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1) Decompose Peloton's ROE into its component ratios by quarter, as we did in class. 2) Discuss the overall patterns you see (ignoring seasonality). 3)

1) Decompose Peloton's ROE into its component ratios by quarter, as we did in class.

2) Discuss the overall patterns you see (ignoring seasonality).

3) Compute the same-quarter to same-quarter percentage changes in:

Revenues

Cost-of-revenues

Gross profit

4) Compute the calendar quarter to next calendar quarter changes in:

Revenues

Cost-of-revenues

Gross profit

Income (loss) from operations

5) What do you see that would have prompted

L1 Capital

to short Peloton's stock?

6) What do you think prompted

L1 Capital

to 'cover' its short position (i.e. buy back the shares it

had sold in order to complete the transaction) at $52 ?

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