Question
Based on the results of your analysis above, assess the company's overall profitability and dividend policy. Explain which ratios indicate particular strengths and/or weaknesses within
Based on the results of your analysis above, assess the company's overall profitability and dividend policy. Explain which ratios indicate particular strengths and/or weaknesses within the company. Assume the following industry averages: (3 points) FY 2017 ROI = 2.3%; ROE = 19.8%; Gross Profit = 34.1%; Operating Profit = 4.1%; P/E ratio = 26.8; Div Yield = 1.5% FY 2016 ROI = 5.0%; ROE = 43.9%; Gross Profit = 31.6%; Operating Profit = 3.7%; P/E ratio = 20.5; Div Yield = 1.8%
Company average: FY 2017 ROI = 19.7%; ROE = 298.2%; Gross Profit = 2803%; Operating Profit = 14.5%; P/E ratio = 28.3; Div Yield = 1.7%
FY 2016 ROI =18.7 %; ROE = 149.4%; Gross Profit = 31.6%; Operating Profit = 14.2%; P/E ratio = 21.4; Div Yield = 2.0%
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