Complete the following for this assignment: • Use the comparative analysis below for S&J Plumbing,...

Question

Complete the following for this assignment:
• Use the comparative analysis below for S&J Plumbing, Inc. to determine if S&J Plumbing's return
on assets is comparable to its competitors in the same industry.
• Use the li
ary and other resources to research competitors.
• Support your answers.

fa-unit-3-0kdhch4l-dr1gfj0l.pdf

Angel K · Accepted Answer

COMPARATIVE ANALYSIS
S & J PLUMBING, INC.
COMPARITIVE ANALYSIS BASED ON RETURN ON ASSETS
A company needs to be financially strong and healthier enough to compete in today’s world of globalization and changing business environment. The financial statements of a company play an important role in determining the position and health of a company. The users of financial statements uses a number of tools to analyses the present stability and liquidity position of the company.
The main tool used by the financial analysts and investors and potential investors are ratio analysis. It is an effective tool used to compare and asses the items in a financial statement. A number issue of an entity such as liquidity, efficiency, solvency and profitability can be evaluated using the results derived from ratio analysis. It helps to gain an in depth view into an entities affairs. There are also many industrial standards for the outcomes of the ratio analysis which makes it easier to compare and derive at a conclusion on the results of the analysis. The industrial standards involve higher, medium, average and lower levels which interpret different meanings and positions for the financial position of a company in comparison to its competitors in the same industry.
In the present case of S & J Plumbing the company has shown a comparative analysis of the financial data’s using the return on assets ratio. A comparative analysis can help to find out how the company has been performing over time and it can also predict on the performance of the company in its near future. A return on assets ratio helps to find out how effectively a company is able to produce a return on its investments made on the assets of the company.

Complete the following for this assignment: • Use the comparative analysis below for S&J Plumbing, Inc. to determine if S&J Plumbing's return on assets is comparable to its competitors in the same...

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