Question
DuPont identity.Given the data in the popup window, Company Sales Net Income Total Assets Liabilities MSFT 77,755 21,743 142,415 63,436 BA 86,657 4,429 92,635 77,743
DuPont identity.Given the data in the popup window,
Company Sales Net Income Total Assets Liabilities MSFT 77,755 21,743 142,415 63,436 BA 86,657 4,429 92,635 77,743 WMT 468,523 16,874 203,147 126,260 PG 82,438 11,284 139,219 71,147 WM 13,879 213 22,576 16,781
for the following five actively traded companies: Microsoft (MSFT), Boeing (BA), Walmart (WMT), Procter and Gamble (PG), and Waste Management (WM), use the three components of the DuPont
identityoperating
efficiency, as measured by the profit margin (net income/sales); asset management efficiency, as measured by asset turnover (sales/total assets); and financial leverage, as measured by the equity multiplier (total assets/total
equity)to
find the return on equity for these five companies. Based on these components and the ROE, which company do you think is doing the best job for its shareholders?
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