Quantum Moving Company Solution: Year Net Income Total Assets Industry Data on N
ID: 2692861 • Letter: Q
Question
Quantum Moving Company Solution:Year Net Income Total Assets Industry Data on
Net Inc./Tot. Assets a) Year Quantum Ratio Industry Ratio As an industry analyst comparing the firm to the industry, are you likely to praise or criticize the firm in terms of:
2008 $350,000 $2,800,000 11.5%
2008
2009 $375,000 $3,200,000 8.4%
2009
2010 $375,000 $3,750,000 5.5%
2010
Quantum Moving Company
Year Debt Total Assets Industry Data on
Debt/Tot. Assets b) Year Quantum Ratio Industry Ratio As an industry analyst comparing the firm to the industry, are you likely to praise or criticize the firm in terms of:
2008 $1,624,000 $2,800,000 54.1%
2008
2009 $1,730,000 $3,200,000 42.0%
2009
$1,900,000 $3,750,000 33.4%
2010
Quantum Moving Company Solution:
Year Net Income Total Assets Industry Data on
Net Inc./Tot. Assets a) Year Quantum Ratio Industry Ratio As an industry analyst comparing the firm to the industry, are you likely to praise or criticize the firm in terms of:
2008 $350,000 $2,800,000 11.5%
2008
2009 $375,000 $3,200,000 8.4%
2009
2010 $375,000 $3,750,000 5.5%
2010
Quantum Moving Company
Year Debt Total Assets Industry Data on
Debt/Tot. Assets b) Year Quantum Ratio Industry Ratio As an industry analyst comparing the firm to the industry, are you likely to praise or criticize the firm in terms of:
2008 $1,624,000 $2,800,000 54.1%
2008
2009 $1,730,000 $3,200,000 42.0%
2009
$1,900,000 $3,750,000 33.4%
2010
Explanation / Answer
Quantum Moving Company
a. Net income/total assets Year 2008 2009 2010
Quantum Ratio 12.5% 11.7% 10.0%
Industry Ratio 11.5% 8.4% 5.5%
Although the company has shown a declining return on assets since 2008, it has performed much better than the industry. Praise may be more appropriate than criticism.