Question
Compute all ratios for Strong Tie (Exhibit 3), the DuPont analysis of Strong Ties ROE (Exhibit 4), and the vertical (Exhibits 1A and 2A) and
Compute all ratios for Strong Tie (Exhibit 3), the DuPont analysis of Strong Ties ROE (Exhibit 4), and the vertical (Exhibits 1A and 2A) and horizontal (Exhibits 1B and 2B) common size income statements and balance sheets. Address Strong Ties competitive position (you should be able to address all competitive forces with the exception of availability of substitutes). In particular, focus your analysis in terms of Strong Ties ability to generate excess profit (i.e. economic value added or EVA). For each of the four ratio categories (liquidity, asset control, leverage, and profitability), has Strong Tie shown any areas of improvement? Any areas of concern? Does it appear that Strong Ties expenditures on automation had the anticipated impact?
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