Task
a) Using the financial statement of BME in the questions-
calculate the following:
• Return on Assets (ROA)=Net income/Total Assets
o Compare your answer with industry average (5.2%) under Task 2b and comment on it. If your answer for ROA is lower than industrial average what does that mean, or if it is greater than industrial average what does that mean?
• Current Ratio= Current Assets/Current liabilities
o Compare your answer with industrial average (2.0) under Task 2b and comment on it. If the current Ratio obtain is lower than industrial average what does that mean, or if it is greater than industrial average what does that mean?
• Debt Ratio=Debt/Assets x 100%
o Compare your answer with industrial average (69%) under Task 2b and comment on it. If the Debt Ratio obtain is lower than industrial average what does that mean, or if it is greater than industrial average what does that mean?
