What Is ABC Sport's Profitability?
Profitability
Formula: Return on assets (ROA) = Net Profit before taxes / Average total assets
Components: ABC Sports Ltd.’s return on assets (ROA) are presented below
Return on Assets=23,910/ (40,000+43.074)/2=57.6% (2013)
Return on Assets=23,828/ (43,074+66,198)/2=43.6% (2014)
Return on Assets=27,259/ (66,198+96,362)/2=33.5% (2015)
As indicated the above data, ABC Sports Ltd.’s return on assets are 57.6%, 43.6% and 33.5% from 2013 to 2015. In other words, ABC Sports Ltd. generated respectively $0.576 cents, $0.436 cents and $0.335 cents on every dollar from fiscal year 2013 to 2015. The data indicates how well a firm can make a profit on its investment in assets, and it is also a good indicator that how effectively a firm is using its
Formula: Return on assets (ROA) = Net Profit before taxes / Average total assets
Components: ABC Sports Ltd.’s return on assets (ROA) are presented below
Return on Assets=23,910/ (40,000+43.074)/2=57.6% (2013)
Return on Assets=23,828/ (43,074+66,198)/2=43.6% (2014)
Return on Assets=27,259/ (66,198+96,362)/2=33.5% (2015)
As indicated the above data, ABC Sports Ltd.’s return on assets are 57.6%, 43.6% and 33.5% from 2013 to 2015. In other words, ABC Sports Ltd. generated respectively $0.576 cents, $0.436 cents and $0.335 cents on every dollar from fiscal year 2013 to 2015. The data indicates how well a firm can make a profit on its investment in assets, and it is also a good indicator that how effectively a firm is using its