


Omni Technology Holding Company has the following three affiliates:

Personal    International
Software    Computers Operations
Sales    $40,000,000    $60,000,000    $100,000,000
Net Income (after tax)    2,000,000    2,000,000    8,000,000
Assets    5,000,000    25,000,000 60,000,000
Stockholder equity    4,000,000    10,000,000    50,000,000

Q1. Which affiliate has the highest return on sales?

Q2. Which affiliate has the lowest return on assets? Explain why.

Q3. Which affiliate has the highest total asset turnover?

Q4. Which affiliate has the highest return on stockholder equity?

Q5. Which affiliate has the highest debt ratio? (assets minus stockholder equity = debt)

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Finance Basics: Which affiliate has the highest return on sales
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