Question

Question: Key comparative figures (\( millions) for both Apple and Google follow.

Key Figure Apple Google

Liabilities + Equity . . . . . . . . . . . . \)290,479 $147,461

Net income . . . . . . . . . . . . . . . . . . 53,394 16,348

Revenues and sales . . . . . . . . . . . 233,715 74,989

Required 4. Is return on assets satisfactory for (a) Apple and (b) Google? (Assume competitors average a 10% return.)

Short answer

Apple and Google have a more satisfactory return on assets than their competitor

Step-by-step solution

Comparison of Apple’s ROA with Competitor Firm

The Return on assets of Apple is 20.44% and the Return on assets of the competitor firm is 10%. It is clearly visible that the return on assets of Apple is way better than its competitor. Return on assets of Apple is satisfactory as compared to the competitor firm

Comparison of Google’s ROA with Competitor Firm

The return on assets of Google is 11.81% and on the other hand, competitor firm has a return on assets of 10%. There is a clear difference between the return on assets of Google and the competitor firm. Google has more satisfied than that competitor firm