Data analytics is the process of examining data sets in order to draw conclusions about the information

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Data analytics is the process of examining data sets in order to draw conclusions about the information they contain. If you haven’t completed any of the prior data analytics cases, follow the instructions listed in the Chapter 1 Data Analytics case to get set up. You will need to watch the videos referred to in the Chapters 1 - 3 Data Analytics cases. No additional videos are required for this case. All short training videos can be found here: https://www.tableau.com/learn/training#getting-started. In the Data Analytics Cases in the previous chapter, you used Tableau to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc. regarding the return on stockholders’ equity. This time, you investigate two aspects of the relative desirability of investing in stock of the two companies. 


Required: 

For each of the two companies in the most recent five-year period, 2017-2021, use Tableau to calculate and display the trends for (a) the dividend payout ratios [Dividends paid / Income from continuing operations] and (b) the price-earnings ratio [Market price per share / Diluted earnings per share]. The 2021 industry averages for the dividend payout and the price-earnings ratio are 20.2% and 27.9%, respectively. Based upon what you find, answer the following questions: 

1. Which of the two companies, GPS Corporation or Tru, Inc., pays investors the greater percentage of its earnings during the period 2017-2021? 

2. Is the dividend payout ratio for Tru, Inc. (a) increasing significantly, (b) decreasing significantly, or (c) remaining relatively the same during the period 2017-2021? 

3. Is the price-earnings ratio for GPS Corporation (a) increasing significantly, (b) decreasing significantly, or (c) remaining relatively the same during the period 2017-2021? 

4. Is the price-earnings ratio for Tru, Inc. (a) increasing significantly, (b) decreasing significantly, or (c) remaining relatively the same during the period 2017-2021?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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