3. Calculate inventory turnover (Use Average Inventory) for XYZ. In one sentence, what does this turnover number mean?

4. Calculate ROE for XYZ for the most recent year? Break the ROE down using the Dupont Analysis (3 part)? Explain in a few sentences the implications for this firm? If the competitor firm has a ROE of 26.67% => net margin of 31.45%, asset turnover of .32 and leverage of 2.65, how does XYZ compare to this competitor?

XYZ, Inc. 2018 42,294.00 13,509.00 28,785.00 10,102.00 9.752.00 Income Statement (all data in Millions) Year 2016 2017 Revenue 39,807.00 40,122.00 Cost of Goods Sold 14,030.00 12.912.000 Gross Profit 25.777.00 27.210.00 Selling. General, & Admin. Expense 10,017.00 10,074.00 Research & Development 10,261.00 10,339.00 Other Operating Expense 0 Total Operating Expense 20.278.00 20,413.000 Operating Income 5,499.00 6,797.000 Interest Income 328 3851 Interest Expense -693 -754 Net Interest Income -365 -3691 Other Income (Expense) -475 93 Pre-Tax Income 4,659.00 6,521.00 Tax Provision -7181 -4.103.00 Tax Rate % 15.41 62.92 Net Income (Continuing Operations) 3.941.00 2.418.00 Net Income (Discontinued Operations) 0 0 Other Income (Minority Interest) -21 -24 Net Income 3,920.00 2,394.00 19,854.00 8,931.00 343 2019 46,840.00 14.112.00 32.728.00 10.615.00 9,872.00 O 20,487.00 12.241.00 274 -893 -619 -158 11.464.00 -1.687.00 14.72 9.777.00 0 66 9,843.00 -772 -4291 199 8.701.00 -2,508.00 28.82 6.193.00 27 6,220.00 Shares Outstanding Year Cash And Cash Equivalents 2,787.00 2,748.00 2,679.00 2,580.00 Balance Sheet (all data in Millions) 2016 2017 2018 6.515.00 6.092.00 7.965.00 2019 9.676.00 B U A. A E = = = 7.826.00 14,341.00 7.019.00 2.406.00 8.498.00 6.873.00 899 8.864.00 7,071.00 774 10,450.00 6.778.00 0 0 0 0 o 0 0 Blololo 7,018.00 O 6.873.00 0 6.778.00 7.071.00 0 o o 0 O 0 o 0 0 log Marketable Securities Cash, Cash Equivalents, Marketable Securities Accounts Receivable Notes Receivable Loans Receivable Other Current Receivables Total Receivables Inventories, Raw Materials & Components Inventories, Work In Process Inventories, Inventories Adjustments Inventories, Finished Goods Inventories, Other Total Inventories Other Current Assets Total Current Assets Investments And Advances Land And Improvements Buildings And Improvements Machinery, Furniture. Equipment Construction In Progress Other Gross PPE Gross Property. Plant and Equipment Accumulated Depreciation Property. Plant and Equipment Intangible Assets Goodwill Other Long Term Assets Total Long-Term Assets Total Assets Accounts Payable Total Tax Payable Other Current Payables Current Accrued Expense Accounts Payable & Accrued Expense Short-Term Debt Short-Term Capital Lease Obligation Short-Term Debt & Capital Lease Obligation current Deferred Revenue Current Deferred Taxes Liabilities 0 4.866.00 4.866.00 4,389.00 30.614.00 11,416.00 412 11.439.00 14.033.00 1871.00 o o 5.096.00 5.090.00 4.299.00 24,766.00 12.123.00 365 11.726.00 14,649.00 2,301.00 o 29.041.00 -16.602.00 12,439.00 32,467.00 18.284.00 6,075.00 63.106.00 87.872.00 5,440.00 5.440.00 4.500.00 25,875.00 6.233.00 333 11,486.00 14.441.00 3.355.00 0 9.978.00 5.978.00 4,277.00 27,483.00 1.469.00 343 11.999.00 13 3944.00 5.013.00 D 27.775.00 15.749.00 12.026.00 32.739.00 -17,686.00 29,615.00 -10,324.00 13.291.00 31.357.00 19.253.00 35.467.00 18.162.00 5,854.00 64,763.00 15.033.00 33.621.00 19.425.00 6,771.00 56,914.00 84.397.00 5.891.00 56.762.00 82.637.00 95,377.00 2.807.00 2.239.00 3,102.00 708 1.320.00 10.427.00 3,738 00 736 1,587.00 12.549.00 1.316.00 10,274.00 16,636.00 568 O 13,537.00 3.037.00 o 2.057.00 3,318.00 1,971.00 1.458.00 10.151.00 16,898.00 9.308.00 0 5.308.00 0 18.610.00 3,610.00 0 568 3.610.00 o O 0 Oo 0