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Analyze the following ratios. What does the NET PROFIT MARGIN RATIO tell about this company? Are the...

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Finance

Analyze the following ratios.

What does the NET PROFIT MARGIN RATIO tell about this company?Are the trends getting better or worse? Why or why not? Would yourecommend purchase of this stock? Why or why not? Please explainyour answers.

Net Profit

2016

2017

2018

Margin Ratio

10.91

8.97

8.71

What does the RETURN ON TOTAL ASSETS RATIO tell about thiscompany? Are the trends getting better or worse? Why or why not?Would you recommend purchase of this stock? Why or why not? Pleaseexplain your answers.

Return Total

2016

2017

2018

Assets Ratio

6.75%

5.10%

5.06%

Answer & Explanation Solved by verified expert
4.0 Ratings (689 Votes)
Net profit ratio shows the profitability of company that is percentage of net pofit earned by company over its sales From the net profit ratio given for 3 years it can be seen that the margin ratio    See Answer
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