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Required 1 Required 2 Required 3 Required 4 Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. ($ in millions) InGen RDA InGen RDA Cash Flow to Sales Numerator/Denominator Amounts 0 0 Asset Turnover Numerator/Denominator Amounts 0 times < Required 2 Required 4 > 0 times

Required 1 Required 2 Required 3 Required 4 Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. ($ in millions) InGen RDA InGen RDA Cash Flow to Sales Numerator/Denominator Amounts 0 0 Asset Turnover Numerator/Denominator Amounts 0 times < Required 2 Required 4 > 0 times

Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
9th Edition
ISBN:9781305635937
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 7DQ: From the Google Finance site, use the DuPont analysis to determine the total assets turnover ratio...
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International Genetic Technologies (InGen) and The Resources Development Association (RDA) are companies involved in cutting-edge genetics research. Selected financial data for (InGen) and (RDA) are provided below:

 

($ in millions) InGen RDA
Net sales $127,245 $106,916
Net income 7,074 15,855
Operating cash flows 12,639 19,846
Total assets, beginning 124,503 113,452
Total assets, ending 129,517 116,433

 

Required:

1. Calculate the return on assets for both companies.

2. Calculate the cash return on assets for both companies.

3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.

4. Which company has the more favorable ratios?


(For all requirements, round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).)

Required 1 Required 2 Required 3 Required 4 Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. ($ in millions) InGen RDA InGen RDA Cash Flow to Sales Numerator/Denominator Amounts 0 0 Asset Turnover Numerator/Denominator Amounts 0 times < Required 2 Required 4 > 0 times
Transcribed Image Text:Required 1 Required 2 Required 3 Required 4 Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. ($ in millions) InGen RDA InGen RDA Cash Flow to Sales Numerator/Denominator Amounts 0 0 Asset Turnover Numerator/Denominator Amounts 0 times < Required 2 Required 4 > 0 times
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