As consultants in advisory services, we are hired by JR Corporation to help analyze its regional operations in the contiguous U.S. JR wishes to draw on our expertise in financial statement analysis to help identify further expansion of operations. A Tableau Dashboard is provided to aid our analysis.
1. Compute profit margin for each region.
2. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of sales. If we use profit margin to guide our recommendation, which region do we suggest?
3. Compute return on total assets for each region.
4. The company asks us which region it should focus on if it wishes to get the largest net income from each dollar of assets invested. If we use return on total assets to make our decision, which region do we recommend?