BALANCE SHEET INFO CAN BE FOUND AT WWW.MORNINGSTAR.COM

Taking the information from the Income statements and the Balance sheets, calculate the companys net profit margin, total assets turnover equity multiplier, and return on equity using the DuPont formula for the company,Cisco Systems for three years. Show your calculation! (use www.morningstar.com to find the info from income statement and balance sheets)

ROE = Net profit margin x Total assets turnover x Equity multiplier

= Net income/Sales x Sales/Total assets x Total assets/Common equity

You can use Revenue instead of Sales.

b. Compare the results to main competitor. For the major competitor you can use ratios from the Internet or calculate them for the last year.

Write analysis of the results that you received. In your report please answer the question: If the management of the company would like to improve their return on equity, what should the management of these companies do?