Po- Yen Devices Inc. and Kejia Computer Ltd. are competing businesses. Selected data from the financial statements for the two companies for the year ended 31 December 20X2 are shown below. ? Required: 1. Compute the following ratios for both companies (for convenience, use 20X2 year- end balance sheet amounts instead of averages): a. Operating margin (i. e., earnings ÷ revenue) b. Return on assets c. Return on share equity d. Total debt- to- shareholder’s equity 2. Evaluate the two companies, based on the ratios you have calculated. Which company do you think is moreprofitable?
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