Question
DuPont Identity) 1)Using the DuPont Identity equation, compare your company's 2014 ROE with competitor's 2014 ROE. Find out what makes difference in ROEs between your
DuPont Identity)
1)Using the DuPont Identity equation, compare your company's 2014 ROE with competitor's 2014 ROE. Find out what makes difference in ROEs between your company and competitor.
2)Using the DuPont Identity equation, compare your company's 2013 ROE with 2014 ROE. Find out what makes difference in ROEs between two periods if there is any difference.
5.Using the dividend payout ratios of your company and competitor, compute the internal growth rates and sustainable growth rates for both companies and compare each other.
Per Finance.yahoo.com
Direct Competitor Comparison |
---|
|
Return on Assets Ratio = Net Income/ Total Average Assets, where total average assets = (Assets in the beginning+ assets in the end)
For PWS for year 2014,
Net Income = 1,26,516
Total Average Assets = (3,376,436+3,392,570)/2 = 3384503
Hence Return to Asset Ratio = 126516/3384503 = 0.037
For CWS, for year 2014,
Net Income = (27,404)
Total Average Assets = (649,897+663,119)/2 = 656508
ROA= - 0.041
PWS Income Statement and Balance Sheet
Period Ending | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | ||
---|---|---|---|---|---|
Total Revenue | 2,008,997 | 2,026,039 | 1,896,741 | ||
Cost of Revenue | - | - | - | ||
Gross Profit | 2,008,997 | 2,026,039 | 1,896,741 | ||
Operating Expenses | |||||
Research Development | - | - | - | ||
Selling General and Administrative | 1,500,198 | 1,504,425 | 1,384,912 | ||
Non Recurring | - | - | - | ||
Others | 285,605 | 296,491 | 274,118 | ||
Total Operating Expenses | - | - | - | ||
Operating Income or Loss | 241,099 | 232,916 | 237,711 | ||
Income from Continuing Operations | |||||
Total Other Income/Expenses Net | (6,159) | 11,896 | (18,763) | ||
Earnings Before Interest And Taxes | 234,940 | 246,052 | 235,872 | ||
Interest Expense | 61,917 | 60,754 | 57,428 | ||
Income Before Tax | 173,023 | 185,298 | 178,444 | ||
Income Tax Expense | 33,676 | 58,443 | 67,122 | ||
Minority Interest | - | - | - | ||
Net Income From Continuing Ops | 144,421 | 125,763 | 94,357 | ||
Non-recurring Events | |||||
Discontinued Operations | - | - | - | ||
Extraordinary Items | - | - | - | ||
Effect Of Accounting Changes | - | - | - | ||
Other Items | - | - | - | ||
Net Income | 126,516 | 117,970 | 94,357 | ||
Preferred Stock And Other Adjustments | - | - | - | ||
Net Income Applicable To Common Shares | 126,516 | 117,970 | 94,357 |
Period Ending | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | |
Assets | ||||
Current Assets | ||||
Cash And Cash Equivalents | 42,157 | 32,478 | 30,416 | |
Short Term Investments | - | - | - | |
Net Receivables | 217,894 | 232,147 | 242,326 | |
Inventory | - | - | - | |
Other Current Assets | 35,589 | 37,035 | 40,335 | |
Total Current Assets | 295,640 | 301,660 | 313,077 | |
Long Term Investments | 6,352 | 5,659 | 4,134 | |
Property Plant and Equipment | 1,004,029 | 957,499 | 947,233 | |
Goodwill | 937,294 | 905,347 | 929,114 | |
Intangible Assets | 165,929 | 220,078 | 287,847 | |
Accumulated Amortization | - | - | - | |
Other Assets | 952,775 | 983,290 | 974,096 | |
Deferred Long Term Asset Charges | 14,417 | 19,037 | 20,060 | |
Total Assets | 3,376,436 | 3,392,570 | 3,475,561 | |
Liabilities | ||||
Current Liabilities | ||||
Accounts Payable | 282,606 | 255,552 | 270,061 | |
Short/Current Long Term Debt | 5,428 | 5,969 | 6,907 | |
Other Current Liabilities | 42,400 | 40,437 | 30,400 | |
Total Current Liabilities | 330,434 | 301,958 | 307,368 | |
Long Term Debt | 1,552,617 | 1,542,289 | 1,681,370 | |
Other Liabilities | 137,744 | 128,865 | 110,447 | |
Deferred Long Term Liability Charges | 126,848 | 129,887 | 103,795 | |
Minority Interest | - | - | - | |
