Calculate the five profitability ratios

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Reference no: EM131522463

Question: Refer to the information for Adrian Express in E12-5. Industry averages for the following profitability ratios are as follows:

Gross profit ratio 45%

Return on assets 25%

Profit margin 15%

Asset turnover 2.5

times Return on equity 35%

Required: 1. Calculate the five profitability ratios listed above for Adrian Express.

2. Do you think the company is more profitable or less profitable than the industry average? Explain your answer.

Reference no: EM131522463

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