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Interpreting Financial Reports: Comparison of Profitability
Two of the largest chains of clothing stores in the United States are The Gap, Inc., and Abercrombie & Fitch Co. In fiscal 2011, Gap had net income of $833 million, and Abercrombie & Fitch Co. had net income of $128 million. It is difficult to judge from these figures alone which company is more profitable because they do not take into account the relative sales, sizes, and investments of the companies. Data (in millions) needed to complete financial analysis of the two companies follow:
Gap:
net sales: $14,549
Beginning Total Assets: 7,065
Ending total assets 7,422
Beginning total liabilities 2,985
Ending total liabilities 4,667
Beginning stockholders equity 4,080
Ending stockholders equity 2,755
Abercrombie & Fitch
Net sales 4,158
Beginning Total assets: 2,941
Ending total assets: 3,048
Beginning total liabilities: 1,051
Ending total liabilities: 1,186
Beginning stockholders equity: 1,891
Ending stockholders equity: 1,862
I can’t seem to figure out the following for each company!
Return to assets %
Debt to equity ration %
Return on equity %
Can someone show me the formula along with the precent answer so I can visual see what I’m doing wrongjQuery20005214936218817429_1518113753815?
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