Calculate the return on equity for both companies

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Reference no: EM133612359

Required: Calculate the return on equity (ROE) for both companies. For Raytheon, use "Net income attributable to common shareowners" and "Total equity" to calculate the ratio. For Northrop Grumman, use "Net earnings" and "Total shareholders' equity". Which company delivers a higher return to shareholders based on ROE? Calculate the return on assets (ROA) for both companies. Which company delivers a higher return to shareholders based on ROA? Explain how a company can have a slightly higher ROA than its competitor, but a much higher ROE.

Reference no: EM133612359

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