Question

		2018	2017	2016	2015	2014	Average
Sales	A	4.22%	2.22%	2.40%	6.99%		3.96%
	B	6.53%	6.30%	4.23%	11.91%		7.25%
	C	-0.56%	-0.34%	3.58%	9.17%		2.96%
Gross Profit	A	4.01%	3.26%	3.84%	5.77%		4.22%
	B	5.88%	8.71%	3.13%	11.18%		7.23%
	C	0.96%	0.97%	1.14%	8.75%		2.96%
Net Income	A	-26.02%	45.85%	56.18%	1.17%		19.30%
	B	-23.31%	78.39%	4.34%	9.36%		17.20%
	C	-8.99%	0.76%	-2.70%	5.69%		-1.31%
Total Assets	A	2.67%	9.17%	1.48%	6.16%		4.87%
	B	2.89%	19.85%	11.54%	10.86%		11.29%
	C	3.81%	1.32%	7.57%	13.79%		6.62%
Total Liabilities/Debt	A	78.09%	76.92%	79.15%	79.12%	76.39%	77.93%
	B	76.10%	77.34%	80.09%	77.10%	76.74%	77.47%
	C	74.89%	77.26%	77.53%	75.42%	75.33%	76.09%
Total Equity	A	21.91%	23.08%	20.85%	20.88%	23.61%	22.07%
	B	23.67%	22.36%	19.59%	22.34%	22.87%	22.17%
	C	25.11%	22.74%	22.74%	24.58%	24.67%	23.97%

Make a conclusion about A's performance in comparison to B's and C's

Answer 1

A's average Sales and average Gross Profit as shown is lesser as compared to B and Higher as Compared to C. But Average Net Profit of A is the Highest, Although there is a net loss in 2018. Company A needs to increase its sales volume and need to decrease their direct expenses to increase Average Gross Profits as high as B.

If we saw the performance from Average Return on Assets point of view then. A's average return on assets is highest. and from this point of view A's Performance is best.

Return on Assets = (Net income %)/(Total Assets)*100

Average A's Return on Assets = 1930/430*100 = 448.84%

Average B's Return on Assets = 1720/1129*100 = 152.35%

Average C's Return on Assets = -131/662*100 = -19.79%

Similarly, Average Return on Equity is also highest in the case of A as compared to B and C. From Average Return on equity point of view too A's Performance is best.

Average A's Return on Equity = 19.30/22.07*100 = 87.45%

Average B's Return on Equity = 17.20/22.17*100 = 77.58%

Average C's Return on Equity = .1.31/23.97*100= -5.47%

However A needs to lower its debts or liabilities.