Compute the net profit margin for johnson and johnson

Assignment Help Financial Management
Reference no: EM131318409

RETURN ON ASSETS - INDUSTRY COMPARISON
With this case, a comparison is made between two firms in different industries using net profit margin, total asset turnover, and return on assets.

254_Tab 01.jpg

1975_Tab 02.jpg

Required
a. Compute the following ratios for Johnson & Johnson:
1. Net profit margin
2. Total asset turnover
3. Return on assets

b. Compute the following ratios for Best Buy Co.:
1. Net profit margin
2. Total asset turnover
3. Return on assets

c. Comment on the effect of the industry on these ratios.

Reference no: EM131318409

Questions Cloud

What is the operating cash flow for year 5 : The project requires $36,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 5-year life of the project. The salvage value of the fixed assets is $8,400 and the tax rate is 34 percent. What is the op..
Create a matrix for histogram-bar graph : Create a matrix for 3 of the following tools used in quality improvement:Bar graph,Histogram,Pareto chart,Pie chart,Line chart etc.The purpose of each tool.Examples for when each tool can be used for quality improvement.A comparison of the tools.
What is the role of finance in a strategic plan : 1) What is the role of finance in a strategic plan? 2) What are operating and financial plans? Please elaborate
Write a paper about digitalization : You need to write a paper about digitalization. - How to retain customer value in retail mobile applications and Supporting question: How to increase customer value through activities - What are the key indicators to measure the success?
Compute the net profit margin for johnson and johnson : Compute the Net profit margin, Total asset turnover, and Return on assets ratios for Johnson & Johnson:- Comment on the effect of the industry on these ratios.
Who does your country identify itself nationalistically : Who are the main actors in creating your country's foreign policy? Who does your country identify itself nationalistically? Does the countries nationalism play a role in determining domestic or foreign policy
Explain how the situation would be different : Next, imagine yourself as a practitioner of servant leadership. You have been appointed into the leadership role in this same circumstance. Explain how the situation would be different.
Describe factors you believe should be considered in risk : Describe other factors you believe should be considered in risk management. The assignment should be comprehensive and include specific examples. The paper should be formatted according to APA.
How long are the project and feeder buffers : What is the duration of the project? How much slack is currently available in the non-critical path? How long are the project and feeder buffers?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the equilibrium rate of return on treasury bond

The real risk-free rate is 3.05%, inflation is expected to be 2.60% this year, and the maturity risk premium is zero. Ignoring any cross-product terms, what is the equilibrium rate of return on a 1-year treasury bond?

  Futures price of commodity-what is the value of contract

The futures price of a commodity such as corn is $1.00. The contracts are for 10,000 bushels, so a contract is worth $10,000. The margin requirement is $1,000 a contract, and the maintenance margin requirement is $600. How much must you initially rem..

  What is its return on stockholders equity

Easter Egg Company has $2,000,000 in assets and $1,400,000 in debt. It reports net income of $200,000. What is the return on assets? What is its return on stockholder’s equity? If the company has an asset turnover ratio of 2.5 times, what is the prof..

  Additional positive cash flows be ascribable

You are contemplating the purchase of a one-half interest in a corporate airplane to facilitate the expansion of your business into two new geographic areas. If negative, what additional annual cash flows would be needed for the NPV to equal zero? To..

  What is conundrums expected current share price

Conundrum Mining is expected to generate $12 million, $18 million, $22 million and $26 million in free cash flows over the next four years, after which they are expected to grow at a rate of 5% per year. If the weighted average cost of capital is 12%..

  What was the average real return for treasury bills

Consider the following table for a seven-year period: Returns Year U.S. Treasury Bills Inflation Year 1 3.60 % −1.18 % Year 2 3.45 −2.32 Year 3 4.35 −1.22 Year 4 4.77 0.64 Year 5 2.57 −6.46 Year 6 1.45 −9.38 Year 7 1.18 −10.33 Required: What was the ..

  Does gold have intrinsic value

Does gold have intrinsic value? Why might Buiter have said that it didn't?- In what sense does a bubble in the price of an asset result from a "set of self-confirming beliefs"?

  Desires to pay remainder of loan in single payment

Clay Harden borrowed $38000 from a bank at an interest rate of 12% compounded monthly. The loan will be repaid in 48 equal monthly installments over four years. Immediately after this 18th payment, Clay desires to pay the remainder of the loan in a s..

  Proposal using the capital budgeting criteria

Jim Krakauer proposes to expand his restaurant supply business by adding an HVAC repair unit. Currently his customers, almost all restaurant owners, buy or order equipment from his sow room floor or from a warehouse of used equipment located behind h..

  What is the break-even point in dollar sales

Donna Karan produces swimming trunks. The average selling price of one of the company's trunks is $40.18. The variable cost per unit is $18.84, and Donna Karan has average fixed costs per year of $38198. What is the break-even point in dollar sales?

  What is the best estimate of these bonds remaining life

Lloyd Corporation's 14% coupon rate, semi annual payment, $1,000 par value bonds, which mature in 30 years, are callable 5 years from today at $1,050. They sell at a price of $1,353.54, and the yield curve is flat. Assume that interest rates are expe..

  What is the profitability index for each project

What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Payback period Project A years Project B years. What is the profitability index for each project? What is the..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd