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Financial ratios: Profitability. The financial statements for Tyler Toys, Inc. are shown in the popup window: Calculate the profit margin, return on assets, and return on equity for 2013 and 2014 for Tyler Toys. Should any of these ratios or the change in a ratio warrant concern for the managers of Tyler Toys or the shareholders? 

What is the profit margin for 2014?

Homework: Chapter 14 Homework Save 6 of 9 (0 complete) HW Score: 0%, 0 of 9 pts Score: 0 of 1 pt P14-12 (similar to) EQuestioHomework: Chapter 14 Homework Save HW Score: 0%,0 of 9 pts Score: 0 of 1 pt 6 of 9 (0 complete) P14-12 (similar to Quastion H



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Answer #1

Profit Margin = Net Income /Sales

= $1,752,928 / $14,146,150

= 0.1239 i.e 12.39%

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