Problem 7-9A Calculate and interpret ratios [LO7] Dell Corporation and Apple Inc

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):

Calculate and interpret ratios Dell Corporation and Apple Inc. reported the following information in their 2009 annual financial statements Calculate Dell's return on assets, profit margin, and asset turnover ratio for 2009. Calculate Apple's return on assets, profit margin, and asset turnover ratio for 2009.

Explanation / Answer

1.

Return on asset=2478/27030.5=0.0916

Profit margin=2478/61101=0.0405=4.05%

Asset turnover ratio=61101/26500=2.3

2.

return on asset=5704/46576.5=0.12246

profit margin=5704/36537=0.156 or 15.6%

asset turnover ratio=36537/53581=0.68

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