Calculate the return on assets and the return on equity

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Reference no: EM132489148

USD mil Colgate-Palmolive

                         2012                             2013                           2014                      2015

Revenue             16,734                    17,085                      17,420                 17,277

Net income           2,431                   2,472                          2,241                   2,180

Total Assets         12,724                 13,394                          13,876                13,459

Shareholders' Equity 6,953                 7,163                             7,303                7,917

Industry

2015

Profit Margin                           10.58%

Total Asset Turnover                0.74

Leverage                                 2.28

ROE                                       17.85%

Question a. Calculate the return on assets and the return on equity for each year.

Question b. Discuss the changes in returns from year to year using the decomposition of ROE.

Question c. Comment on Colgate-Palmolive's' ROE in 2015 relative to the industry.

Reference no: EM132489148

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