Compute return on equity for the two recent years

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Reference no: EM133100032

Question - The following table contains financial statement information for Walmart Inc.

$ millions

Total Assets

Net Income

Sales

Equity

2018

$219,295

$6,670

$510,329

$72,496

2017

204,522

9,862

495,761

77,869

2016

198,825

13,643

481,317

77,798

Required -

a. Compute return on equity (ROE) for the two recent years.

b. Compute return on assets (ROA) for the two recent years.

c. Compute profit margin (PM) for the two recent years.

d. Compute asset turnover (AT) for the two recent years.

e. Which of the following best explains the change in ROA during 2018?

The company's profitability weakened considerably.

The company's asset productivity weakened considerably.

The company had higher sales in 2018.

The company had higher assets 2018.

Reference no: EM133100032

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