Chapter 11
Financial Statement Analysis
558
Required
a) Calculate the profitability ratios shown in the table below.
Rock Co.
Roll Inc.
Gross Profit Margin
EBIT
EBIT Percentage to Sales
Net Profit Margin
Return on Equity (ROE)
Return on Assets (ROA)
b) Based on the ratios from part a), which company would an investor be more likely to
invest in?
