Problem 7-9A Calculate and interpret ratios [LO7] Dell Corporation and Apple Inc
ID: 2704338 • Letter: P
Question
Problem 7-9A Calculate and interpret ratios [LO7]
Dell Corporation and Apple Inc. reported the following information in their 2009 annual financial statements ($ in millions):
Problem 7-9A Part 1
Calculate Dell
Dell Corporation and Apple Inc. reported the following information in their 2009 annual financial statements ($ in millions):
Dell Corporation and Apple Inc. reported the following information in their 2009 annual financial statements ($ in millions): Calculate Dell's return on assets, profit margin, and asset turnover ratio for 2009.Explanation / Answer
1.Dells
Return on asset=net income/total asset
=2478/26500=0.09
Profit margin=income/sales)*100
=2478/61101=0.0405=4.05
Asset turnover ratio=sales/total asset
=61101/26500=2.3
Apple
return on asset=5704/53581=0.106
profit margin=5704/36537=0.156 or 15.6
asset turnover ratio=36537/53581=0.68