Negative Goodwill | - | - | - | |
Total Liabilities | 2,147,643 | 2,102,999 | 2,202,980 | |
Stockholders' Equity | ||||
Misc Stocks Options Warrants | - | - | - | |
Redeemable Preferred Stock | - | - | - | |
Preferred Stock | - | - | - | |
Common Stock | 1,734,372 | 1,773,734 | 1,773,530 | |
Retained Earnings | (377,172) | (398,414) | (451,539) | |
Treasury Stock | - | - | - | |
Capital Surplus | 4,023 | 2,796 | 2,166 | |
Other Stockholder Equity | (132,430) | (88,545) | (51,576) | |
Total Stockholder Equity | 1,228,793 | 1,289,571 | 1,272,581 | |
Net Tangible Assets | 125,570 | 164,146 | 55,620 |
CWS Inome and Balance Sheet
Period Ending | Apr 30, 2014 | Apr 30, 2013 | Apr 30, 2012 | |
Assets | ||||
Current Assets | ||||
Cash And Cash Equivalents | 2,540 | 1,831 | 4,610 | |
Short Term Investments | - | - | - | |
Net Receivables | 55,570 | 52,547 | 52,465 | |
Inventory | 3,905 | 3,494 | 3,503 | |
Other Current Assets | 8,790 | 6,673 | 6,778 | |
Total Current Assets | 70,805 | 64,545 | 67,356 | |
Long Term Investments | 16,752 | 20,399 | 22,925 | |
Property Plant and Equipment | 403,424 | 422,502 | 416,717 | |
Goodwill | 119,139 | 115,928 | 101,706 | |
Intangible Assets | 13,420 | 11,674 | 2,970 | |
Accumulated Amortization | - | - | - | |
Other Assets | 26,357 | 28,071 | 22,069 | |
Deferred Long Term Asset Charges | - | - | - | |
Total Assets | 649,897 | 663,119 | 633,743 | |
Liabilities | ||||
Current Liabilities | ||||
Accounts Payable | 88,861 | 86,880 | 79,680 | |
Short/Current Long Term Debt | 885 | 1,218 | 1,228 | |
Other Current Liabilities | - | - | 338 | |
Total Current Liabilities | 89,746 | 88,098 | 81,246 | |
Long Term Debt | 507,134 | 494,987 | 473,381 | |
Other Liabilities | 54,600 | 57,785 | 55,549 | |
Deferred Long Term Liability Charges | 6,954 | 6,798 | 5,336 | |
Minority Interest | (130) | 4,166 | 1,800 | |
Negative Goodwill | - | - | - | |
Total Liabilities | 658,304 | 651,834 | 617,312 | |
Stockholders' Equity | ||||
Misc Stocks Options Warrants | - | - | - | |
Redeemable Preferred Stock | - | - | - | |
Preferred Stock | - | - | - | |
Common Stock | 401 | 397 | 270 | |
Retained Earnings | (347,472) | (324,377) | (270,235) | |
Treasury Stock | - | - | - | |
Capital Surplus | 338,625 | 335,857 | 288,348 | |
Other Stockholder Equity | 39 | (592) | (1,952) | |
Total Stockholder Equity | (8,407) | 11,285 | 16,431 | |
Net Tangible Assets | (140,966) | (116,317) | (88,245) |
Period Ending | Apr 30, 2014 | Apr 30, 2013 | Apr 30, 2012 | ||
---|---|---|---|---|---|
Total Revenue | 497,633 | 455,335 | 467,950 | ||
Cost of Revenue | 354,592 | 323,014 | 318,068 | ||
Gross Profit | 143,041 | 132,321 | 149,882 | ||
Operating Expenses | |||||
Research Development | - | - | - | ||
Selling General and Administrative | 62,931 | 63,324 | 60,395 | ||
Non Recurring | 7,855 | - | 40,746 | ||
Others | 60,339 | 56,576 | 58,415 | ||
Total Operating Expenses | - | - | - | ||
Operating Income or Loss | 11,916 | 12,421 | (11,033) | ||
Income from Continuing Operations | |||||
Total Other Income/Expenses Net | 1,091 | (18,919) | (11,434) | ||
Earnings Before Interest And Taxes | 12,664 | (10,939) | (31,102) | ||
Interest Expense | 38,175 | 41,570 | 45,008 | ||
Income Before Tax | (25,511) | (52,509) | (76,110) | ||
Income Tax Expense | 1,799 | (2,526) | 1,593 | ||
Minority Interest | 4,309 | 321 | 6 | ||
Net Income From Continuing Ops | (27,310) | (49,983) | (77,703) | ||
Non-recurring Events | |||||
Discontinued Operations | (94) | (4,480) | 111 | ||
Extraordinary Items | - | - | - | ||
Effect Of Accounting Changes | - | - | - | ||
Other Items | - | - | - | ||
Net Income | (27,404) | (54,463) | (77,592) | ||
Preferred Stock And Other Adjustments | - | - | - | ||
Net Income Applicable To Common Shares | (23,095) | (54,142) | (77,586) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started