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13 January, 12:15

Suppose during 2017 that Federal Express reported the following information (in millions) : net sales of $34,450 and net income of $89. Its balance sheet also showed total assets at the beginning of the year of $24,590 and total assets at the end of the year of $23,300. Calculate the asset turnover and return on assets.

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  1. 13 January, 15:49
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    The asset turnover is 1.44 and return on assets is 0.37%

    Explanation:

    Average Total assets

    Assets in the beginning $24,590

    Assets at the end $23,300

    Average assets $23945

    Sales $34,450

    Divide: Average assets $23945

    Assets turnover ratio 1.44

    Net Income $89

    Divide: Average assets $23945

    Return on assets 0.37%

    Therefore, The asset turnover is 1.44 and return on assets is 0.37%
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