1. Describe (in general) the insight provided by ratio and common-sized income statement analyses.

In other words, why do the analyses.

2. Describe the relationship of ROE to the other DuPont ratios. How is each ratio calculated? What is

the insight provided by each ratio?

3. Why compare inventory turnover, current asset turnover, and long-term asset (fixed asset)

turnover for these specific firms and what DuPont ratio does this comparison provide answers for?

4. Why compare revenue growth?

5. Why compare common sized income statements for these firms and what DuPont ratio does this

comparison provide answers for?

6. Describe the limitations of such analyses.