S&J Plumbing, Incorporated’s income statement shows a net profit before tax of $468 and net sales of $7,482 for 2010. Total assets are at $3,244. The balance sheet lists the company’s equity for fiscal year ending 2010 as $1,746.
Calculate the following ratios for this company:
- Return on sales ratio (net profit margin)
- Return on assets (ROA)
- Return on equity (ROE)
Write a paper of 2-3 pages about the efficiency of S&J Plumbing, Inc.