The 2016 financial statements of The New York Times Company reveal average shareholders' equity attributable to controlling interest of $837,283 thousand, net operating profit after tax of $48,032 thousand, net income attributable to The New York Times Company of $29,068 thousand, and average net operating assets of $354,414 thousand.
The company's return on equity (ROE) for the year is:
A) 3.5%
B) 13.8%
C) 6.9%
D) 14.3%
E) There is not enough information to calculate the ratio.

Question

Quizplus · Accepted Answer

ROE is calculated as Net Income divided by Average Shareholders' Equity. Here, ROE = $29,068 / $837,283 = 0.0347 or 3.5%.

The 2016 Financial Statements of the New York Times Company