Circuit City (CC), Best Buy (BBY), WalMart (WMT), Dell Computers (DELL), Apple (AAPL) DuPont Analysis of ROE Profit margin Asset turnover Return on assets (ROA) Financial Leverage Return on equity (ROE) -2.72% 3.14 -8.54% 2.49 BBY 3.52% 3.19 11.21% 2.94 WMT 3.40% 2.29 7.79% 2.53 19.70% DELL 4.82% 2.22 10.69% 7.20 76.97% 14.56% 0.95 13.79% 1.74 24.06% -21.29% | 32.93% Additional Ratios Accounts receivable turnover Inventory turnover Debt-to-assets ratio 35.48 5.92 60.00% BBY 72.90 6.47 65.94% WMT 102.50 8.14 60.49% DELL 7.95 41.92 86.11% AAPL 14.66 45.82 42.67% 026 Which company collects its receivables the quickest? (A. CC/B. BBY/ C. WMT/ D. DELL / E. AAPL) Q27 Which company has the least days in inventory? (A. CC/B. BBY/ C. WMT/D. DELL /E. AAPL) Which company was the least profitable? (A. cc/B. BBY/C. WMT/ D. DELL/E. AAPL) 028 029 Which company is assuming the least financial risk? (A. CC/ B. BBY/ C. WMT/D. DELL/E. AAPL) 030 The Price-Earnings Ratio reflects investors assessments of a future. Which of the following statements is true a. will be lower if investors feel the stock is underpriced. b. will be higher if investors feel the stock is overpriced c. will be higher if investors believe earnings will increase in the future. d. will be higher when there is a belief a company will have poor quality earnings. 031 Grocery stores most likely have a. high net Profit Margin (ROS). b. low Inventory Turnover