RETURN ON ASSETS - INDUSTRY COMPARISON
With this case, a comparison is made between two firms in different industries using net profit margin, total asset turnover, and return on assets.
Required
a. Compute the following ratios for Johnson & Johnson:
1. Net profit margin
2. Total asset turnover
3. Return on assets
b. Compute the following ratios for Best Buy Co.:
1. Net profit margin
2. Total asset turnover
3. Return on assets
c. Comment on the effect of the industry on these ratios.