Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

تمرين 43

Profitability ratios
Ralph Lauren Corporation sells apparel through company-owned retail stores. Recent financial information for Ralph Lauren follows (in thousands):

Assume the apparel industry average return on total assets is 8.0%, and the average rate earned on stockholders' equity is 10.0% for the year ended April 2, Year 3.
A. Determine the return on total assets for Ralph Lauren for fiscal Years 2 and 3. (Round percentages to one decimal place.)
B. Determine the return on stockholders' for Ralph Lauren for fiscal Years 2 and 3. (Round percentages to one decimal place.)
C. Evaluate the two-year trend for the profitability ratios determined in (A) and (B).
D. Evaluate Ralph Lauren' performance relative to the industry.