For Avantika, what started as puppy love actually turned into an everlasting bond with DuPont Decomposition Analysis? Like two lovebirds, Avantika was dating financial ratios for almost a decade. In the table below – Avantika has provided you with four ratios related to Profitability Analysis i.e., the ratios enabling DuPont Decomposition analysis for four companies, namely, Anik Industries⁵⁰ (Milk Processing and Other diverse sectors), Gayatri Bioorganics⁵¹ (Starch Manufacturer), Lawreshwar Polymers⁵² (Footwear Manufacturer) and Mukand Engineering⁵³ (Construction Engineering) for four recent years.

(a) A few numbers up there are missing. You are required to fill the same.

(b) As you can observe – all the four companies have their own problem area. You are required to identify the same? Discuss your reasoning for the same.

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Financial Ratio (s) Dupont Ratios for Four Companies for Four Years Year 4 Year 3 (12m) (12m) Total Asset Turnover (captures Asset Utilization of the entity) Equity Multiplier (captures Financial Leverage of the entity) Net Profit Margin (%) (captures the entity's Cost-Price difference) Return on Equity (%) (captures the overall performance) Total Asset Turnover (captures Asset Utilization of the entity) Equity Multiplier (captures Financial Leverage of the entity) Net Profit Margin (%) (captures the entity's Cost-Price difference) Return on Equity (%) (captures the overall performance) Anik Industries Limited ? 3.5 0.9 4.7 Gayatri Bioorganics Limited 1.4 3.3 0.6 ? 1.8 4.4 0.8 ? 1.3 3.0 ? -7.7 Year 2 (12m) 1.5 3.8 0.8 4.7 1.2 ? 3.4 8.0 Year 1 (12m) 1.4 ? 0.9 5.3 1.1. 1.6 2.4 4.3