Solution-Compute rate of return on assets and profit margin

Compute rate of return on assets and profit margin on sales

Reference no: EM131939515

Problem - Matheny Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a dividend policy. In the past, growth has been financed primarily through the retention of earnings. A stock or a cash dividend has never been declared. Presented below is a brief financial summary of Matheny Inc. operations.

	($000 omitted)
	2013	2012	2011	2010	2009
Sales	$20,900	$16,130	$14,260	$6,090	$4,660
Net income	2,650	1,440	870	710	280
Average total assets	22,150	19,950	11,710	4,850	3,180
Current assets	8,590	7,550	3,270	1,890	1,500
Working capital	4,560	3,350	1,760	570	500
Common shares:
Number of shares outstanding (000)	2,400	2,400	2,400	30	30
Average market price	$9	$6	$3	-	-

Compute the rate of return on assets, profit margin on sales, earnings per share, price-earnings ratio, and current ratio for each of the 5 years for Matheny Inc.

Reference no: EM131939515

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Compute rate of return on assets and profit margin on sales

Reference no: EM131939515

Reference no: EM131939515

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