Roa - return on assets, Finance Basics

Assignment Help:

ROA - Return on Assets

1683_ROA – Return on Assets.png

The Average of the industry ROA was 10.02% for 2004, 6.81% for 2005, and 7.32% for 2006. The chart showed that Lenovo had a little bit higher ROA than industry in 2004, but dropped a lot in 2005 and 2006. After the acquisition of IBM PC division, Lenovo have not used managing their return for asset well. Therefore, the earning bring back for the assets are extremely low. We would say that two years after large acquisition, companies would go through a long stage of developing. Thus, we believe that Lenovo will properly use their assets in the future after they pay back their debts. ((See Exhibit ratios)


Related Discussions:- Roa - return on assets

Materials management - supply chain management, Materials Management - Supp...

Materials Management - Supply Chain Management Materials management was once a task undertaken without the assistance of computers. Today it is unthinkable as the speed of cal

Yard stick required in ratio analysis, Yard Stick Required in Ratio Analysi...

Yard Stick Required in Ratio Analysis 1. Past performance of the company The company's previous performance past ratio is needed to gauge or measure the company's present

Management of inventories, Management of Inventories Manufacturing fir...

Management of Inventories Manufacturing firms contains three major kinds of inventories as: Work-in-progress Finished goods inventory Raw materials The firm

Explain the operations of indian stock market, Explain the Operations of In...

Explain the Operations of Indian Stock Market. Meaning of Stock Exchange: Stock exchange means an organized market where securities issued by government organizations, compan

Define meaning of investment, Define Meaning of Investment Meanin...

Define Meaning of Investment Meaning of Investment: Investment involves making of a sacrifice in the present with hope of deriving future advantages. Investment has many

Conditions under which Loans Are Ideal, Conditions under which Loans Are Id...

Conditions under which Loans Are Ideal a) Whenever the company's gearing level is low as the level of outstanding loans is low. b) The company's future cash flows as inflows

Earnings method or earning basis valuation, Earnings Method or Earning Basi...

Earnings Method or Earning Basis Valuation By using the earning valuation method, a company will employ its P/E ratio to value its shares. P/E    =  MV/E MV    =   E x P

Prepare journal and adjusting entries, Prepare Journal and Adjusting Entrie...

Prepare Journal and Adjusting Entries I need assignment help on topic Prepare Journal and Adjusting Entries. Can you please suggest me the answer. The following two events o

Illustrate role of credit unions in depository institutions, Illustrate the...

Illustrate the role of credit unions in depository institutions. Credit unions: Credit unions are non-profit institutions equally organised and owned through their member

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd