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In simple terms, the DuPont equation for Return on Equity is the following. ROE = NPM * TAT * EM . Where: ROE = return
In simple terms, the DuPont equation for Return on Equity is the following.
ROE = NPM * TAT * EM | |
. | |
Where: | ROE = return on equity (in simpler form) = Net income/Total stockholders equity |
NPM = net profit margin (in simpler form) = Net income/Total revenues | |
TAT = total asset turnover (in simpler form) = Total revenues/Total assets | |
EM = equity multiplier = 1+Debt/Equity Figure out all equations for Lowes with the data below |
figuer out all equetions from above .
Lowe's
Income Statement
All numbers in thousands
Revenue | 1/29/2016 | 1/30/2015 | 1/31/2014 |
Total Revenue | 59,074,000 | 56,223,000 | 53,417,000 |
Cost of Revenue | 38,504,000 | 36,665,000 | 34,941,000 |
Gross Profit | 20,570,000 | 19,558,000 | 18,476,000 |
Operating Expenses | |||
Research Development | - | - | - |
Selling General and Administrative | 14,115,000 | 13,281,000 | 12,865,000 |
Non Recurring | - | - | - |
Others | 1,484,000 | 1,485,000 | 1,462,000 |
Total Operating Expenses | - | - | - |
Operating Income or Loss | 4,971,000 | 4,792,000 | 4,149,000 |
Income from Continuing Operations | |||
Total Other Income/Expenses Net | - | - | - |
Earnings Before Interest and Taxes | 4,419,000 | 4,276,000 | 3,673,000 |
Interest Expense | - | - | - |
Income Before Tax | 4,419,000 | 4,276,000 | 3,673,000 |
Income Tax Expense | 1,873,000 | 1,578,000 | 1,387,000 |
Minority Interest | - | - | - |
Net Income From Continuing Ops | 2,546,000 | 2,698,000 | 2,286,000 |
Non-recurring Events | |||
Discontinued Operations | - | - | - |
Extraordinary Items | - | - | - |
Effect Of Accounting Changes | - | - | - |
Other Items | - | - | - |
Net Income | |||
Net Income | 2,546,000 | 2,698,000 | 2,286,000 |
Preferred Stock And Other Adjustments | - | - | - |
Net Income Applicable To Common Shares | 2,546,000 | 2,698,000 | 2,286,000 |
Lowe's
Balance Sheet
All numbers in thousands
Period Ending | 1/29/2016 | 1/30/2015 | 1/31/2014 |
Current Assets | |||
Cash And Cash Equivalents | 405,000 | 466,000 | 391,000 |
Short Term Investments | 307,000 | 125,000 | 185,000 |
Net Receivables | - | - | 252,000 |
Inventory | 9,458,000 | 8,911,000 | 9,127,000 |
Other Current Assets | 391,000 | 349,000 | 341,000 |
Total Current Assets | 10,561,000 | 9,851,000 | 10,296,000 |
Long Term Investments | 222,000 | 354,000 | 279,000 |
Property Plant and Equipment | 19,577,000 | 20,034,000 | 20,834,000 |
Goodwill | - | - | - |
Intangible Assets | - | - | - |
Accumulated Amortization | - | - | - |
Other Assets | 665,000 | 1,349,000 | 1,323,000 |
Deferred Long Term Asset Charges | 241,000 | 133,000 | 133,000 |
Total Assets | 31,266,000 | 31,721,000 | 32,732,000 |
Current Liabilities | |||
Accounts Payable | 6,453,000 | 5,897,000 | 5,793,000 |
Short/Current Long Term Debt | 1,104,000 | 552,000 | 435,000 |
Other Current Liabilities | 2,935,000 | 2,899,000 | 2,648,000 |
Total Current Liabilities | 10,492,000 | 9,348,000 | 8,876,000 |
Long Term Debt | 11,545,000 | 10,806,000 | 10,086,000 |
Other Liabilities | 846,000 | 869,000 | 896,000 |
Deferred Long Term Liability Charges | 729,000 | 730,000 | 1,021,000 |
Minority Interest | - | - | - |
Negative Goodwill | - | - | - |
Total Liabilities | 23,612,000 | 21,753,000 | 20,879,000 |
Stockholders' Equity | |||
Misc. Stocks Options Warrants | - | - | - |
Redeemable Preferred Stock | - | - | - |
Preferred Stock | - | - | - |
Common Stock | 455,000 | 480,000 | 515,000 |
Retained Earnings | 7,593,000 | 9,591,000 | 11,355,000 |
Treasury Stock | - | - | - |
Capital Surplus | - | - | - |
Other Stockholder Equity | -394,000 | -103,000 | -17,000 |
Total Stockholder Equity | 7,654,000 | 9,968,000 | 11,853,000 |
Net Tangible Assets | 7,654,000 | 9,968,000 | 11,853,000 |
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