explain fully in your own words at least 100 word . . cite your work please , "dont copy and paste from websites please please" I will check.

1) DuPont analysis is the performance measurement analysis of ROE (Return on Equity). ROE has impact of three elements which are profit margin, asset efficiency and financial leverage.

The analysts use DuPont analysis to verify the constituents for alteration in Return on Equity. This analysis is used in the high profit margin, high turnover with low margin, high leverage industries. The analysts study the competitors statements for financial leverage comparisons, study of retail stores, and competitive advantage for measurement of ROE. The low performance is the base to work on the weaknesses of the firm.

2) The Five C criteria are used to determine the borrowing potential of the company. The Five Cs are companys capacity to generate sufficient cash flows, collateral to secure the loan, capital investment by the shareholders, conditions in the economy and character or track record of the borrower. The times interest earned ratio is studied for the risk involved in meeting debt obligations. The low and fluctuating ratio is a problem. Debt to equity ratio is better if low as it supports the long term paying ability of the firm. Other ratios like debt ratio, long term debt to capitalization ratio are also considered to determine the firms repaying capacity.

If we choose the company coca cola, it has current ratio is normal. The debt ratio is increasing and the comfortable times interest earned ratio. The profitability of the company is also good.

3) The Coca Cola is the iconic company for the bond investors but the default probabilities are average for the company. The bond issues of the company offered a good reward to risk ratio. The bond ratings are important for the assessment of the credit quality of the bond issues. The bond ratings are critical to the management of the company because the company has foreign investors. Also the ratings are important to the domestic investors for investment.

4) The total liabilities include both the short term and long term debt. The short term debt includes the day to day working capital requirements and may mislead the figures with the long term perspective of the management. While the calculation of the financial leverage, the long term debt should be considered and short term debt should be ignored. Because the short term debt is liquid in nature. The short term debt is when clubbed with the long term debt, the interpretation of figures becomes difficult.

*** Q) Based on the answers above,What were the most important things learned from the study of these queations above and financial analyzing past weeks? What will you "take away" from the four answers?